Business With Partners or Alone?

Discussion in 'Growing and Managing a Business' started by Jashandeep, Dec 2, 2011.

  1. Jashandeep

    Jashandeep
    uix_expand uix_collapse
    Member

    Joined:
    Dec 2, 2011
    Messages:
    66
    Likes Received:
    3
    Hi all !

    I am working with a software development company from past 2 years.Now I am planning to start my own business in educational area.I have no so much funds to start that business.But there are my 3 friends who want to do work with me.Can any one give me an idea .What should I do.I have 2 options.

    1. Shall I wait until I have no fund.
    2. Go for partnership.

    Please give your views.
    thanks
     
  2. 50Cent

    50Cent
    uix_expand uix_collapse
    Member

    Joined:
    Jun 15, 2010
    Messages:
    782
    Likes Received:
    24
    1 - If all your 3 friends are all very trustworthy and also interested with experiences in this area.. why not? Go for a partnership and work together as a team to get your business name out.

    2 - You said you do not have so much funds to start that business meaning that you totally does not have funds to start the business ? Or you mean by you have the funds but not enough to get the business started?
    If you have enough funds and can handle every thing yourself from the start, you might not need any partners for now. If you can't handle by yourself and do not have the funds go for a partnership.
     
  3. DaveB

    DaveB
    uix_expand uix_collapse
    Member

    Joined:
    Dec 29, 2010
    Messages:
    179
    Likes Received:
    10
    A good idea might be to choose 1 out of 3 friends who the most likely to help you succeed or the compliments you the most. Start out working with that friend and developing that partnership. If it goes well then you can bring other friends/partners on in the future. There is the old saying "two heads are better then one" for a reason. Plus you get to split the risk/cost at least is something goes south. Just make sure you put everything in writing/contracts.
     
  4. Navida

    Navida
    uix_expand uix_collapse
    Member

    Joined:
    Nov 22, 2011
    Messages:
    165
    Likes Received:
    8
    Partnership is always been a risk according to my personal experience. So, I want to say that if you have enough resources then you should focus to do business alone. You may get rid of many tensions by doing so.
     
  5. Missnancyalex

    Missnancyalex
    uix_expand uix_collapse
    Member

    Joined:
    Dec 2, 2011
    Messages:
    85
    Likes Received:
    2
    If your friends are trustworthy you should go for partnership if not then wait until you manage the funds.
     
  6. Nick Porters

    Nick Porters
    uix_expand uix_collapse
    New Member

    Joined:
    Dec 6, 2011
    Messages:
    8
    Likes Received:
    0
    I think that Taking on a partner can, to a certain extent negate the affects of this by providing someone to discuss and develop ideas with.
     
  7. band

    band
    uix_expand uix_collapse
    Member

    Joined:
    Oct 15, 2011
    Messages:
    183
    Likes Received:
    36
    Go for partnership, to become a success business man, he must be able to work with others. Failure in partnership = failure to grow a business.
     
  8. Navida

    Navida
    uix_expand uix_collapse
    Member

    Joined:
    Nov 22, 2011
    Messages:
    165
    Likes Received:
    8
    Word ''Partnership'' is often consider notorious because there is a lot of risk involved in partnership. Partnership mostly creates contentions like Assets, liability distribution, profit distribution, expenses ratio distribution. And even also in management process.
    Although partnership has its benefits also that it is easy for 2 or more partners to oversee the functions of business more easily but the above mention risks may b more harmful than the benifits.
    so, I think start business as a sole proprietor, if you don't have a huge amount then startup with small scale business and then gradually upgrade your businesswith the passage of time.
    Do remember that (high Risk<==>High return) and (High investment <==> High risk).
     
  9. asad

    asad
    uix_expand uix_collapse
    Member

    Joined:
    Jan 22, 2012
    Messages:
    199
    Likes Received:
    8
    There are two things. If you have the product or any developed software along with marketing expertise then you have to start alone by firstly making a sale so that your expenses comes from there. As for as partnership is concerned, it depends on your relationship.
     
  10. Raj shah

    Raj shah
    uix_expand uix_collapse
    New Member

    Joined:
    Feb 1, 2012
    Messages:
    3
    Likes Received:
    0
    I think you can go with d partnership options with yr friends, and make sure u friends have legal partnership formalities done between d concerned friends before starting the new venture.....technoguru
     
  11. sigma

    sigma
    uix_expand uix_collapse
    Active Member

    Joined:
    Aug 31, 2009
    Messages:
    1,944
    Likes Received:
    283
    Both of them have it own advantage and disadvantage. Partnership can build more fund and more people to work together which is better than alone. However, when go to decision or money, there might have some argument happen in partnership.
    You gotta judge it by yourself on this kind of decision - alone or partnership
     
  12. StarBC

    StarBC
    uix_expand uix_collapse
    Member

    Joined:
    Jan 22, 2012
    Messages:
    44
    Likes Received:
    14
    May be you should try a Limited Partnership where you are a general partner who has all regular general partner's
    responsibilities and manages the company and your friends are limited partners who don't participate in your company's operations and enjoy their liability from the company's debt to the extent of their investments and receive their "returns of investments" as a compensation (similar to dividents)
     
  13. Gary Barzel

    Gary Barzel
    uix_expand uix_collapse
    Member

    Joined:
    Jan 10, 2011
    Messages:
    135
    Likes Received:
    48
    I think you should consider two different areas when it comes to Partnerships or going it alone.

    1. Do you have all the necessary skills alone to build a business. The best partnerships should bring complimentary skills to the table which should increase your business success rate.
    2. Defining the partnership. Whether you have known your potential partners for years or not, your partnership agreement should be structured clearly to define roles and compensation so that you minimise your chance of conflict in the future.
     
  14. sabinasmith

    sabinasmith
    uix_expand uix_collapse
    Member

    Joined:
    Dec 15, 2011
    Messages:
    35
    Likes Received:
    1
    If you want to do your own business then it will be better than partnership.
     
  15. sallya121

    sallya121
    uix_expand uix_collapse
    Member

    Joined:
    Nov 5, 2011
    Messages:
    86
    Likes Received:
    4
    If your friends have good ability and trustful,It is good to have partners in fact.Then you have a good and strong company to set up .But you also need sign contract to explain what jobs each of you do,it is more clear and no argument.
     
  16. firstchoicecar

    firstchoicecar
    uix_expand uix_collapse
    Member

    Joined:
    Mar 17, 2010
    Messages:
    713
    Likes Received:
    29
    They are both good, But as much as possible for me I will do my business alone. If I have a partner I think we will have a problem in decision making.
     
  17. AshleyWhiteBusin

    AshleyWhiteBusin
    uix_expand uix_collapse
    Member

    Joined:
    Dec 27, 2011
    Messages:
    92
    Likes Received:
    3
    You can let them in your business just be sure that you prepare a contract that has been signed by both parties (for terms and conditions). Also, you might want to have an insurance for your own share.
     
  18. jhonlarson

    jhonlarson
    uix_expand uix_collapse
    New Member

    Joined:
    Feb 6, 2012
    Messages:
    8
    Likes Received:
    1
    before if a person is going to start a company with partners so its important to sign a contract in between the partners, in contract you can also enable that when a partner leave the business at that time how much money he will get.
     
  19. Mark T

    Mark T
    uix_expand uix_collapse
    Active Member

    Joined:
    Dec 28, 2011
    Messages:
    1,201
    Likes Received:
    230
    You should probably start looking for partners that are interested with your company and probably share the same goals if possible. If you both ended up on having the same goal and targets for the company, you may now start creating a professional relationship with your partners, starting to convert your company into a larger business entity.
     
  20. Henry_Jakson

    Henry_Jakson
    uix_expand uix_collapse
    Member

    Joined:
    Jul 7, 2010
    Messages:
    89
    Likes Received:
    1
    According to me you should wait until you have enough funds to start a business. I personally don’t believe on partners and partnership in business. Partnership has a lot risks in spite of profits.
     

Share This Page