To partner or not to be.

[Ramius75]

hi !!

Im currently thinking of starting a business and im in a dilemma to start it with a partnership or to go all out on my own.

having a partner has quite a few benefits including.
- 2 heads are better than 1
- pooling of resources and capital
- u start the business with 2 ppl instead of 1, meaning faster growth
- having a partner will mean greater responsibility, hence not so easy to give up

but some veteren businessmen are giving me alternate advises and most tell me to start the business alone. hence sole proprietary.
Some cons of having a partner is
- it might get ugly
- loss of friendship
- loss of trust
etc etc

So i like to seek some advises from the forumers here. Will welcome all sorts of suggestion related to how to start a business. thanks in advance

 

[Fifty]

I guess it depends a lot on the size of the business. A hotdog stand? just you is probably fine. A 450 million dollar hotel-casino-resort? Get a partner or two.

 

[skadistic]

Do it your self. Partners can ruin your credit and company. If you fail by your self its your fault. If they fail it isn't but you still fail anyway.

 

[Ramius75]

I guess it depends a lot on the size of the business. A hotdog stand? just you is probably fine. A 450 million dollar hotel-casino-resort? Get a partner or two.

im thinking of a trading company. Intially was thinking of 100k per pax to a maximum of 200k. which i think is a comfortable operating margin. but alot of old businessmen told me i can do it with a lot less. Start small they all said.

@skadistic- indeed, this is 1 of the main risk they warned me about.
there are 2 partners in thinking of getting actually.
Mr A - very rich, jobless stock trader with a master in banking in finance.
Mr B - My peer in university. we have about the same capital and same mindset. Classic mirror image...

 

[EconomistBR]

Get a partner, sign a contract with everything on it to avoid surprises.

The contract must include terms under which the partnership is dissolved, terms under which the partner pays a fine to the other, terms that spell out what's allowed and what is not.

 

[Ramius75]

Get a partner, sign a contract with everything on it to avoid surprises.

The contract must include terms under which the partnership is dissolved, terms under which the partner pays a fine to the other, terms that spell out what's allowed and what is not.

its a great idea.

but whats ur stand of getting a partner beside the pro i mention ?

 

[downtown]

Well, I guess if you have all the capital you need, and you're willing to assume all of the risk, then you don't *need* a partner. How much do you trust these guys?

 

[Elrohir]

If you have all the capital you need, then go it alone. If you need more....well, you don't have much choice then, either find a partner or don't have a business.

 

[EconomistBR]

its a great idea.

but whats ur stand of getting a partner beside the pro i mention ?

Like Fifty said, how much capital will be needed?

I am sure you know this: Most start-up companies go bankrupt, for various reasons. So don't put all your savings into 1 business, a partner is important because he helps share those risks.

Like Fifty said if it's a hot-dog stand, there is no need to get a partner.

 

[EconomistBR]

Well, I guess if you have all the capital you need, and you're willing to assume all of the risk, then you don't *need* a partner. How much do you trust these guys?

There's no such thing as trust. There is a well written contract and a poorly written one.

 

[Ramius75]

Like Fifty said, how much capital will be needed?

I am sure you know this: Most start-up companies go bankrupt, for various reasons. So don't put all your savings into 1 business, a partner is important because he helps share those risks.

Like Fifty said if it's a hot-dog stand, there is no need to get a partner.

yup, its one of my concern also of coz. losing 100k in a business is not laughing matter also.

Im starting a trading business mostly with importing and distributing building/renovating materials. So i think having a large capital might help.

but many told me to start small and said 100k is more than enough.

 

[stormbind]

Are you a visionary? Could your vision clash with that of partners'?

 

[Babbler]

In making major life choices, never consult the OT, I realized, for what tells you has no correlation to reality.

 

[EdwardTking]

Ask yourself, what happens when (not if) you go sick?
before you go solo.

Ask yourself, what happens when (not if) we don't agree?
before you partner.

 

[Ramius75]

Are you a visionary? Could your vision clash with that of partners'?

ya, i probably could. but clashes are inevitable, its how 1 decide to handle it

In making major life choices, never consult the OT, I realized, for what tells you has no correlation to reality.

well, but i think its a good idea to get more opinion, especially ppl around the world. I know there are some businessmen and business admin forumer also. so i tot of asking.

Ask yourself, what happens when (not if) you go sick?
before you go solo.

Ask yourself, what happens when (not if) we don't agree?
before you partner.

its a good point! ya, got to have some contingency if i fall sick also...

i think im going to interview the potential partners also, time to reveal the plan to them also.

 

[Shadylookin]

a good rule of thumb is never do business with friends or family, and never partner with someone that has less to lose than you do.

 

[Ramius75]

a good rule of thumb is never do business with friends or family, and never partner with someone that has less to lose than you do.

thanks, noted.

 

[AL_DA_GREAT]

A partner is a gamble. To start a really succesfull buisness you need a partner, but if you have a partner you are more likly to fail.

 

[JohnRM]

hi !!

Im currently thinking of starting a business and im in a dilemma to start it with a partnership or to go all out on my own.

having a partner has quite a few benefits including.
- 2 heads are better than 1
- pooling of resources and capital
- u start the business with 2 ppl instead of 1, meaning faster growth
- having a partner will mean greater responsibility, hence not so easy to give up

but some veteren businessmen are giving me alternate advises and most tell me to start the business alone. hence sole proprietary.
Some cons of having a partner is
- it might get ugly
- loss of friendship
- loss of trust
etc etc

So i like to seek some advises from the forumers here. Will welcome all sorts of suggestion related to how to start a business. thanks in advance

A few bits of advice;

1) Don't take advice from people who've never owned and operated a business before, or at least who've never worked in the upper tier of management.

2) START SMALL. If someone calls you a horse, feel free to punch them in the face, but by the third time, it may be wise to buy a saddle. You have a lot of people telling you to start small, because you're inexperienced and/or because this is your first business. Listen to them, please.

3) Don't spend what you don't have. If you can't go into your business without being able to absorb it as a complete failure and take the loss, then don't do it. Don't risk your house and other properties for this, unless you're experienced and sure of your investment.

4) Educate yourself. Don't rely on others whom you think are smarter than you to make sure that this business runs right. You might be right, they are smarter than you, but it is highly doubtful that they care about it nearly as much as you should. After you have things running and you branch out with other business, investments, and other things, then you can hire a team of smart people to run it for you, while you spend the money. Until then, while this is all that you have, spare no expense of time and effort in educating yourself.

5) Research the business. For Pete's sake, don't just dream up a business and think to yourself that it sounds good and will succeed. Do the research. Think about your customer base; their income, spending habits (which can be seen based on the other businesses in the area), etc. Take a long, hard look at your competition. How are they doing? Well? Poor? Why?


If you're going to do this, do it right. Good luck!

 

[JZ_UK]

If this business law lark has taught me anything its don't go into partnership with anyone you don't know inside out and for the love of cookies and miniature piglets get a written agreement of whats supposed to happen in the partnership before you start!