Should you start a business on your own?

Entering into the world of business is an exciting and invigorating challenge. From the creative design and marketing of your new brand, the curation of stock right through to the adoption of business management software, every step is one closer to dreams realised and success to come.

However, when envisioning your business up and running, successful and thriving, the real question is has this been the work of your hand, or have you been operating within a fruitful partnership or team? Starting a new business solo can be daunting but there is plenty of upside as well. The same can be said when working within a partnership – entering the trenches alongside the best and brightest can be source of comfort and help drive motivation.

So is sole proprietorship the way forward for you or is a dynamic duo more appealing? We have listed the benefits and drawbacks of each for your consideration before taking the plunge and starting your business journey.

 

Is going solo the way for you? Photo by Tim Mossholder on Unsplash

Benefits of starting a business solo

Follow your own vision

When you are the sole owner of a business you will be free to execute as you see fit and  your vision will not be challenged. While it is always wise to seek out advice from trusted colleagues or experts in the field, ultimately the way you envision your business and how it operates will be entirely up to you. 

Create your own flexibility

While work will be driven by the need for profit or success, if you are a sole proprietor you will be able to set your own hours and work to your own deadlines. You will also be able to allocate time to the work you feel is most relevant or important and concentrate your efforts here without judgement or a difference of opinion from others.

Reduce process and admin

Ever worked for a large company where the sign off process involves ten or more people, weeks of back and forth and forever re-circulating emails? Forget all of that if you are going solo! Reduced approval processes means time saved and significantly less admin, making for a much more efficient and productive use of effort.

You can fill the gaps

If you are considering entering a partnership to help take on aspects of your business that are not your strong suit, an alternative may be to engage the services of another business that maintains their own identity separate to yours. Examples of this include hiring a business whose expertise are Marketing or Sales to work for you, not necessarily with you.

Drawbacks of starting a business solo

Higher upfront costs

Starting a business solo will likely mean less capital to begin with than if you were to work in a team or partnership where costs can be shared or the initial investment can be greater. You are also going to have to commit more of your own time to complete the required work which can become another significant cost.

The onus is on you

When things get a little tough or messy and you are operating as a sole proprietor, you will find the buck really starts and ends with you.  Although you can certainly find others to lean upon for advice or guidance, ultimately the success or failure of your business will sit squarely upon your shoulders which can be a daunting and perhaps off-putting reality for many people. It is important to maintain motivation to ensure continued success.

 

Is having a business partner more your style? Photo by krakenimages on Unsplash

Benefits of starting a business in partnership

Shared/decreased risk

One of the key benefits of entering business with others is the shared or decreased risk that comes alongside it. With a partnership or group investment, you are immediately going to be able to either increase your capital investment into the business to assist with upfront costs or reduce the cost across the board to buy-in. All future expenditures will also be shared, reducing your stake or risk in the business. 

Ability to focus on strengths

When a business has multiple owners the start-up work can be spread among the team to best suit each individual’s strengths. Rather than take on all the Marketing, Sales and Operations hats, the different functions can be assigned to a specific person who has the most experience in the field. This also helps define ownership of the work which will help build accountability.

Increased efficiency

More hands on deck simply means a greater amount of work can be done in a shorter period of time. Issues that arise can also be dealt with concurrently rather than one after the other. You will work faster which will ultimately lead to a shorter lead time to the business becoming operational and profitable.

Drawbacks of starting a business in partnership

Profit is shared

An obvious drawback when entering a partnership is that any and all profit will need to be shared. For many entering business for the first time it can be a long build-up to the point a significant wage can be drawn and having to share this with others has the potential to drag this out even longer.

Majority rules

Following your own vision is easy when going at it alone. In a partnership – not so much. Different opinions will inevitably rise and the reality is your way will not always be the only way, and having conflict resolution tools at hand will be very important. Having said this, having different viewpoints is not always a bad thing – as a collective, you may find your business partners are able to think in ways you may not have – but if your dream is a specific one, having others involved in the decision-making may be problematic. 

Vague duties/ownership

If not carefully outlined from the beginning, vague assignments and accountabilities have the ability to cause tension within the team. Alignment of accountabilities and expectations early in the piece is key to avoid potential fall-out or certain team members taking on more than their fair share of work.

Deciding whether to go solo can be an easy decision or a tough one. For many budding entrepreneurs being the sole proprietor is the most appealing part of becoming a business owner, however, there are plenty of benefits – financial and otherwise – to taking on a partner as well.