20 Apr, 2007
Podcast - Choosing a Sole Proprietorship vs. a Partnership
Posted by: Jason Drohn In: entrepreneur tip| podcasts
One of the most fundamentally important, and oftentimes messy, situations in starting a business is deciding whether it is going to run as a partnership or a sole proprietorship. Each have their advantages and disadvantages, to be sure.
This podcast really just serves to point out some of the things you should keep in mind in signing on a partner.
Shownotes for JDsPodcast: Episode 13.2 - Proprietorship vs. Partnership
- The benefits of a sole proprietorship
- Full, 100% equity
- Control of the business
- Absolute decision making and implementation
- You will be responsible for the success (or failure) on your own.
- You can shape the business anyway you like
- The drawbacks of a sole proprietorship
- 100% equity - legalities can take everything
- No sounding board or advisory board for decisions (unless you appoint them)
- No one to collaborate or work with
- One person can totally kill the business
- VC’s and investors do not encourage it
- The benefits of a partnership
- Partners share decision making
- Work can be divided
- Emotional support in a professional sense
- More networking contacts
- More areas of expertise and further education
- More total experience in sales, management, etc.
The drawbacks of entering a partnership
- Share the equity and ownership responsibilities
- Share profits
- Share control
There are also some personal experiences such as design, coding, marketing, and directional focus.
Anyway, I hope you enjoy the podcast. Any thoughts or comments, let me know! Have a good weekend.
JDsPodcasts.com - Episode 13.2: Proprietorship vs. Partnership
