Five Bad Reasons to Bring a Partner Into Your Business

If you operate a small business, it can be tempting to reach out and have a partner join you on your journey. There are some good reasons and situations where a partner can be beneficial. There are also some bad ones. Here are five bad reasons to bring a partner on board.

It will make you feel better. It sounds odd, but many people start a business or bring a partner into a business just for support. You can get support from a business organization or family, there’s usually little value in adding a partner just to have someone you can share daily successes or failures with.
You need financing. If your business is struggling financially, it is best to get to the core of the real problem. Adding a partner to inject cash may only serve to prolong the process. Unless that cash is used to upgrade or fundamentally improve the company, a partner may just bring added baggage and perhaps even stress.
You need help. If you need additional help at your company, hire someone or get help from a family member. Giving up part ownership of your company and perhaps even decision making power for additional labor is rarely a good idea.
You need expertise. Sure, having someone with knowledge of bookkeeping or advertising could be helpful, but bringing in a partner to get that expertise could be a mistake. Instead, hire a freelancer or seek advice by joining a local business group.
You feel you owe it to them. If you have a long-term, valuable employee or family member who has been a part of your company for a long period of time, it may be one thing. But this decision should not be taken lightly. It should only be done in a mature company that is on solid footing and is truly a reward for loyalty and service.

If you have a small business and have questions about business insurance, our team is here to help. We can help you find appropriate coverage at a price you can afford. Contact us today to get started!