Should I Bring a Partner in on My Franchise?
Deciding to go into business for yourself is one of the most empowering decisions you can make throughout your professional career. While such a large undertaking is exciting, it can also be nerve-racking. It’s for this reason many franchisees go into business with a partner.
Pros of a Business Partner
- More ideas. If you’re the kind of person who likes to bounce ideas off of someone else, a partner may be the right choice. A partner may also bring expertise and knowledge that you don’t yet have to the table.
- Lower start-up costs. Because you’ll now be splitting the start up costs with someone else, your initial investment will be significantly lower.
- Greater borrowing capabilities. If you’re taking out a loan to pay for your business, a second name or cosigner will make it easier to get a large loan.
- Someone to “pick up the slack.” There’s no denying it — starting a business is hard work. Especially if you’re a first-time franchisee, a partner can help you juggle the many tasks you’re now responsible for. You can also both tackle a task and get it done in half the time it would take just one of you.
Cons of a Business Partner
- Risk of disagreement. When you’re in a partnership, you can’t be the one to make the final decision. From buying inventory to managing employees, everything will have to be a compromise. It’s for this reason that we suggest not simply becoming partners with a friend you get along with, but with someone whose business philosophy you agree with.
- Your partner’s financial problems could affect you. If your partner makes any irresponsible financial decisions (whether in his/her personal or professional life) your “half” of the business could be in jeopardy as well. If your business isn’t able to pay back debts because of bad mistakes made by your partner, collectors can legally come after your personal money.
- Divided profits. Just like you shared start up costs, you’ll also have to share all profits from the business. If you have more than one partner, your share of the profits could be relatively small, particularly in the first few years when your business is just starting out.
If you’re looking to be a part of a low-risk, high-growth industry, with high rates of repeat customers and a business model that ramps up quickly, we think it’s time you joined the Pack!
To receive your complimentary executive summary and learn more about franchise opportunities, fill out the form below or call us at (870) 600-2713. We’re looking forward to having you join the Camp Bow Wow family!