PROS AND CONS OF PARTNERSHIP IN STARTUP

When it comes to partnership and considering the best and worst sided of it, then we have to agree that it is actually very debatable question whether you should for partnership or you should not. The thing is that it is very individual and depends on a lot of things rather than yourself. It depends on the personalities of partners and on some other circumstances. For a lot of people partnerships is the best option for variety of reasons such as investment, help, diversity of opinions. For some other people, on the other hand, partnership is not good at all. Now let’s understand what the advantages and disadvantages of partnership are.

Let’s start from the positive sides of partnership.

• First of all partnerships share the barrios, the problems. In this case there is someone you can share your problems with and you will understand that there is always someone who you can share with. Actually you are not the only one to solve the problems and that is a great relief.
• When there is a partner with you, you feel much secure and you are not so stress and frightened. The thing is that you are really courage because there is someone next to you who is facing exactly the same as you, and once you have this courage and there is no loneliness, then you will not feel bored.
• When it is a partnership, there is more knowledge and skills which is definitely good for business. The thing is that you and your partner are different people with different skills and knowledge and it is just great that there can be a lot of knowledge and you can think about business from different angles, use different skills and approaches.
• Diversity of opinions is another thing which is good for business. When you are the only one who thinks you think more often in just one way and you do not think widely. While in partnership there is someone who can have different opinion and it is just so great for business. This can help you to find alternatives you did not see before, or to find a more creative decision.

There is another set of reasons why you should not collaborate and make partnership. These are the most obvious and important disadvantages of partnership that can make you to give up the idea of partnership.

• One of the first disadvantages of partnership is that there can be some costs that will arise conflict between you and your partner. It is quite natural that there will be a lot of things you will not agree on, and this will be even worse when it comes to some spheres related to money.

• Sometimes you have to make faster decision while in case of cooperation, there is no spontaneity. You have to agree everything that you do with your  partner and it might take some time to discuss the issue, the opinions and then make the decision.

• Sometimes consensus is very hard to get. Even when it is not directly relate to money, you can have radically different opinions and that will only make things worse. You should be able to agree on something but consensus does not come easy.

• Different views about the amounts of investments can also lead to something not so pleasant in partnership. You and your partner may not agree about the investment and about the reward as well. All these things will destroy the partnership.

• Sometimes the partners have completely different objectives and aims about the company. For one partner it can be just something from side but nothing really important, for the other one the company may be very important. It can also happen that you just have different visions about the future of your company. This is when you should think whether it is right to continue the partnership or it is better to dissolve it.

• One of the worst disadvantages of any partnership is that partners have very less autonomy. The thing is that they have to share everything, and sometimes one is more dominant than the other one. Some people on the other hand are very power seeking and they cannot accept that they should also compromise. So lack of full autonomy is something which a lot of people don’t like about partnership.

• Another thing is that you employees may not be quite sure about who to listen to. When there is conflict in between two partners and they give different instructions, the employees do not know who to listen to and this brings an overlap in the functional aspect of your company, you may also start losing your employees because they cannot bear that kind of situation.

As you can see there are a lot of disadvantages as well in partnership. So what you should do is to understand which factors are more important in business for you and then only decide whether you are ready personally and professionally go into business or no.