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I know what you’re thinking. You’re assuming that by admitting you don’t want to share power it’ll make you look like a control freak. And, there is some truth in that statement if we’re honest. After all, you’re the entrepreneur who put the wheels in motion and you want to be the one who decides whether it succeeds or fail. It’s part of the beauty of creating something from scratch and trying to get it to succeed.

Anyway, two heads are better than one, right? Many hands make light work, don’t they? In some cases, having different personalities in positions of power is a recipe for success if the balance is perfect. However, there is another proverb to keep in mind: too many cooks spoil the broth.

Here’s why you should be a lone ranger in business; at least in theory, anyway.

 

Varying Work Habits

You have one way of working and it’s how you have and continue to tackle problems to this day. Consider, then, that this new person comes aboard and instantly does things differently. For one, it may not be what the company needs to move forward. Remember that SMEs have to fight against the tide to survive, so anyone with a laid-back attitude may put the project in jeopardy. Even if they are helpful, the fact that they don’t conform to your methods can become annoying. As neurotic as this sounds, partners often let the smallest grievances escalate out of control. Before long, it may become the straw that broke the camel’s back. Don’t forget once they are in your head that they’re hard to get out. Focusing on their ethics isn’t going to help the business succeed because it’s a waste of resources.

 

Different Directions

Imagine that the person is a talented, effective and perfect partner in terms of work habits. However, not only do they invest in the same beliefs as you but want to go further. They want to take the company to the moon and back and they won’t stop until it happens. For a moment, this may sound like the ultimate dream, two brothers in arms shooting for the stars. Then, you realise that their ambition is greater than yours, as is their drive. Unfortunately, this often leads to a terminal split in the management because one person is pushing while the other is pulling. Arguing over long-term policy is as destructive as having a passive partner. In fact, it’s worse because your position can end up on the line.

 

Profit Sharing

Anyone in their right mind is happy to share money when the new hire ups sales and revenues. After all, there is a bigger piece of the pie to go around, a pastry that wouldn’t have existed otherwise. The problems occur when the profits go up by a tiny amount or stagnate. Then, there is someone taking a cut that A) doesn’t deserve it and B) is reducing your share. And, there is no way to tell whether they are going to be a success or a failure until they are a part of the team. Plus, the role is a management one, so it’s not as if there will be a trial period. Should the business be moving along at a healthy pace, then it’s best to stick it out and keep the profits.

 

Debt Collecting

Although it’s never nice, you have to consider the prospect of debt. All startups have some, but the extent of it is the most important thing. For instance, a credit card balance of a couple of grand is manageable. By transferring the balance, you can pay the minimum and avoid any large interest payments. On the other hand, a director penalty notice is a different kettle of fish. According to the rules, you have 21 days to find the money or else the authorities can add on fines. Before you know it, the situation may escalate out of control. Surely, though, it’s better to have a partner to shoulder the burden? Nope, not with a DPN because all the directors assume the total tax liability. That’s two portions of X amount as opposed to one, which isn’t healthy for the business.

 

Actions

Also, don’t forget that they work on behalf of the company. As a result, their actions have consequences for the firm as a whole. So, you may find yourself in a position where you’re liable. If not, the business can be put under the microscope and lose profits. Indirectly, this is money being taken out of your pocket.

Are you thinking about hiring a partner? What about now?

Chiino
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