In a sole proprietorship, you enjoy many perks by owning the business yourself, such as quick decision making, less legal mumbojumbo and fewer taxes, but your identity is intertwined with that of your business. If your business fails, you are personally liable for it.
There is truth behind the concept of “strength in numbers,” and you can team up with other people or entities to help your company take off. Besides pooling your resources to provide a more solid base for the business, you and your partner can benefit from the moral support each one provides through your day-to-day sharing of experiences.
Whether your business is taking a clear path or struggling through a rough patch, having a partner will make your victories sweeter and give your pitfalls a softer landing—as long as you’re working with a fair and trusted associate!
Factors to consider in choosing what kind of partnership to get into include
- your financial considerations,
- how much flexibility your partnership allows for decision making, and
- how much you trust your partners to make the right moves for your business.