Partnering with another entrepreneur means sharing ownership, responsibility, and trust. Should you find a partner? Is it better to partner with a friend? For some people, it is a “no” because they are afraid of losing their friendship because of money. For others, it is a “why not do business together?” This seems to keep the friendship one step ahead of the game. They may feel more comfortable working with someone they already know and trust.

It is difficult to say whether partnering is a good option depending on the business industry, financial situation, and many factors. Let’s ask some critical questions:

1. Is the business your idea or someone else’s? Do you have any business knowledge in this line of work or passion? Do they have the same goals as you?

2. What type of business do you have or want to create? Is this a product or service business? What responsibilities or licenses should both partners obtain? Who is responsible for obtaining the necessary documentation or licenses?

3. Do you need to partner with someone to run this business because you can’t afford to hire people or for financial reasons?

4. What association will you agree to be? 50/50? 60/40 or 70/30, etc.

5. The entrepreneur must understand that business is a long-term commitment. It is a long journey from start to harvest. What is the exit plan for a partner if necessary and how to reach an agreement?

6. Do you have the ability to manage this business?

These are some vital questions entrepreneurs should ask themselves before creating a partnership.

I have talked to many entrepreneurs and did some research. Here are some advantages and disadvantages of the partnership:

• Property:

Advantages: Pride of ownership, freedom from the control of others, the time invested will show higher performance, flexibility to make decisions.

Cons: You never know when you can put 40 or 80 hours in business this week. Having to compete with other companies. There is no guarantee of success.

If it is associated only for capital, an entrepreneur may think twice. Partnership mistakes are costly because a partner may not have business experience or may not be willing to invest the same amount of time.

• Control:

When it comes to partnering, many people immediately think 50/50, so everyone can have equal control. You should avoid this because “there are too many cooks in the kitchen.” There needs to be a person who can make the final decision. Research shows that it is better to form a 60/40 or 70/30 partnership. Every business needs a person who has overall control and responsibility. In this way, employees will not be confused by knowing who is the boss.

• Personality:

Pros: Different and more diverse characters can benefit in various tasks like finance, people, product, marketing management, etc.

Cons: Facing the same problems, but two people can react in different ways.

• Vision of the partners:

Advantages: It is best if you have a partner who has the same vision, passion and goal as yours.

Cons: partners often see the same product going in two different directions.

• A mix of generations:

Senior Partner – Lifetime experiences, knowledge, and more flexible work hours, but not a lot of energy and you may be considering retirement soon.

Younger partner: They are knowledgeable about new technologies and are full of energy. Eager to work, but lacking real-world work experiences or some specific skills needed. Less flexible work hours or no full commitment to work.

Think long and hard before inviting a partner to your dream!