Pros and Cons of Starting a Business by Yourself Instead of With a Partner

If you are thinking about starting a small business, you'll need to make an important choice. Do you want to get the company off the ground on your own without any help? Or do you want a partner to work with you?

Both options have pros and cons that are worth considering. Consider them to make an informed choice about what's right for you. 

Benefits of starting a business on your own

Here are some of the biggest benefits of starting a company by yourself and not working with a co-founder:

• You get to keep the profits: You don't have to share the money you make with anyone else (although, of course, you do need to pay employees if you have any). It can be easier to make enough profit to support one founder instead of two. 
• You get to make the decisions. The success or failure of your company rests on you alone. You don't have to take other people's opinions or ideas into account or risk disagreements with someone who may not perfectly share your vision. 
• The process of getting started can be simpler. You don't need to find a co-founder and create a legal agreement, as you would if you were starting a business with someone else. You can begin your operation and grow your business at your desired pace. 

Because it can be so much simpler and easier to go it alone, around 73% of people who start businesses operate as sole proprietorships and don't have a partner or other co-owners working with them, according to U.S. Census data. 

Disadvantages of starting a business on your own

There are some huge downsides to starting a company by yourself instead of with others. Here's what they are: 

• You have to share your profits. You and your partner both need to be able to take money out of your business bank account to provide you with the income you need to survive. Since there are two co-founders to pay, your company has to generate more revenue to be profitable. 
• You'll be taking on all of the financial risk. If you have a partner, you can split the cost of getting the business up and running. If you don't, you'll either need to pay all of the money necessary to fund the business out of pocket or get a loan or investors (who would then get a share of the profits). It's harder to come up with the money without help and you stand a greater chance of suffering big financial losses. 
• You won't have anyone to help you succeed. You will have to rely on your own skills rather than having a partner come to the table with their own talents and ideas. You'll also likely need to put in more working hours, since you won't have someone to share the load with. 

For many people, the pros outweigh the cons -- especially because it's not always easy to find someone you want to go into business with, as this is a major intermingling of your personal and financial lives. But you'll need to carefully consider both of these advantages and disadvantages when you decide which approach is right for you.