If you are a new franchise owner, you may be wondering if you need to bring another person onboard to run the business with you. Whether you go solo or get a business partner, both have their own advantages and disadvantages. In this post, we will give a quick summary of the pros and cons for each option to help you make the right choice.
Going solo: A lot of control….but zero support
Pros:
When you are operating a franchise on your own, you will have complete control over every aspect of the business, including finances, taxes, income distributions, etc. Flying solo gives you the freedom and independence to make all the decisions.
Cons:
One of the disadvantages of sole franchise ownership is that you are at higher risk of making mistakes than when you have a partner (as they say, two heads are better than one). Running a franchise requires a lot of time, and you may need to spend at least the first few months trying to get the business up and running.
As a sole owner, the pressure will be entirely on you, and you will have limited finances to fall back on if you incur unexpected expenses along the way. In addition, it may be difficult to have free time for vacation and to take time off the business when you don’t have a partner to run it while you are not around.
Getting a Partner: Collaboration….but compromise is needed
Pros:
If you have a business partner, both of you can create a team where each individual uses their various skills and strengths. When you have someone running the franchise with you, you won’t have to carry the responsibilities alone, and you have a person with whom you can share your ideas.
Getting a partner also give franchise owners the chance to bring in a person who is visionary and excellent at expanding a business, while the other person is good at operating a business, doing the accounting work, and ensuring the bills are paid when due. As such, having a partner can make you business more flexible and versatile.
Plus, having a partner will enable you to divide the jobs and the initial investment costs between yourselves. It will also give the chance to share the responsibilities, and when one partner needs some time away from the business, the other partner can take the reins. This can be a great option in case where one of the franchise owners has family responsibilities to handle.
Cons:
The downside of having a partner is that you will need to share everything with the other person, including the profit the company makes. There’s also a risk of fallouts, and if the two you do not agree, it could spell doom for the business.
Communication is also important. As a solo owner, you make all the decisions independently, so you don’t have to bother about talking to the other person and whether they are on the same page with you.
Before choosing a partner for your franchise business, you have to consider their personality. Are you going to be able to get along with them? Will they drive you nuts after a period of time working together? Do they seem like someone who will become unfriendly and irritated when tired and be unable to handle their own responsibilities?
The decision to bring (or not bring) a partner in your franchise business is a crucial one. So, it is important to thoroughly review your options before you decide.
