The benefits of a business partnership
We are firm believers that two heads are better than one. The responsibilities of running a business can quickly become overwhelming for one person but sharing this weight in a trusted business partnership lightens the load.
It’s understandable that some people may be wary of allowing other people in on important decisions. How do you know if you can rely on them? You’ve heard enough partnership-gone-wrong stories that your concerns are more than justifiable. But, the benefits of having a business partner are so massive we wouldn’t want you to miss out. Here is why having a business partnership might be the best choice for you.
Great minds don’t think alike
When it comes to brainstorming and combining skills and knowledge, a partnership is invaluable. If your business is a small start-up, having a second opinion and a second set of ideas will give you the edge you need to get above your competitors. You and your business partner can bounce off each other. If one of you suggests an idea, the other finds ways to improve it. You’ll end up going back and forth like this until you come up with a perfected business idea that is going to drive profits and growth.
Combining the skills of two or more people provides the diversity in the expertise needed to have a broader scope for achievement. For example, you could have fantastic people skills, unmatched by your partner. As a result, your networking abilities and capacity to draw in new customers is a cut above the rest. Meanwhile, your partner refrains from networking but uses their expertise in marketing to promote the business in ways that you can’t. The combination of both your skills means you cover more areas for business improvement and you reap double the benefits.
Having a business partnership is not only great for generating new ideas, but there are substantial economic benefits to teamwork. If you are working as a sole trader, this might seem better than setting up a limited company at first. All you have to do is inform HMRC that you are self-employed, report your taxes through self-assessment, and you’re sorted. But, as a sole trader, if your business goes bankrupt, so do you. It puts assets, like your house and cars, at risk.
Setting up a limited company means that your assets are legally separate from your business assets. Becoming a limited company may seem more complicated, but having a partner makes the whole process more straightforward, not to mention a lot more cost-effective. You have more funding as there are two of you. You are likely to pay less tax when there are two owners than when you were a sole trader, and it’s easier to secure financing as investors can see your company is separate from you.
There are millions of business partner success stories out there, and you could be one of them. No matter what business you run, Big Hand is here to provide all the advice and support you need. We will even take care of your company’s accounting so that you don’t have to worry. Get in touch with us today on 0161 327 2911.