what to consider when deciding on business partners vs going solo
Getting into a business partnership can be the best decision you will ever make, and it might also be the worst. Should you get a business partner for your juice bar? Of course there is no black and white answer to this question. There are however a few different questions and ideas you will want to consider when trying to reach an answer.
Personally I have run businesses with and without business partners and both have their advantages and disadvantages. It’s nice to be able to bounce ideas off a partner and think creatively in a space of collaboration.
Some people fall into the trap of thinking that they have to to have a business partner. I can see how this type of idea forms. People don’t want to feel like they’re in it all alone. It’s nice to have the support of another person to help deal with the inevitable challenges that will arise in the juice business.
In the same vein, partnerships can be a great way to build confidence. I’ve talked to many people who feel like they could never run a business on their own, but with a partner they would feel fine about it.
A Good Partnership Can Make Or Break Your Juice Bar
I always say that the two biggest reasons people’s juice bars fail is a bad location or a bad partnership. So if you do decide to get a business partner, what makes a bad partnership?
The number one mistake I see people make is getting a business partner that they could have hired. A lot of times people need someone to run the day to day operations at the store and they think they should become business partners with this person. Really, they simply need a general manager, not a partner. This might cause a situation where they have to bounce ideas and discuss strategies with a person who they wanted to execute their plan, not discuss strategy.
Two Types Of People You Do Want To Partner With
When choosing a good business partner, there are two types of people you do want to partner with. The first is a partner with whom the relationship transcends the business. This could be your wife or husband or a best friend for many years. What’s important is that your relationship goes deeper than simply business, so even if the business doesn’t work out, you will still have that relationship. These type of partnerships can be very powerful with the right person.
Outside of someone you know really well, you want to partner with someone who has a lot of business experience. Especially if this is your first business, having someone who understands how to run businesses or how to market things for example, is going to be a huge advantage.
Before diving into a partnership it is incredibly important to have clarity about your roles. You don’t want to get into a situation where you thought your partner was going to be doing all of the marketing for example, and they thought something completely different. Even if you know the person well, put everything in writing. It’s not so much that you are making a set in stone contractual agreement about company roles, it’s more so that there is no question what each person will be doing moving forward.
The Conversation That You Need To Have
Another important conversation to have with your partner before entering into an agreement is to have an idea of what will happen if the partnership dissolves. This can be an uncomfortable conversation, and many people will avoid it for that reason, but you absolutely need to have this conversation.
It’s almost like talking about the terms of a divorce before a marriage, who wants to do that right? The reality is that many businesses and partnerships fall apart. You never really know why a partnership might end. Maybe one of you decides to take your life in a different direction. Someone could get sick or even have to devote a lot of time to a sick loved one. You never really know, so put everything in writing regarding a separation. How will you divide assets? How will equity be split up in this event?
Honestly Is Vital
Within all aspects of life, and especially in business, honesty is vital. Be as honest and open as possible with your partner. What are your goals for the business? What are your goals for yourself? It’s better to find out that you and your potential partner have a completely different vision for the company before entering into an agreement, rather than three years down the line when you have huge amounts of time, energy and money invested.
As a lifelong entrepreneur I have learned that the more comfortable I become with having uncomfortable conversations, the easier they become.I tend to gain more value by finding things out I might not have if I avoided these conversations altogether.
If you’re looking to open and juice, but are feeling like you don’t know enough to get started I have an online course that is perfect for you. I give you all of the information you could ever need to be successful within this business model. I learned this stuff the hard way so your life can be easy.