If the freelance work is heating up and you’ve got more inquiries than time, you may be thinking about forming a partnership with a person in similar position. Like any big business move, starting a venture with a co-founder has its pros and cons, and it’s worth weighing these against one another to determine whether a partnership is right for you.
Here, we analyse all the benefits and drawbacks of saying farewell to the solo work life and linking up with someone else.
Pro – Two brains are better than one
It can get lonely as a self-employed worker, especially when you’re stuck for solutions and have nobody to turn to for guidance. When you’re engaged in a partnership, however, there’s always someone to consult for fresh ideas, emotional support, and feedback on tasks.
In business, it’s always beneficial to have a backup brain on-hand when one person – for whatever reason – isn’t firing on all cylinders. This way, your clients are never left disappointed.
Con – It’s not all up to you
A lone, self-employed business owner is free to make all the decisions themselves. If you wake up one morning and decide you’d like to spend a bulk of your budget on releasing a new advertisement, for example, you can do it right away.
In a partnership, though, you’ll need to consider their views before you act. Their line of thought may not necessarily align with yours.
Pro – Greater chance of success
More manpower means more available finance, more time to complete tasks, and more bases covered. Added funds lead to an increased number of business opportunities, and with a second person alongside you, you’re guaranteed to have a larger, enhanced client network.
Collaborating with a partner offers you a way to achieve your shared goals in a shorter timeframe, with a much higher chance of success overall.
Con – Smaller slice of the pie
100% of the profits (after tax of course) go straight to you when you’re operating on an individual basis. Not so in a partnership. Everything is split 50/50 (or what’s considered agreeable) meaning you’ll receive a substantially smaller slice of the money pie than you would alone.
The big question, however, is if you’d be able to rake in this kind of money without someone by your side…
Pro – Enjoyable working culture
Going into business with a friend who shares identical goals can make for a wonderful workplace culture. You’ll be in-tune with one another’s likes and dislikes, strengths and weaknesses, aims and ambitions.
Don’t overestimate this. A healthy working environment is essential for productivity and success in the long run.
Con – You may feel inclined to compromise
When you like the partner you’re working with, it’s tempting to cave into their suggestions, rather than trust your gut and fight the cause.
A partnership straddles two worlds – those of business and friendship. Sometimes it’s tricky to find a healthy middle ground where you can remain productive and pals in unison, regardless of the pressures you’re faced with.
If you do decide that a partnership is the right path to take on your business adventure, make sure a contract is fool-proof, and that you have an accountant at the ready to keep track of your finances. Bright Ideas specialise in contracting/freelancing accounting, and we can ensure your accounts remain organised and up-to-date – allowing you to focus on building a business with a co-founder. Get in touch today to learn more.
