Sole proprietorship and partnership which one is better?

[Hasan Raza]

My dears I am going to start a small business and my two friends are saying me to do partnership with them. But I don't know what I say to them because I couldn't protest to them. So please guide me what I do now??

 

[Briangsam]

With sole proprietorship, you get to input all the capital, make all the decisions, get all the profits and as well as face all the loss alone. But with partnership, everything is shared which includes the profits and the risks.

 

[Godleads1]

Sole proprietorship is a business run by one person. While the partnership is joining of hands to begin a job. To me, partnership is better because it will allow for debate before a decision would be made making it better than a sole proprietor who can take any step or decision

 

[Sariana23]

If you plan to start a business and want to do it alone, I do not understand why you say you cannot protest. If you do not have the authority to make decisions, I think you will not be well as the owner of that business. Now if you consider that you must create such a company in society due to lack of resources, you must give them the opportunity, always putting your clauses and agreements in writing and legally.

 

[Odebunmi ajewamiri]

Both as it advantage and it disadvantage , for me I will vote for sole proprietorship where I put in my capital have my profit toy self and bear the lose of the business myself I get to make decision that will profit my business without interference .

 

[Erik4150]

Sole proprietorship is good and so is partnership. They both have their advantages and disadvantages. With partnership the issue of insufficient capital is easily solved but decision making is the responsibility of the group of partners not one person. But with sole proprietorship, you can run your business anyhow you want. Just find out which one suits you best and go for it.

 

[Zubair]

My dears I am going to start a small business and my two friends are saying me to do partnership with them. But I don't know what I say to them because I couldn't protest to them. So please guide me what I do now??

First of all it depends upon the type of business which you are going to start, that if you are going to start a business in one place with different products, you can give space to your friends too. But if you are going to focus on a specific product, then I would suggest you to start a solo business. It would be better for you and your friends too.

 

[Hasan Raza]

First of all it depends upon the type of business which you are going to start, that if you are going to start a business in one place with different products, you can give space to your friends too. But if you are going to focus on a specific product, then I would suggest you to start a solo business. It would be better for you and your friends too.

Good suggestions dear. Actually I am going to do multiple in a single shop like cosmetics, jewelry, baby garments, school and college uniform centre and sports items. So I also think to give space to my friends. Because they are trustable.
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Sole proprietorship is good and so is partnership. They both have their advantages and disadvantages. With partnership the issue of insufficient capital is easily solved but decision making is the responsibility of the group of partners not one person. But with sole proprietorship, you can run your business anyhow you want. Just find out which one suits you best and go for it.

Yeah definitely in partnership the capital problem solved easily. And you talk about decision making so my friends are like my brothers and they will never go against my decision. If i do partnership with them my capital problem really solved and i can do easily multiple products task.

 

[Zubair]

Good suggestions dear. Actually I am going to do multiple in a single shop like cosmetics, jewelry, baby garments, school and college uniform centre and sports items. So I also think to give space to my friends. Because they are trustable.
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Yeah definitely in partnership the capital problem solved easily. And you talk about decision making so my friends are like my brothers and they will never go against my decision. If i do partnership with them my capital problem really solved and i can do easily multiple products task.

Of course then they should be given space in your business, because it would become tough for you also to manage so many products at once. So it would be a wise decision to involve them. Shop with multiple Products attracts the customers more, so it would give you some other advantages regarding to sales of products.

 

[EMMANUEL]

A sole proprietorship is a one-man business which all the risks and responsibilities are in the hands of the owner, the decision can be made at anytime. talking about the issues with your friends wanting to partner with you in the business?

First my question to you is that are does you friend have an idea of particular business at hand?
How far are they willing to contribute into the business?
What kind of partner do they want to be? Active , Dominant, sleeping partners ?

Try to compare their response to yours if their ideas is okay and accpetable by you go ahead with a sharing profit ratio.
If your intention is to owns your business all by yourself, i guess you scare them the amount ideas youhave towards you business and make a drastic and unfavourable profit sharing ratio based on you impart as anactive partner.
always make up Deed of partnership which is very essentials in all partnership business, its and agreement document that state and a business.

 

[Setfragil]

I will advise you start as a sole proprietorship. If things work well as planned, you can just continue to run your business your own way. If after running it for sometime and you think extra hands can make a huge difference you can then go for partnership with your friends but make sure that a legal document is prepared to backup your agreements.

 

[Bilal0087]

My dears I am going to start a small business and my two friends are saying me to do partnership with them. But I don't know what I say to them because I couldn't protest to them. So please guide me what I do now??

I believe that a partnership business can grow more faster and better, because in this more than one mind is involved to think and work for business growth and progress. You can make partnership but only with hard working, honest and trustable people.

 

[chicnthin]

You should be able to say your piece as early as now. When you say that you cannot protest to them makes me think that you should not go into partnership with them. There's a lot of decisions to be made when running a business and that requires each others opinion about certain matter.

 

[Sehrish]

A sole proprietorship literally means a single owner. It can only be owned by 1 person. And as such the debts, credits, assets, and liability fall to that single individual. The sole proprietorship can't own assets, debit, credit, or liability separate from the individual. In essence the business and you are the same thing and everything is your personal property. So technically NO the sole proprietorship can't hold multiple businesses.

 

[Adetayo100]

sole proprietor is only one person and is limited to money he can invest in the business, loans from family and friends and third-party credit. Partnerships enable you to share the financing and operational burden. You give up equity in your business, but you gain additional resources together.

 

[Hasan Raza]

Yes you said right that in partnership there are more persons to take s decision and that is much better. With all this your liabilities are also convert to all the partners rather than only one. The profit also increase.

 

[Sake]

Both have their own advantages and disadvantage, if you go solo you don't have to get approval on anything you want to change and do your business, you partnerships your ideas may clash with each other however you have someone to share for the capital and wuen there's a problem it will be easier to think of the solution because there's 2-3 of you.

 

[mubinadaddy]

If you have the capital and ideas and you are sure that you are capable of running the business then go for sole proprietorship but if you don't have all the requirements then is better you go in with partnership with them in other to make your business strong and viable, and it will also last longer and all the risk will be shared almond yourself.

 

[Draysongz]

Partnership is better than sole proprietorship. In a partnership business, both parties bear the losses together, thereby reducing the amount of losses on individuals. In a partnership business, decision making are discussed, drastic measures or decisions are not made. If you're a sole proprietor, there are sometimes you get frustrated and ended in business, and you can't discuss with anybody.

 

[Frank]

Both as it advantage and it disadvantage , for me I will vote for sole proprietorship where I put in my capital have my profit toy self and bear the lose of the business myself I get to make decision that will profit my business without interference .

There are some partnership businesses that are better than sole proprietorship. If you are going to partner with someone that has a lot of money and is willing to do all he can to make the business work, then why not give partnership a change? Look at it from this angle to understand the benefits.