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<\/a><\/p>\nTable of Contents<\/strong><\/p>\n <\/a> <\/p>\n A partnership business is formed when two or more people join their resources to start a business and agree to share profits, losses, and risks. Real estate investments, law firms, and physician groups are some of the most common examples.<\/p>\n Partnerships can take different legal forms, including general, limited, and limited liability partnerships. I will discuss each in detail later.<\/p>\n Partners create a written legal agreement outlining roles, responsibilities, and decision-making processes. Partnerships can end for many reasons, like a partner leaving, the agreement expiring, or other business changes.<\/p>\n <\/a> <\/p>\n Before I dive into the different types of partnerships, I thought I\u2019d put together a list of the top advantages of these businesses based on my experiences and observations.<\/p>\n It\u2019s tough to run a business. But you know what\u2019s even harder? Doing it alone.<\/p>\n Neither Kasia nor I know everything (no one does) \u2014 we each have our own strengths and weaknesses. Partnering with someone who has complementary skills and knowledge helps fill gaps and expand your expertise.<\/p>\n Google is a great example of how forming a partnership business can result in spectacular success. Its founders, Larry Page and Sergey Brin, met at Stanford University, where they developed a search algorithm that became the foundation of Google. Their complementary skills \u2014 Page\u2019s vision for structuring the web and Brin\u2019s expertise in data mining \u2014 helped them build a company that transformed the internet.<\/p>\n The secret lies in choosing someone who not only has the right skills and expertise but who you also work well with. Otherwise, you might experience conflicts.<\/p>\n The right business partner can also create a business plan<\/a> with you. If you need help getting started, here are a few business plan templates<\/a> that will guide you in this process. You can access them as an interactive one-page PDF or get the full template on both Google Docs and Microsoft Word.<\/p>\n The major downside of being an entrepreneur is the long hours you have to put in, which can lead to burnout. In fact, over 34% of entrepreneurs experience it,<\/a> and nearly 46% struggle with constant stress \u2014 the threat is real.<\/p>\n Recently, I saw a post<\/a> from one of Surfer\u2019s<\/a> founders saying they\u2019re taking a sabbatical to recharge after working long hours for years, which impacted their mental well-being.<\/p>\n Since the company has multiple founders, one taking a break won\u2019t hurt the business.<\/p>\n When you team up with the right person (or people), you can count on their support, and that\u2019s just one of the benefits. Experienced partners bring ideas and contacts you might not have access to, which can (or at least should) lead to further business growth.<\/p>\n This benefit might apply to you if, until now, you\u2019ve been working as a solopreneur. Joining forces with a business partner (or a few) can let you see things from a different angle. Since they have their own experiences, they can notice certain business opportunities hidden in plain sight. Or, as I\u2019ve personally seen, they can come up with solutions to problems you\u2019ve been struggling with almost instantaneously.<\/p>\n This is what happened when I worked at a startup about a decade ago. Originally, the business had just one owner, and I was part of a team of three. We were building a digital product for retailers, as well as food and cosmetics manufacturers. However, while we had knowledge on the sector, we were struggling with convincing decision makers at these companies to meet us for a product demo.<\/p>\n Things changed when our boss decided to join forces with a business partner. Not only did he have a lot of contacts at retail and consumer goods brands. He also pointed out where we were falling short in our attempts to convince our target customers of our solution\u2019s potential ROI.<\/p>\n Lo and behold, we were suddenly able to get through to the right people and present our solution. I\u2019d like to underline that we had success not only because the Co-CEO would call in a personal favor \u2014 his perspective and insights helped us improve our pitch and reach new leads.<\/p>\n In my experience, whenever the topic of money comes up in the context of a partnership business, it\u2019s usually about sharing profits. In fact, a few people whom I spoke to were tentative about setting up a business with someone else for this exact reason.<\/p>\n What they don\u2019t always think of straight away though, is that they also share expenses. So, for instance, instead of paying $250 per month for an essential tool like a CRM, they might be paying just half of that amount if they have a partner.<\/p>\n This distribution of costs can accelerate business development, as it\u2019s more affordable for everyone to make investments. So, while you share earnings with others, working together means you have more resources to grow your business.<\/p>\n\n
What is a partnership business?<\/strong><\/h2>\n
Benefits of Partnership Businesses<\/strong><\/h2>\n
Doubling Down on the Knowledge and Expertise<\/h3>\n
More Business Opportunities and Extra Support<\/h3>\n
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<\/p>\nFresh Perspective<\/h3>\n
Smaller Relative Costs<\/h3>\n