There Is No Us in Business: A Practical Guide To Knowing When to Take On a Business Partner (And When Not To)

By Patrick Burke

Many of the best companies, like top recording artists, are solo acts. Just as recording artists need a room full of other musicians and technicians to create their best music, sole owners need a team to produce and sell their product. Ultimately, however for solo acts it is their music and for the sole owner, it is their business.

• Language: English
• Publisher: BookBaby
• Release date: Apr 15, 2019
• ISBN: 9781635821086

Patrick Burke

Patrick has been a specialist coach and trainer in spoken communication skills for manyyears. He has worked with a variety of well known international companies throughout Europe. He has coached and trained at all levels from graduate new entrant to Chairman and CEO. He is an independent consultant but throughout his career in this field he has also worked for Speak First(www.speakfirst.com) one of the leading communication skills training companies in the UK and overseas. Prior to this part of his career Patrick was the UK Director of Sales and training for the Personal Financial Services division of HSBC. In this position and more recently he has had extensive experience of speaking in public to a variety of audiences. He started writing and delivering speeches when he formed a train spotters club at the age of twelve! He wrote and published the club’s magazines which are still in his possession today and are an hilarious read although they were seriously written! Patrick was born in Harrogate, North Yorkshire and now lives with his wife Anne in East Sussex. Here are just a few comments from some of those he has trained : • “ Patrick was excellent. Now that I have had this training, I feel I have overcome my fear of presenting” – H.Mckown. Building surveyor • “ Patrick understands the whole idea of public speaking at all levels. He’s very knowledgeable and gave me confidence in him and his ideas” – M.Gardiner, Govt.Agency • “Excellent in his knowledge of the subject and ability to put it across, very empathic, K.Poole, Public utility supplier and manufacturer. • “ He was a good example of the subject” – K.Peel, Advertising executive. • “He gave me increased confidence and support, very knowledgeable and positive” – C. Harris, Public relations and advertising company “Thanks for taking the heartache out of giving presentations .Everyone in the company should attend your training” – M.Donn, International Battery manufactures.

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PREFACE

Do I need a partner? I have been a business adviser for more than thirty-five years, and this is one of the most common questions I am asked by entrepreneurs. This is true whether they are starting their first business or expanding an existing one. This book will not only answer that question, but also tell you how to grow your company while (ideally) maintaining 100 percent ownership or at least a controlling interest. Holding on to as much of your company’s ownership as possible and sharing it only when it’s absolutely necessary is simple logic. However, in my experience this simple logic gets complicated when business owners allow emotion to dictate whether to go solo or take on a partner.

It seems just when entrepreneurs would benefit most from a clear-eyed assessment of what’s needed to succeed, they succumb to the emotional need to partner. I hope the many alternatives to partnering, along with the cautionary stories presented, will convince you to focus instead on how best to operate, grow, and exit your company on your terms, to maximize your return.

ONE: Solo Is OK

I know, literally, there is an us in business. However, owning and running a business is one of the few instances in which it is all about you. Your business must compensate you for your time, effort, talent, and capital without the dilution caused by an unnecessary partner.

The census bureau estimates there are 27 million businesses in the United States. Of these, 20 million have only one employee, the owner. There are no figures for companies owned by only one person that have more than one employee, but let’s just say it’s conservatively another 3 percent. That would mean that roughly 80 percent of businesses in the United States are non-partnerships. (By the way, I will use the term partnership to mean any business with more than one owner; I will specify if I am addressing the particular characteristics of a partnership or an LLC as compared to a corporation.) A substantial majority of businesses are owned by one person only. That doesn’t make them right, but it’s significant.

The principal goal of a business is to make money. Much good naturally flows from a profitable business, primarily meaningful work for employees. Moreover, a profitable business, which is also a model corporate citizen, invigorates the community by patronizing other local businesses as well as providing charitable contributions and sponsorships. That said, the rest of this book will stress the more mercenary aspects of business.

To establish my bona fides: I’ve advised more than two hundred start-up businesses, some one owner, some multi-owner; I am not currently a single owner in any business but was a sole proprietor in two of my businesses before I took on partners; I’ve split from a partner in my principal business of a CPA firm; I’ve successfully added a partner to that firm; I am currently a partner in six operating businesses and two real estate deals. So I know a thing or two about when two is too many and one is not enough.

Obviously, based on my own track record, there’s nothing intrinsically wrong with partnerships. In fact, according to the US Small Business Administration, businesses with multiple owners are likely to survive longer than sole proprietorships. However, I challenge the knee-jerk reaction of starting a business with someone who will also own part of that business without a very compelling reason.

TWO: Two’s Company

Of all the reasons to partner with someone in a business, friendship is perhaps the worst. As they say, If you want a friend, get a dog. I would add, If you’re looking for a partner, join a dance class. In my considerable experience, friendships rarely survive partnerships. You should heed