The Power of Partnership - How To Start Your Dream Business Even If You Don’t Have Enough Capital Written by smallst

5 Reasons Why You Need A Business Partner
When entrepreneurs have brilliant business ideas , our natural
instinct is to tell ourselves that we can do it alone. We want to
become the hero, the ‘self-made’ successful entrepreneur . What
we often do not realize is that the journey to success in the land of
business can be tough, ruthless and very challenging. To increase
your chance of survival and success, it’s often a great idea to find
a good person to share this journey with you. I have had a couple
of business partners and have gained some knowledge and
experience in working with the right partners to get what you want.
Here are my top five reasons why I think you need a business
partner:
1. Access to more capital resources
Inadequate capital is a common threat that faces African
entrepreneurs every day. It is also the single biggest reason why
many people will never start a business in their lifetime . Although
access to startup capital is a challenge for entrepreneurs across
the world, I think it’s a much more serious problem in Africa.
Banks make it difficult for small businesses to access loans, and
finding investors to support a new business idea is often a wild
goose chase. In response to several requests from my readers to
suggest solutions to the ‘access to capital’ problem, I once wrote
an article about 10 Guaranteed Ways to Raise Capital for Your
Business. The Number 3 option in that article is business
partnership. Unlike a bank that would ask for collateral and
demand high interest rates, a business partner can provide capital
on far more favourable terms.
Rather than get a bank loan (which would have been very difficult,
if not impossible), I provided some of the capital while my
business partner contributed the rest. As a result, we shared the
risk of the business between ourselves, which is much better than
one person bearing the full financial risk.
If I didn’t have a partner to contribute some of the capital, it’s very
likely that my brilliant business idea would still be locked up in my
head by now. But by sharing my idea with the right person, I
attracted the extra capital I needed to make the business take off!
On a continent where access to capital is poor, African
entrepreneurs can find the capital they need to make their business
ideas come alive by joining capital with other people. Compared to
other sources of capital (such as banks, investors etc.), business
partnerships are an easy, convenient and low-risk source of
startup capital.
2. Diversity of ideas, perspectives and opinions
“Two (good) heads are always better than one.” That was a
common expression from one of my school teachers who
always reminded me of the value of cooperating with other
people and working together as a team. From my experience in
business partnerships, my teacher’s statement is completely
true. Two good heads are many times better than one!
I know this because when I first discussed my idea with my
business partner, it was like refining gold. We brainstormed,
analysed, debated and argued on different aspects of the
business idea and how and why it would work. We both had
different perspectives and opinions of the idea and this
diversity helped us to make the idea better and stronger. It was
a great experience. (photo credit: fourathens.com)
Do you know what ‘tunnel vision’ is? It’s a disability that affects
entrepreneurs who come up with brilliant business ideas . Tunnel
vision is a close-minded way of thinking that makes you see only
the favourable things you want to see. While this may sound good,
it’s actually dangerous when you’re working with business ideas.
What seems great and profitable may not turn out to be that way.
That’s why you need another ‘eye’ who can objectively look at your
business idea and bring to your attention those things you missed
out or were too excited to think about. This is exactly what a good
business partner will do for you.
The benefits of a diversity of ideas, perspectives and opinions
shouldn’t stop at the ‘idea stage’ of your business. It will also help
your business as it grows and encounters new challenges,
problems and opportunties. This is exactly one of the greatest gifts
I enjoy from business partnerships. I have found that better
decisions and solutions are made when two or more ‘good heads’
come together to do business.
3. Do more with your time.
Have you ever been in two places at the same time? No, I’m not
talking about horror movies or ghosts. I actually did it last week. I
had already fixed a doctor’s appointment when the technician
who’s buiding the machines for my new business called for an
important meeting at the same time I was supposed to be with the
doctor. If I was in this business alone, I would have had to suffer
the inconvenience and pressure of losing one of these
appointments. Fortunately, my business partner took care of the
technician while I kept my date with the doctor!
Yes, a business partnership allows you to do more things with your
time and helps to reduce the pressure and stress of doing
everything by yourself. When you’re not available to take care of
business, it’s good to know that there’s somebody you can count
on to cover for you. It works just like insurance.
My business partner got married last month and on that same day,
we had to supervise work at the site. Guess who made sure
everything went well at the site? Me! I showed up early at the site,
made sure everything went well and drove back just in time before
the wedding reception started. The business did not suffer any
delays because of the wedding. That’s one of the sweet benefits of
business partnerships!
4. Everyone needs some emotional support
The journey to success in business is usually full of highs and
lows, ups and downs, wins and losses, successes and failures. If
you’re not strong enough to withstand the shocks and disasters
that come with business, you may become discouraged and
ultimately give up. While some entrepreneurs can withstand these
shocks on their own, many of us need some measure of emotional
support.
Before we found the technician we’re using to build the machines,
we tried for several weeks to find one but failed. I remember one
Saturday afternoon; we walked for several hours under the rain,
looking for a technician who had skills and experience in building
the machine we wanted. Wet, sad and discouraged, this event
made me to gradually lose faith in the business idea. I’m sure if I
were in the business alone, my idea would have died a slow but
certain death due to that frustrating experience.
Fortunately, my business partner remained positive and kept the
idea alive. After a few more weeks of searching, he finally found a
good technician and I couldn’t be happier with the guy he found.
Our business moved many steps closer to reality because my
partner provided emotional support and helped to keep hope alive.
Who knows what could have happened if I stood alone after that
discouraging Saturday event.
5. Access to a wider network of contacts
Starting up a business is about getting things done. Raising
capital, finding a good office location, buying the right equipment
and hiring employees are just a few of the important things on
every entrepreneur’s mind. If you don’t know where to look or find
help, getting these things done can be very challenging and may be
the difference between a business that successfully takes off and
one that doesn’t.
Nobody knows everything. That’s why it’s always good to
interact and work with other people who may have answers to
our problems. You never know, you may find a solution to your
challenges through someone who knows someone. Like they
say, it’s a small world we live in.
While brainstorming on our business idea, we needed to get
information on a company that produces a similar product to
the one we were working on. I didn’t know how to get this
crucial piece of information and didn’t know anybody who
could. Guess what? My partner made one phone call and after
two minutes of conversation, he had fixed an appointment
through one of his contacts to meet with somebody who works
in the company. This could have cost me time, money and
effort if I had to do it alone. (photo credit:
rcareerblog.wordpress.com)
In my experience, a good business partner will give you access to a
wider network beyond your own personal contacts. This can prove
to be a huge and very valuable asset!