Giant business with Partners or Small business on your Own

[abhiseshakana]

Based on my real experiences as a business owner in the early stages of starting out and as an investor who funding or partnering with the project owner, i completely understand your frustation, i think the root of this failure strat from business projection plan especially the cashflow projection. When preparing business proposal for investor, many entrepreneur only showing bright side and don't agressressively dig and show the negative point, worst case, and risk mitigation. When your partner leaving and ruined company liquidity i think your risk analysis are so fragile. maybe investor feel dissapointed and think your business only burning money, to avoid more lost she decided to exit.

But if you have ensure any negative point explained and written then maybe your partner has poor financial condition, like she use emergency fund saving for investment or use hot money.She doesn't understand that real business liquidity very low so next time you should dig their financial profile to ensure the meoney they are investing cold money (funds they can afford to lose or tie up for long time.

Another suggestion, do not use other people money for trial and loss, managing other people's money demands the highest level of moral, professional and legal responsibility. Adding cashflowor askingmore capital should only be taken for business that already operated and proven profitable, and for the purpose for increasing production and selling volume.

[drangos]

I believe the greater take-home from the story is not that partnerships are necessarily a bad thing, but that the exit strategy should be as well. A four month notice is reasonable. But it's important to have a formula for what the valuation of a partner's shares will be, and a plan for funding the departure if the partner wishes to leave. If not a signed contract can leave the other partners in a bind. It may be worse to sell the factory at a loss just to raise $10k, than to find another investor or even to work out the buyout.

[Anayochukwu]

Choosing a small business of my own depends on how small the business is, (they say that two heads are better than one) partnership is not entirely bad you just have to choose the right partners but if I'm going to partner with anyone I would be the sole owner of the business and I will only need investors but I still get to make decisions without anyone interfering. The contract say that no one is allowed to leave during the down season and the business is still in the down season and also she didn't even obey the rules that say that four months should be given to others and she can't just pull out without a notice and at the wrong time.

[SamReomo]

I would prefer everyone whoever is thinking of starting his/her own business. Be a boss of your own company and never do partnership or the results would be the same. Thankyou all for your attention!

Your story is strange because you three have started the business together and also had an agreement that no one will is allowed to sell the shares to third party and at least 4 months are given to partners to arrange the money to buy shares of the partner who's going to sell the shares. She's bound by the agreement and it isn't fair that she warns you people that she'll complain. Again, sometimes having such partners can really impact a business so it's always better to have your own business to not face any such issues whatsoever.

[Albarq]

I would prefer everyone whoever is thinking of starting his/her own business. Be a boss of your own company and never do partnership or the results would be the same. Thankyou all for your attention!

Naturally, perspectives on running a business vary, and personal comfort plays a significant role; however, the nature of the business itself also influences partnership decisions—particularly when expanding into extensive business networks and this can have a real impact.

[fruktik]

I am firmly opposed to business partnerships. I had a bad experience with this once and deeply regretted starting a small retail business with a friend. He was completely unwilling to do any work and constantly found excuses to shirk his direct responsibilities. Eventually, I got fed up and decided to shut the business down.

Since then, I have pursued this path on my own. It is better to hire employees and delegate various tasks to them. That, in my view, is the right way to run a business.

[EluguHcman]

I would prefer everyone whoever is thinking of starting his/her own business. Be a boss of your own company and never do partnership or the results would be the same. Thankyou all for your attention!

Anyways, if you have the funds with good business and managerial ideals, it is always better you run your own business than partnership.
Meanwhile, the essence of partnership is usually a system when you don't have sufficient capital to launch or run the business.

There is also nothing wrong in buying shares in an already existing companies as it may be an ease for you to back up risk manage but that is a case where the company has contractual protections of investors capitals in their affiliate and agreements terms.

So even if anything happens, you have an edge that secures your invested capitals.
But to be fair and confident to yourself, you can also start something else somehow with the little you could afford to avoid contradicting stories.

[Roseline492]

Op it was unfortunate that all the work and planning you guys had on the business was shattered by one person among you, perhaps that's part of the disadvantage partnership business always have because the vision and determination of all the people under the partnership will never be the same and another thing is that when one person takes a negative decision it affects the entirely development of the business except the remaining people has the money to cover up any loophole. So actually I understand that sometimes is based on how expensive the business we have on our minds is that makes us to seek for partnership but however we could start from somewhere and generate the sufficient funds we need for the business before starting so that it would prevent the challenges of partnership.

[m2017]

Last year in April 2025 I started a business of Pet Blow factory that usually prepares variety of bottles on partnership. We were 3 partners 2 gentlemen and one lady. We wrote an agreement which clearly stated that no partner is allowed to leave in down season and if any
Misunderstanding occurs among the partners that needs to be sorted out within two weeks. Furthermore if a partner want to sell his/her share shall be sold inside the group and no outsiders are allowed to interrupt. One important point that was written in the agreement was that " at least four months ought to be given to the concern partners t manage the money"

Three days ago the lady who has about 10 thousand dollars in the shares asked back for her money, that she doesn't want to continue because she is getting married and she has to fulfill the formalities for that. Usually summer remain very good for business. The season is gone and she still insists to give her money or else she will file a complain. 10 thousand doesn't seems that high amount in western countries but here in underdeveloped nations it is more than enough. The factory hasn't been on its own feet because hardly one and half year had passed. Now we are thinking of selling the factory to return her shares back even if it goes in loss.

I would prefer everyone whoever is thinking of starting his/her own business. Be a boss of your own company and never do partnership or the results would be the same. Thankyou all for your attention!

Of course, from an owner's perspective, sole ownership is the least problematic arrangement, as having partners creates a dependency on them. Partners might be helpful in the early stages, but once the business grows and becomes successful, they often try to grab a share belonging to the others - especially if the business is registered in only one person's name (don't ask why, but this is common in my country), leaving the other partners without legal protection for their rights.

I would prefer to share a business only with partners for whom breaching the partnership agreement would be highly disadvantageous. Personal trust is something that, for some reason, tends to erode over time; therefore, one shouldn't rely on trust alone. Another mistake is going into business with friends or relatives; this very often leads to falling out.

If you see no other option and have to take on business partners, you should discuss the terms of the relationship beforehand and formalize them in a legally binding contract (complete with penalty clauses) so that it wouldn't be in the partner's interest to "strangle" a promising business by walking away, as happened to the OP.

[avp2306]

Last year in April 2025 I started a business of Pet Blow factory that usually prepares variety of bottles on partnership. We were 3 partners 2 gentlemen and one lady. We wrote an agreement which clearly stated that no partner is allowed to leave in down season and if any
Misunderstanding occurs among the partners that needs to be sorted out within two weeks. Furthermore if a partner want to sell his/her share shall be sold inside the group and no outsiders are allowed to interrupt. One important point that was written in the agreement was that " at least four months ought to be given to the concern partners t manage the money"

Three days ago the lady who has about 10 thousand dollars in the shares asked back for her money, that she doesn't want to continue because she is getting married and she has to fulfill the formalities for that. Usually summer remain very good for business. The season is gone and she still insists to give her money or else she will file a complain. 10 thousand doesn't seems that high amount in western countries but here in underdeveloped nations it is more than enough. The factory hasn't been on its own feet because hardly one and half year had passed. Now we are thinking of selling the factory to return her shares back even if it goes in loss.

I would prefer everyone whoever is thinking of starting his/her own business. Be a boss of your own company and never do partnership or the results would be the same. Thankyou all for your attention!

Of course, from an owner's perspective, sole ownership is the least problematic arrangement, as having partners creates a dependency on them. Partners might be helpful in the early stages, but once the business grows and becomes successful, they often try to grab a share belonging to the others - especially if the business is registered in only one person's name (don't ask why, but this is common in my country), leaving the other partners without legal protection for their rights.

I would prefer to share a business only with partners for whom breaching the partnership agreement would be highly disadvantageous. Personal trust is something that, for some reason, tends to erode over time; therefore, one shouldn't rely on trust alone. Another mistake is going into business with friends or relatives; this very often leads to falling out.

If you see no other option and have to take on business partners, you should discuss the terms of the relationship beforehand and formalize them in a legally binding contract (complete with penalty clauses) so that it wouldn't be in the partner's interest to "strangle" a promising business by walking away, as happened to the OP.

Less problematic, because we don't need to deal with different people. Then we can decide whatever things we like to implement in our business. Having a partner somehow really bring good help, since they can share their ideas which can possibly help the company to grow. But the risk side is maybe lots of problem will occur, especially if there's certain issue raise in future.

But if they really want to take a risk,  maybe best for those people to create an arrangement or rules that giving penalty to their partners. Once they decide to leave. So it will be so hard for them to just easily liquidate and walk away with the business they start to build.

Looking the hassle and any unnecessary things, it gives me an impression that its better to work solo, rather than think about seeking for another problem.

[oll]

Last year in April 2025 I started a business of Pet Blow factory that usually prepares variety of bottles on partnership. We were 3 partners 2 gentlemen and one lady. We wrote an agreement which clearly stated that no partner is allowed to leave in down season and if any
Misunderstanding occurs among the partners that needs to be sorted out within two weeks. Furthermore if a partner want to sell his/her share shall be sold inside the group and no outsiders are allowed to interrupt. One important point that was written in the agreement was that " at least four months ought to be given to the concern partners t manage the money"

Three days ago the lady who has about 10 thousand dollars in the shares asked back for her money, that she doesn't want to continue because she is getting married and she has to fulfill the formalities for that. Usually summer remain very good for business. The season is gone and she still insists to give her money or else she will file a complain. 10 thousand doesn't seems that high amount in western countries but here in underdeveloped nations it is more than enough. The factory hasn't been on its own feet because hardly one and half year had passed. Now we are thinking of selling the factory to return her shares back even if it goes in loss.

I would prefer everyone whoever is thinking of starting his/her own business. Be a boss of your own company and never do partnership or the results would be the same. Thankyou all for your attention!

I had a friend who built his own business from scratch, specializing in the production of prosthetics. It all started with a completely selfless and kind goal - to help people, and especially children with disabilities. He managed to expand the business and became a director who oversaw the processes. Then, at some point, he started receiving government contracts, which, as you know, are fully profitable and legally sound.
Unfortunately, at some point, this friend decided that he wanted freedom rather than managing the processes. In the end, when I asked him to give me a job, he said he was no longer involved in the matter, and everything was being run by the board of directors and the investors. In short, he somehow lost his business.

[aoluain]

We have a saying in our country, "Never go into business with friends or family" !

There are merits to being a "sole trader" operating on your own. You can run the business whatever
way you would want. The down side is when it might come to expansion there may not be enough
liquidity to find that move and a loan may not also be possible.

On the other hand starting a business with someone else has its benefits, but its important to have
as much agreed upon as possible so that in the case of the OP's scenario there is a clear agreed upon
procedure which everyone agreed on.

[Bd officer]

Now we are thinking of selling the factory to return her shares back even if it goes in loss.

I would prefer everyone whoever is thinking of starting his/her own business. Be a boss of your own company and never do partnership or the results would be the same. Thankyou all for your attention!

Have you decided to sell the entire ownership? As per your agreement, you can take 4 months, so why would you decide to sell before the stipulated time? If you had a Partnership Agreement, why would the woman suddenly break the agreement in the middle? You can enforce the terms of the agreement. And if she files a complaint, then you will show the agreement, the law will be based on the agreement.

I have also decided to start a business but I am not able to start due to insufficient funds. Some people wanted to become partners with me but I do not like partnership business. I will start a sole proprietorship business.

[yixichloro2xx]

‎It depends on your goal, like me I would love   to expand to expand my business. Scaling up a business can't be easily done alone, so that's where having partners becomes important. Let's assume I have a cookie business and I want to scale up with amount of ($2 million dollars), I could just meet people to partner with in other to raise that amount, reducing the chances of bearing the burden alone. You will  have access to more capitals, idea, networks, etc. The only bad thing there is when  disagreements happens in terms of ideas, sharing formula, decisions,  or having a bad partner. But if your goal as a businessman is to scale up a little bit and you don't want any drama,then sole proprietorship is okay. At least you have control over your decision, but the risk and capital is what make it tough. Withe the right partners, can make some visions or goals to be achieved easily.

[Junii]

Furthermore if a partner want to sell his/her share shall be sold inside the group and no outsiders are allowed to interrupt. One important point that was written in the agreement was that " at least four months ought to be given to the concern partners t manage the money"

Yes u are right partnership in business needs a lot of trust and patience no doubt if there are 2 or 3 brains works on one thing the result is good but it also risk other things as well. By the way in your case i was curios why you want to sell the factory just because you have to pay her share but in your agreement you also write  about four months clause why you and the other partner buy her share by giving her money in the four months your agreement is in your favor if u want to continue that business.   

[Rabata]

I would prefer everyone whoever is thinking of starting his/her own business. Be a boss of your own company and never do partnership or the results would be the same. Thankyou all for your attention!

There are some obligations in a partnership business. If all the partners have the same attitude, then the business can be profitable, but if the partners do not have a good relationship each other, then the business can quickly fail. As happened in your case. I will not say that partnership business is bad, but it is not good for everyone. If you cannot select the right partner, there will definitely be chaos. Out of the three of you, one of them was a woman and that is where the problem arose. It may be that a person's attitude changes at any time. But if the contracts are written properly, then such a problem should not arise.

If one has all the necessary support to start a new business along with financial capacity, then I would recommend a sole proprietorship business. It is definitely much better than a partnership business. In your own business, you have the opportunity to work as you wish and manage the business in your own way, which is difficult for a partnership business. Moreover, starting a sole proprietorship business does not require additional contracts.

[decodx]

I would prefer everyone whoever is thinking of starting his/her own business. Be a boss of your own company and never do partnership or the results would be the same. Thankyou all for your attention!

If you run a sole proprietorship then you also get total control, however every penny of whatever that expansion takes comes directly out of your own pocket, or off your own personal credit. I know that for a fact, first hand by struggling to get this particular hands-on workshop project to the next level. If you're working in this sector, let say what ever it is we are making is big time and requires a $15,000 piece of heavy equipment like a CNC mill or a custom-made band saw system to work larger size jobs then you simply don't have a board you can pitch to or a partner with the cash to share with.

Partnerships change the dynamic entirely. Bringing in other people means immediate access to more capital, different skill sets, and better leverage with banks. When two or three people pool their assets to buy equipment or secure a commercial lease, lenders suddenly view the business as far less risky.

I guess everything has its pros and cons, but sometimes, you just don't have a choice. Like when you need capital that you don't have, for example. I wouldn't categorically rule out a partnership just because of one negative experience; there are many other positive stories - too many to list here.

[Myleschetty]

I'm sorry about what happened to you guys, but doing a joint venture is never a good idea because both parties will never have the same vision or understanding about the project success in the next few year's. Instead, it's always a good idea to look for angel investors who will have stakes in the business or receive dividends.
This remind of something that happened to people (2 bosses which create a team) who I know and work with for years in online marketing. The marketing agency was doing well until there was a financial misunderstanding between the two bosses, at which point it collapsed the marketing agency. Both bosses split up and contacted clients for work, but things were never the same for either of them.

[Merit.s]

I don't like to go in partnership with a lady because they ain't good at taking risk because they give up easily without having a strong decision on their own.

OP, are you sure that you and the other guy didn't persuade her to invest because with the written agreement she doesn't have the right to ask for her full money at once. I prefer running my personal business that a joint venture.

[Stormisover]

This is a thing of choice and preferences, there are people that will like to partner for a huge begining, and they sees it as an opportunity to start up their own personal business after sometimes with a huge profit, and left with me I'd prefer to partner with a giant business, than stating alone with a small business, one can be in partnership with someone and still have a huge investment aside that one, but there are some that treasure private life, that they will see anything partnership as a burden to their private life, and to such persons no matter the offer on the table for a partnership they will always turn it down.