Partnership or Individual Ownership?

There are two types of small business entrepreneur. The first one with finance, who does not want to risk everything. The second, without finance, but with the vision and drive.

Why is it that those with vision and drive, almost always, do not have the finance? Only very few can have both or be savvy enough to acquire both. That’s a matter I prefer to leave for future discussion.

Let’s return to the matter of title. Partnership or On-Your-Own!

The advantage with a partnership is that you rely on others to back you up, whether or not you have the need to do so. Usually you need a partnership when you need financial fallback hidden behind your conviction that partners are going to be useful. Perhaps you need the additional equity with which they come, useless baggage notwithstanding. May be you are not so sure of yourself, after all.

The disadvantage with sole ownership is that you are the only reason for success or failure. But are you willing to make such a drastic move and rely only on yourself? Remember that you can distribute the glory of success to others who help or work for you along the way, but not failure.

In my 25-year career, I have come across only one partnership that worked, sort of works even today. I say, worked, because the partnership is now under pressure. A $300 Million company, run by two partners who used to respect exactly where their individual strengths complemented each other. That worked for 30 years, until each partner had to choose between their own grown up and educated children, children’s husbands and children’s wives, who all became involved in managing the pot of gold.

Partnership or sole ownership? More to follow…