Personally i will always advise to start on your own first before you take the decision to share ownership with someone. My reasoning is also backed up by the experience. I witnessed so many conflicts between shareholders or partners ever since my practise. Companies have been dissolved as a result.
Business is not easy, whether you have partners or alone. There are many things that you learn along the way as you start being operational and some lessons are just painful to experience or even scarier before you start, this might be the reason you want to start with someone because your thinking will be that it is better when you share the pain or you thinking it is safe. But i think it is even more complex when you have partners. Therefore get experience first before you want to partner with anyone in your business. Learn how to manage your emotions first, learn independency, decision making, learn how to manage business relationships, learn the nature of your business in operation, learn the type of partners in business and choose the better one that will work for both of you.
LEARN BUSINESS FIRST.
Since my practise i have and still amend companies as a result of relationships gone bad between business partners. Some is even before the company start being operational.
The thing is, things always looks easier in theory than in practise.The planning does sound simple and accommodating but seem different in the execution and unfortunately this is learned during the business most of the times, this is where the conflict arises in most cases. I really think the most painful thing is having to realise that you and your partner do not share the same vision of the business or life in general and this could have be avoided if you had given yourself some chance to learn few things before you look for partners. Things like their characters, their spending habit, their interests, etc. Sharing the same passion does not automatically makes you good partners.
I always compare the shareholding or partnering in companies with marriage. It doesn’t matter how long you have known your partner for, because as soon as you get married to each other there are new things you will discover about one another now that you are closer to each other, i have heard this many times. Suddenly there are adjustments in your life, there is more you need to share, things like your whereabouts, financial decision about your ‘own money’, etc.This are things that you were never used to do before. You will always have to consult with your significant other before some decision making. Now to me for the marriage to succeed is you must be ready mentally, physically and emotionally to be able to fulfill what is expected in the companionship. Get your mind ready because if not this will be the cause of the break-up (divorce), of which i never heard of a “beautiful break-up” so therefore this will always cost you many things.
In this i also advise that when you have started trading on your own and ready to partner please leave your principal business alone, it is better if you start a new entity that will accommodate the partnership. Protect your already existing business. This is in case the partnership does not work then you don’t loose the company that you have worked hard for on your own.
I am not saying you must anticipate partnering failure but what i am saying is this things happen, i see them at my disposal almost everyday. You can only use your existing company only if the factors around partnering forced you to but you will also have partnering terms in place.
And also not all new partnerships fails and the reason could be that there were more correct measures taken in consideration in the formation of the partnership. There are more technicalities in running a Business, do not form partnerships because we are just too excited.
By Dikeledi Seoloane on behalf of MATSOBANEMETJA BUSINESS CONSULTING – Coaching Division.
Facebook Page: MATSOBANEMETJA BUSINESS CONSULTING
________________________________________________________________
Matsobanemetja Business Consulting Pty Ltd 