If you’re starting your own business, you may be unsure whether to pursue your ideas independently or together with a partner or team.
In today’s article, we’ll consider the pros and cons of going it alone or forming a business partnership.
Harmony or conflict?
One big argument against starting a business with a partner is that you’re not the only one in charge. Many freelancers opt for self-employment because they want independence. When you set up a business with a partner, you’re both involved: it’s like raising a child together and each of you has a say. In most cases, there will be an equal balance of power and each partner will have a 50% share. However, this balance can lead to disagreements or conflicts and such problems can easily cause a newly-founded company to go under. So it’s a good idea to get to know your future partner well before setting up in business together. It also makes sense to set clear goals and boundaries right from the start.
As a solo show setting up on your own, you won’t have this problem. If there’s something you don’t like, then it’s up to you to change it. If you’re not on the same wavelength as one of your clients, just look for a new one.
Recognizing your responsibilities
As a lone warrior, it’s clear that you bear all the responsibility. You’re the decision-maker and the executive body. But this also means you have to handle everything on your own and are the only one accountable. From planning and founding your company, to finding new customers and completing projects: everything depends on you. This can have a negative impact, especially if you are ill or feel you need a break: on days when you can’t work, you won’t make any money.
With a friend at your side, you can balance things out. As the saying goes: a problem shared is a problem halved. In a business partnership, you will set up your company with other people. As a team, you can support each other and complement each other’s skills. You can share responsibilities, work on assignments together and simultaneously provide services to multiple clients. You are working towards the same goal and investing your energy, ambition and funds into starting up a business together. Even when times are hard, you know that you can rely on your partner and pull through together. In a partnership, responsibility lies in several hands.
To sum up, having a business partner has both advantages and disadvantages. On the one hand, your partner can provide support and add to your own strengths. On the other, you are no longer the only decision maker, which can potentially lead to conflicts. It’s important to think carefully before entering into a partnership. If you decide to go it alone, you also need to be aware of your responsibilities. If you’re trying to decide between a partnership and setting up independently, make sure you really get to know your potential partner. This will help you to figure out before you start whether a business relationship makes sense for you.
Working as a freelancer: how to calculate your hourly rate
As a freelancer, you’re responsible for determining your own hourly or daily rate. Over time, you will be able to increase your how much you charge. But what criteria should you use to calculate your fees?
Don’t miss our next article in the ‘Working as a freelancer’ series on Friday, 20 September 2019. We’ll look at different factors to consider when calculating your hourly rate.