You are running a successful business as a consultant. Work is coming in at a steady but quickening rate, and you are really enjoying the freedom and control that come with entrepreneurship. The rewards of working solo are undeniable, and it’s a very satisfying way to earn a living, but it has its limits.
People working solo tend to break into two groups: those who enjoy working alone and don’t want to build their business beyond what they can handle, and those for whom working solo is just the first step toward building a business that will grow well beyond them. Getting clear on what your goal is as an entrepreneur is the first step in figuring out when and why you should consider a partnership.
We are lawyers who first met while working in the Vancouver office of a national firm. We were both entrepreneurs at heart and left the firm within a couple of years of each other to start our own practices.
We each had a pretty clear vision of the kind of firm we wanted to build, but we weren’t sure at first if that vision would involve a partnership or not.
We approached the partnership idea slowly. We owned and managed our own separate practices but had an affiliation that allowed us to share work. This proved to be a good approach as it allowed us to judge our compatibility and to really see if we could work together as partners.
Meanwhile, our practices were at the point where new business was starting to become overwhelming.
When you are at the point where you have more business than you can comfortably handle, you have to make a decision to either turn business away or grow. We both wanted to grow, and after a year of collaborating, we knew we could work well together. We shared the same business goals, so it became clear that the time had come to formalize our partnership. In late 2012 we decided to merge firms and become full partners.
Having a similar vision, values and goals is the foundation of a strong partnership. People considering this move should be comparing their business goals.
Do you see it as an opportunity for things like personal and professional development, leadership and building a business you are proud of? Or do you see it as an avenue to making as much money as possible?
If your goals do not align, building a company together will not be easy or fun.
If your work ethics are too different, it could also lead to problems down the road. If one of you left the big firm life in order to skateboard into the office at 10 a.m. and wear jeans, and the other is at his or her desk at 7 a.m. in a polished business suit with meetings lined up until 7 p.m., there are going to be issues with resentment and a compensation model that is unfair.
Having a complementary set of skills and client base is helpful. In our case, each of us is a commercial litigator with a focus in areas that complement one another. One has a lot of local contacts while the other has a more international practice. The fit works well for us.
The partnership advantages we see are: tasks are divided; two people are the face of the firm and can grow the business more widely; complementary skills result in a much more solid business plan and day-to-day operations that run more smoothly. You can access two people’s resources, borrowing power and capital to allow for quicker growth; risk is spread out.
If you are considering a partnership, working together on projects before you make the full commitment will allow you to see how well you might work together.
Have candid discussions about your vision for the company and your approach to work. If it’s the right fit, a partnership is a good idea because at the simplest level two like-minded heads are better than one. •
