Debating whether it’s time for a business partner? This article can help you weigh out 3 pros and 3 cons to running a photography business with a partner.
Con #1: Struggling a Part of the Process
If you get along smoothly with your future business partner, this is not an indicator that you will triumph; it is more probable you won’t. In each and every business partnership, you’re going to encounter conflict, anxiety, and debate. Business partnerships are a lot more similar to marriages in which you need to be able to get into a fight and come out of it using all the relationship intact and stronger for this.
Con #2: Multiple Remarks To Consider
Being in a business partnership means your time isn’t only your time anymore. It is currently dedicated to your spouses and business. You have to offer an honest contribution, equivalent to that of your partner(s). You finally must take into consideration what’s best for your venture and business.
Con #3: Longer Decision Making Process
The decision-making process is a clear aspect that transforms together with the inclusion of a new individual’s beliefs and opinions (particularly large conclusions ). Compromise is essential.
Pros #1: More People = Diverse Set Of Skills
Your partner is likely to arrive at the table with various abilities and experience only because they are not you. Having this diversity permits you to delegate jobs and focus on your talents and abilities.
Identify each individual’s strengths and weaknesses to help you determine areas of expertise that you each choose to concentrate on. By dividing the tasks based on interest and skill you make a synergistic impact. This will be better for your general quality of work output and efficiency of your business.
Pros #3: Companionship and Morale Boost
Going to a business on your own might be lonely. If you know yourself well enough, then you’ll immediately understand whether or not your character works best by yourself or with others supporting and helping you.
more pros and cons:
Advantages of a partnership include that:
- two heads (or more) are better than one
- your business is easy to establish and start-up costs are low
- more capital is available for the business
- you’ll have the greater borrowing capacity
- high-caliber employees can be made partners
- there is an opportunity for income splitting, an advantage of particular importance due to resultant tax savings
- partners’ business affairs are private
- there is limited external regulation
- it’s easy to change your legal structure later if circumstances change.
Disadvantages of a partnership include that:
- the liability of the partners for the debts of the business is unlimited
- each partner is ‘jointly and severally’ liable for the partnership’s debts; that is, each partner is liable for their share of the partnership debts as well as being liable for all the debts
- there is a risk of disagreements and friction among partners and management
- each partner is an agent of the partnership and is liable for actions by other partners
- if partners join or leave, you will probably have to value all the partnership assets and this can be costly.