Success for entrepreneurs may come down to finding the right business partner

Business owners are focused, determined people (putting your heart and soul into something has that effect). So, deciding to bring a partner into their business isn’t something they do lightly. However, it’s a step many owners find themselves considering at a certain point in the life of their business.

Research from the World Economic Forum (WEF) in 2022 titled Small Business, Big Problem showed that for more than two thirds of small and medium business owners globally, survival and expansion was top of mind.

For as many as half of these owners, the solution was to look for a business partner to help. The challenges of establishing and scaling a business, successfully competing in an increasingly globalized market, bring owners face-to-face with multiple different imperatives to partner up.

Driving revenue growth

The early twentieth century actor and entertainer, Will Rogers, once said “Even if you are on the right track, you’ll get run over if you just sit there.” It's a quote that could be a motto for success in business. Successful businesspeople know they can’t stand still in the race for revenue.

The most successful businesspeople know they sometimes need help to do this.

Bringing in a business partner with new skills and expertise can be the answer. Business owners are seeking potential partners with digital experience, or experience in new products, new markets, or new geographies. Any one of these will build new revenue streams and reduce the risk of business failure.

Improving operational efficiency

The same imperative to drive revenue growth is also behind a constant need to drive efficiency. Among the concerns weighing on the minds of those two thirds of business owners worried about survival and growth was the thought of a competitor undercutting their margins and stealing business.

A business partner with real expertise in operations or management can be the key to unlocking the competitiveness needed to help insulate a business from its competition. 

Funds for growth

The 2022 WEF research also found that nearly a quarter of small-to-medium enterprises identified access to low cost finance as critical for business growth. Engaging an investor as a business partner is a channel for accessing this capital without borrowing.

Splitting the owner’s workload

Half of small business owners work 50-60 hours a week or more while they try to keep all the plates spinning. They might manage to squeeze in a short vacation at Christmas.

It’s a grueling schedule. A business partner with deep skills in an aspect of the business can share leadership responsibilities and reduce the burden on the founder, freeing up time for a better work-life balance or for more focus on long-term business strategy.

To help business owners scope out the financial benefits of bringing in a partner, the PrtnerUp website has a calculator tool that can help to model scenarios.

Talent Management

An important non-financial advantage to bringing someone in as business partner is locking in their expert skills. Once again, the WEF research showed that 48% of business owners thought that attracting and retaining key skills was critical to their long-term survival.

Too many small businesses will have experienced the problem of recruiting a key person to solve skill gaps in marketing, technology, operations, or management, and then watching that person leave for a better offer after a few years.

Bringing someone into a partnership helps drive their commitment to staying around for the long term.

In addition, giving someone a stake in the business is an instant antidote to the bewildering range of employee resentment that gained ground during the COVID pandemic such as quiet quitting, coffee badging, and any other type of resenteeism.

There is one last reason beyond driving revenue, improving efficiency, funding growth and splitting an impossible workload, that might have business owners wanting to bring a partner into the business.

Succession planning

A business partner (or multiple business partners) can play an essential role for an owner looking towards retirement or transitioning out of day-to-day operations. Whether it allows for a complete or perhaps a gradual withdrawal from the business, the new business partner(s) help to ensure the business continues to thrive while the original owner steps out.

Top industries for PrtnerUp business owners

Right now, nearly 50% of the business owners who have joined PrtnerUp are from just four industries:

• Retail
• Construction and trades
• Information and technology
• Manufacturing

These owners are seeking experts in business management, marketing, finance and technology. Some are seeking start-up help, while others are seeking investors to fund their growth.

The common thread among these entrepreneurs is that they’re looking at the challenges ahead of their business and recognizing that their ability to navigate them successfully will be substantially boosted by finding the right subject matter expert to partner with.