There might come a time in your life when your small business starts to expand rapidly; and in order to grow and survive, you will need to think about adding on a partner.
You should be able to recognize the signs, so that you can find the right partner at the right time.
You Have Peaked Physically and Financially
If you feel that you are working too hard and that it is physically not possible to put in any more effort into your business, then you know that you need someone to help share the load.
Financially, if you can’t manage to invest any more money in spite of your business success, then it could be time to inject some outside capital into your small business.
You Need Some Expertise
If you feel that you need some additional expertise in running your business, then you could scout for a suitable partner with the required skills. You may be able to utilize their skills in a specific business area, in exchange for a share in the profits.
If you are planning to venture into unchartered territory, then you will definitely need someone with experience in that field.
You Want To Expand
If you find that you want to expand your business, then you will need not only capital, but also another partner who is capable of taking over the new management duties.
Your new partner can take care of the new business, while you continue to manage the existing one, thus helping you to spread your wings.
If you have been eying a running business that is up for sale but are unable to buy it for yourself, then perhaps you should consider taking on a partner who is willing to put up some money.
Picking up a partner who can not only buy the business, but also help in running it could be a great opportunity for both of you to join forces to be successful.
You Plan To Exit from the Business In The Near Future
If you have plans to sell your business for any reason, it would be a good idea to pick up a partner, teach him or her the ropes of your business and then transfer your shares when you exit the partnership.
This will ensure that your clients get used to dealing with your partner while you are still in the business. This benefits you partner as well, as they will be ready to run the show on their own once you have made your exit.
You Are Nearing Retirement Age
If age is catching up with you and you do not suddenly want to sell your business, then taking on a partner will ensure that the baton is carried forward once you have retired from the partnership.
In this case, you can act as a mentor and guide to your partner until he or she gets the hang of running the business. Don’t discount the idea of taking on someone much younger; often, a young partner can also bring in fresh, new ideas.
Taking on a partner has many advantages. The key is to recognize the signs that it’s time to get some much-needed help.