Four Alternatives To A Business Partner For Entrepreneurs Who Don’t Want To Work Solo

From 2007 to 2018, 12 full years, I had a business partner in my career coaching business, and there were pros and cons to having an official partnership. In the plus column, I wouldn’t have started the business without a partner. I’m risk averse and felt that two people building a business from scratch would enable us to get up and running faster. My partner at the time had more experience and a big network. Two additional pluses were credibility in the early days from her deep experience, as well as landing some early sales from her established network.

On the negative side, a partner takes some of the money, and that may outweigh their benefit to the business. In the case of my partnership, we divided each sale into thirds. One third of the revenue was put back into a communal pot for the business. One third was earmarked for whomever sold the piece of work. The final third was for whomever executed the work. Separating sales from execution gave us flexibility to sell a project but outsource it to someone else. Setting aside money for the business made us accountable to the shared business. I still think the financial arrangement was fair, but it also meant that, even if I sold and executed a project 100% solo, I was still giving up at least one-sixth of the fee (50% of that one-third that goes to the business).

That one-sixth became more significant as the business grew, and I grew more comfortable working on things solo. Just a few years into the business, I was already selling and executing most of the work, and I probably would have made more money had I ended the partnership earlier. I also would have had more flexibility to take the business in exactly the direction I wanted. Finally, I would have been able to 100% control the brand and messaging of the business if it were 100% mine.

I really enjoyed having a business partner because entrepreneurship can be lonely, and I didn’t want to work solo. But a business partner is an expensive solution to a problem that can be solved in several other ways. The fact is, you don’t need to have a formal partnership to get the camaraderie, outside perspective, support and accountability a partner brings.

For camaraderie, consider a co-working space

Even when I had a partner, I was a member of a co-working space for years. The one I used in New York City is now closed (WeWork really squeezed out a bunch of the independents), but in the several years I was a member, I met many entrepreneurs that I’m still friends with today.

In these shared offices, you work side-by-side, so you have the personal contact without having to share professional objectives. My colleagues included people in very different businesses – IT support, home organization, tutoring, communications consulting, etc. Many spaces actively foster camaraderie through events and workshops, and some businesses end up partnering or contracting services out to each other.

For outside perspective, join a mastermind group

When the pandemic hit and our travel plans were shuttered, I focused the newfound time on my coaching business, and I didn’t want to go it alone so I joined a mastermind group (I think the mastermind name is credited to Napoleon Hill, who popularized this concept in Think and Grow Rich). My particular group was a nine-month structured program focused on business development. The participants were experienced business owners coming together to focus on sales and marketing, and the group was put together and facilitated by an experienced marketer.

This wasn’t my first mastermind group. I have joined three others in my 14+ years in business. Some professional associations offer regular meetings, contacts to other members, and newsletters with trends and tips, so you get some of the benefits of a mastermind. With masterminds or active professional associations, you can brainstorm, get additional expertise, and hear outside perspectives to your own. Unlike a co-working space, your commitment, especially to a mastermind, is more time-intensive and structured.

For support, create a joint venture rather than a partnership

If you need support for a larger project, you might find what you need in your co-working space or mastermind group. Instead of bringing on a forever partner, you could partner just on that one project. This arrangement can be structured like a joint venture – one and done for a particular client, or an ongoing arrangement for a specific type of project.

Working on a single project or client as a joint venture gives you a chance to try out working side-by-side with someone. It enables you to grow when needed, but not be wedded to a new structure. It gives you the flexibility to pick and choose who might complement your skills and expertise as needed.

For accountability, hire a Coach or Advisory Board

Many entrepreneurs are already self-motivated, but the ups and downs and loneliness of business-building make it difficult to maintain all that momentum solo. A joint venture can keep you accountable to that client or project. Your mastermind group keeps you accountable over time. Your co-working colleagues might also hold you accountable, as you see others busily working on their projects.

But sometimes you want a dedicated resource to call you out on things you’re resisting or customized help in overcoming a particularly difficult block. Hiring a coach or putting together an advisory board gives you people dedicated specifically to you and your business needs. As these needs inevitably change over time, you can bring on different people as needed

As an entrepreneur, I have used all of the above alternatives to a business partner

I spent $6,000 on learning and development in 2020, including two masterminds. In previous years, I have worked with coaches, taken on joint venture partners and rented in two different co-working spaces. I mix and match the support I need based on my business goals and personal circumstances. There isn’t only one way to work effectively, and I have found my needs and preferences change over time.