Business Crossroad: Recruiting or Becoming Partners

Business Crossroad
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If you have reached this point, congratulations are in order. This means your business journey has been a successful and promising one. However, there is one question you never consider until you find yourself in this crossroad: should you expand your workforce or trust your best employee as a company partner?

Considering the idea of a partnership can lead you to make one of the hardest choices of your professional career, marking a turning point in your road to success. Sadly, we cannot tell you which decision is best, because there is no right or wrong answer. However, we can shed some light on what you need to consider before making up your mind.

Can a bigger workforce help you build an empire...

As your company grows, so will your tasks and responsibilities. Soon, you might not be able to take on everything that is on your plate. You might want to keep your business small, personalized and in as few hands as possible, but your own success could surprise you by demanding more than you can give. When this happens, you need to let your workforce grow too, so it can meet the demands of the market and keep the levels of productivity high.

Sure enough, hiring more people means putting in more capital in both human and material resources. That’s why it is important that you see it as an investment and not a waste of money. A bigger workforce brings in added value to your company, including quality of work, a morale boost and developing a bigger, “meaner” and more effective structure.

If you are relatively new to the scene or if your company is just starting to rise, you might want to lean toward the decision of expanding your team. It may seem like a lot of trouble and bureaucracy, but remember that you control the recruitment process and you can tailor it to your needs. This way you can find and keep the perfect candidate to meet your expectations and fit your company’s model and culture.

…or should you ask your star employee to become a partner?

Although you could train your employees to perform their task the best they can, there are times when it won’t be enough to lead your company to success. Being the one in charge means having all the weight of the company on your shoulders. So, unless you are a well-seasoned professional, prepared to take on all challenges on your own, you might want to consider finding a right-hand man you can rely on in the shape of a partner.

In a partnership, your counterpart will share great connections and bring new ideas to the table that can help take your company to the top and expand the services you offer. However, this also means both of you will have to commit to the duties and responsibilities of the company and share part of its profit and losses.

Are you ready to share the spotlight? Equal rights are allotted to each partner when making crucial decisions for the sake of your business’ success –which is why you should really think it through. So, you’ll need a partnership agreement that defines the new ownership structure and compensations, as well as an operating agreement to assign your new partner’s responsibilities. And most importantly, don’t forget to discuss each point of interest to resolve any issues or concerns that may arise before you reach an agreement.

So, what’s best for your booming business?

Employees can be trained and hired to fit your goals and expectations. You can even choose who to keep or let go depending on what you want for your business. However, this flexibility comes at a price that you have to take on your own, and requires time you may not have.

On the other hand, partners can aid you financially by investing in your business, but since their compensation is not based on wages and benefits, you need to be ok with sharing the profits of your company and not being the only one in command.

Either choice will require a lot of consideration and investment on your side, so whichever suits you best, make sure tothink it through, keeping your business’ interests in mind.

Grace Cattini
Content Editor & Copywriter