Should You Partner Up on Business Ideas?

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Two minds. Two budgets. More experience. More knowledge. At the point of inception, it sounds like a great idea to partner up with someone on a business idea. We’re not talking about a side business; we’re going for the big one. The likelihood is that you know this person from work, an idea was sparked with an old friend, or you and a family member decide that you’re going to create something together.

Just wait.

Before you dive into anything. Before you get carried away. Before you spend any money, you need to take a step back.

A business is a long-term commitment and a lot will change over the course of its development. A lot. There are the kinds of things you will be able to anticipate, and ones that you won’t know about until you’re deep into your new life as a business owner.

The first thing you need to do is to make sure that your back is covered at every step along the way. You don’t know what’s coming, and as long as you keep that in-mind, you’ll be protected from most things.

There are a number of things you need to be clear with each other on, before you start. Unless there is absolute clarity, there is bound to be conflict later down the line. The easiest way to avoid all of these issues is by writing down where all parties stand. Here’s a list of things you may want to consider:

Business plan
Ownership splits
Roles
Hours
Exit strategy

In the experience I’ve had where friends and former work colleagues decide to go into business together, it’s always ended in tears. I won’t go into details, but I used to be around a lot of start-up owners back in London. They always seemed to do things in pairs. They always had great success at the beginning. Then something – or someone – else would get involved (intended to help expansion) and it would cause irreparable problems between the owners.

I was a victim to that situation once, as I was made redundant after the co-owners of an agency I was at couldn’t get along, in spite of a strong five years of great things. I don’t want to see other people go through that, when there are so many more sensible ways to grow a business without having to rely on a business partner.

I’m anti the idea for obvious reasons, but there are plenty of reasons why it probably makes sense to partner up with someone on an entrepreneurial pursuit. If you’re planning to do it, just be prepared for whatever comes your way.