One of the common roadblocks on the highway to entrepreneurship is the realization that one person may not be able to do everything themselves. I have faced this roadblock myself as I have grown multiple businesses and I want to share with you how partnerships can help you either smash through this roadblock or, at the very least, deftly move around it so you can keep moving forward with your business goals and dreams.Business partners can come in a variety of shapes and sizes and here's the best part. Not all of them are going to want a share of the profits or be joined at the proverbial hip with you as your
business ascends to heights you've only dreamed of before. This common misconception is what I feel keeps more entrepreneurs from taking the next step and really seeing where their business ideas can take them. It's a natural thing to want to protect you business interests but, if your protective instincts come with the expense of limiting what your business can do, then the situation backfires.
There are several types of partners that I would like to discuss. The first is what I like to call a professional team partner. These partners are only so in an academic sense. Your association with them helps move things along and helps fill voids in what you are able to do yourself but they don't otherwise have any formal interest in your company's pursuits. Examples of these types of partners are accountants, bookkeepers, assistants (real or virtual), and the list could go on and on. As you can see, these types of partners may or may not be actual staff members, but they all "partner" with you to help you reach your business goals.
The second type of partner is a financial partner. A financial partner helps capitalize your business so you can reach particular growth milestones or simply satisfy a foundational need for funding. Unlike a professional team partner, a financial partner will have more of an active interest in your business but that is not necessarily a disadvantage. You need them and they need you so, as long as everybody comes out ahead, the situation is a positive one.
Not all financial partners will ask for a stake in the company and thus a share of the future profitability. Some will simply ask for an agreed return on their investment in a set period of time and then be out of the picture. However you choose to arrange a financial partnership, just be sure to consider all of your options and make choice that most benefits your company.
The last type of partnership is what I call an active partnership. Many partnerships are set up this way from the outset and, plain and simple, involve more than one individual who is actively involved in the business's day to day operations. Naturally, active partnerships will involve shared profits and also agreement on key decisions for the business's growth and development. For a new entrepreneur who is currently operating alone, entering into an active partnership can be both risky and threatening and should only be considered if a prospective partner has something of significance to add to the equation.
Overall, partnerships can help your business grow in many ways and, as your new business grows and develops, it behooves you to consider whatever kinds of partnerships may be necessary to turn your dreams into reality.
