Business partners

[Flying Fish]

Why do people have business partners? Is there an advantage. Can I run a business by myself? Any thoughts?

 

[surfingman]

http://www.business.gov.au/Business+Entry+Point/

You can run a business by yourself i would strongly recommend not having a business partner, get an employee if need be.

Keep the majority of takings in your pocket.

 

[Flying Fish]

Thx surfingman.

 

[tech/a]

Business partners are generally taken on for Finance reasons.
When I first started in business I had one.
Mine was a good partnership lasting 10 yrs.
However as is often the case partnerships start with the same goal in mind and finish with very diversified objectives.
Eventually the business folds or one is left with buying out the other.
Worse one partner moves the business forward and the other just takes 50% of the profits.

Being the sole director is in my view the way to go.(Including your spouse!).

 

[Flying Fish]

THX Tech-a. So there are no tax benefits derived from a partnership pursay. I guess the only problem I see with being sole business owner is inability to take holidays or sick leave.

 

[tech/a]

No tax benifits unless your partner is your Wife.

As for holiday and sick leave.
This need not be a problem.
If the business is profitable enough to support a partner then its profitable enough to not have a partner but a valued employee who can allow you to have holidays and the odd day off if crook.

When I first started I didnt have more than a long weekend off for 16 yrs.
As the Company grew I was told that Companies which can run profitably without you are worth far more than those which cant.

3 yrs later I had designed the business to do that.
Took 9 weeks off and toured the US.
Have done similar trips every year for the last 6.

One of my favorite Business-isms.

Who is the smarter?
He with a Degree
OR
He who employs those with degrees.

 

[Flying Fish]

No tax benifits unless your partner is your Wife.

As for holiday and sick leave.
This need not be a problem.
If the business is profitable enough to support a partner then its profitable enough to not have a partner but a valued employee who can allow you to have holidays and the odd day off if crook.

When I first started I didnt have more than a long weekend off for 16 yrs.
As the Company grew I was told that Companies which can run profitably without you are worth far more than those which cant.

3 yrs later I had designed the business to do that.
Took 9 weeks off and toured the US.
Have done similar trips every year for the last 6.

One of my favorite Business-isms.

Who is the smarter?
He with a Degree
OR
He who employs those with degrees.

Sounds like a good business model. well done