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Why Business Partnership Isn’t Better Than a Sole Proprietorship

Starting off one’s business is never an easy thing. It necessitates a lot of experience, patience and most importantly, funds. An enterprise isn’t merely a game of luck; it is more of a battle of compound strategies and ideas. A thorough study is needful for finding a good business location, outstanding concept, the right choice of workers, and smooth flow of systems. Sounds excellent but complicated, right? It’s likely to be complex when you don’t absolutely understand what you are into. It’s the reason why most entrepreneurs find partners in establishing a business. The only clear thing certain for them is the purpose of gaining profit.

Considering having partners is desirable in business but having yourself as the only owner is much plummier. As long as you have enough money to finance and sustain your proposed business, why really bother in seeking associates?

Here are the major aspects why having business partners is not a better choice:

Profit to be Earned Decreases

If you completely entrust your income to partnership business alone, sad to say that having partners will not give you the 100% profit earned for the day. A partnership will always be a division of labor, liabilities, and income. Unless you have a big company, most likely your net worth is going to do well for you.

Countless Arguments

Working with associates, it is always possible that unexpected misunderstandings come your way. Your ideas may not come as one simply because each one of you has various views of perspectives. It may occur that your suggested ideas won’t be chosen by your partners. However, if you think you got the considerate partners, you’re lucky enough. But the sole proprietorship guarantees that all your decisions for the good of your business will be implemented and it really seems great.

Possibility of Being Deceived

If you’re not just as sensible as an experienced businessman, the chances of getting cheated are high. In fact, many cases of swindling have come rising nowadays. Swindlers can smartly pretend they are into a business, propose marketing plans and let you deposit an amount of money. After they have gotten a large amount; they will make an escape and not dare to show off their faces to you again. When you are certainly not sure about what business to do due to lack of knowledge and experience, talk to those who have at least excelled in business for many years.

Do not rush in making your own enterprise, take some time to settle yourself.

You will not Enjoy Time Freedom

The main reason why some people put up their business is to gain independence by managing and enjoying their own time. The moment you engaged with business partners, they will tell you what to do, when to finish this and that. If you’re not the type of person who likes this, simply put off the idea of a partnership business. It cannot be denied that there are those people who dominate others despite being “equal”
in status and position.

Going on Your Own Way

Venturing in the field of entrepreneurship is the grandest thing you could ever do in your entire life. After striving to finish college or having saved fund for business, you are now ready to take off. I’m sure you don’t want to lose all those hard-earned money, so prefer to do things you’ve planned slowly. Buy books that talk about details of business start-ups or read blogs. Meanwhile, ease your mind, unwind yourself, and get ready to go on your own way!

Written By

Kathleen Tan is a writer and editor of Aside from writing, she also loves to travel with best friend, cook Chinese cuisines, and read fiction books. She also owns a shop and loves investing in the stock market and other companies.

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