5 key benefits to going into business with a partner

Throughout my more than two-decade career as an entrepreneur, I’ve entered into several business partnerships. Some were fruitful. I’ve established partnerships for various reasons — to obtain skills and learn, participate in an existing business venture, promote a diverse set of offerings, and to have someone to collaborate with on what otherwise can be a lonely journey.

Because of my experience with partnerships and as a coach specializing in business relationships and collaboration, I can say with certainty that a partnership is one of the best ways to go into business. With the right partner and a strong foundation of trust and communication you bring about, your business endeavors will have huge potential.

What I do believe is that a collaborative partnership is the best way to go into business, given the right partner and establishing a strong foundation of trust and communication.

Starting a business is a major investment, both in terms of financial risk and emotional strain. Going it alone means having to juggle everything. There are countless tasks involved in setting up and running a business. They run the gamut from marketing strategy and execution, sales, to accounting, budgeting, and so on. Then there's the work of providing the services and products, which take up the bulk of your time in the business.?

Having a business partner is like having a companion that brings the kinds of benefits solo business owners find hard to access. That's especially true if you have limited financial resources. A harmonious, well-founded partnership, however, can create a business that’s greater than the sum of the owners.

Adding a partner may feel initially like you’re doubling the load and stress. But if you find someone who’s a good fit and is strong in areas that you know need shoring up, your business could reach the kind of success you imagined only in your dreams.

Here are five reasons to consider a partnership versus going or staying solo.

1. Two heads are better than one

You've heard that well-worn maxim "two heads are better than one." It’s true: If you find a partner where working together is enjoyable and as well as productive, you’ll get better outcomes than going it alone. Everyone needs support from time to time, and who better to have in your corner than someone who is just as invested in the business as you are?

You'll each have different perspectives, skills, and ideas. By supporting the other, each approaches the tasks of running the business more creatively, effectively, and resourcefully.

You’ll also benefit from motivation and accountability, two personal traits many solo business owners struggle with. You and your partner will be mutually responsible for contributing to the success of the business and achieving common goals.?

2. Sharing the risks and the rewards

There’s a lot of risk to being in business for yourself, starting with the financial investment. There’s also the risk of a major life obstacle getting in the way of running the business and you making a living. Having another person running the business with you means sharing various functions in running the business and shared financial investment.

Joining forces with someone else helps keep the business going. If one co-owner has to slow down or take a break to deal with outside issues, the other owner can take on extra tasks to meet the needs of clients that, if you were solo, might otherwise have been overlooked.

Partnering builds credibility within the marketplace. When customers, suppliers, and others in the industry know your business has two or more founders, it gives them more confidence to do business with your firm than if you were going it alone.

Working together you’ll both be rewarded with greater profitability than if you had each run your businesses independently. This is because partners can typically invest more money, take advantage of their combined strengths, join forces to make decisions, and be accountable to each other for achieving business goals.

3. Combine your strengths to grow innovation

Joining forces also means combining strengths and expertise. Together you may be more likely to create offerings that are innovative or even breakthrough. Combine your strengths to provide products and services that neither of you could offer on your own.?

Even when you both work in the same profession you likely have skillsets, talents, and different points of view. When you and your partner play off each other's skills and knowledge, you’ll create valuable solutions for clients that are practical, useful, and provide a hedge against your competition.

4. It's less lonely with a partner

According to a study cited in CEO Today, 73% of small-to-medium business owners admit to feeling lonely when they own their business outright.

Aside from shouldering all the risks, the solo owner must make all the decisions and often wear many different hats. Some of those hats will be a poor fit.

You fixate on tasks you enjoy most, while other tasks will go undone or be poorly executed. With a partner to help you in the business, you divide the major roles by your strengths and ensure that those tasks get done, and that they are done well.

Having a co-owner lets you share the emotional burden of running a business. It will reduce your stress level, and greatly minimize the feeling of isolation that arises when you’re on your own and need to do everything yourself.?

5. Gain the benefits of buying into an established business

If you want to be in business but don’t want to spend time building it, consider joining an established business as a co-owner.

Some business founders are ready to take on a partner. By joining an ongoing business, you gain all the benefits of being in a partnership. There’s a built-in steady stream of clients, plus the wisdom and experience of a veteran in your field that complements the talents you bring to the business.

Having a business partner can substantially improve the trajectory of your business building efforts. You'll be more innovative, it’s easier to scale, and you'll be more competitive.?