So you have started your business and things are moving along as planned. Then you meet someone who suggests a great way to make your business even better. They agree to tell you their great secret to huge success, if you make them a partner and give them 50 percent of your company. Do you do it? In this article we will explore some pros and cons for establishing a partnership and in the end help to answer this question.A partnership as defined by freedictionary.com as “a contractual relationship between two or more persons carrying on a joint business venture with a view to profit, each incurring liability for losses and the right to share in the profits”. According to this definition a contract is created between one or more individuals in an effort to create a profitable business venture. Along the way though, liabilities may ensue and if this occurs, then the partners are responsible. How then do you determine if a partnership is right for you?ProsLeveraging expertise: There is a saying that “two heads are better than one”. In most cases this is true. If you have someone who is just as smart as you or even smarter, then it makes logical sense that you should be able to be twice as effective creating and managing a successful business.Access to more capital: In some instances you may start a business but find that you do not have enough capital to get started. In comes your partner who is independently wealthy and shares your same passion for saving the whales or whatever business venture you enter into. Forming a partnership can give you access to the necessary funds you need to take your business to the next level.Access to bigger broader networks: So you have a great idea, but no one knows you and you can’t seem to figure out how to get the maximum exposure for your product or service. In comes a potential partner who happens to be in the “in” crowd and by “in” I mean knows all the right people. This partner could help you shorten the timeline from start-up to mass production by introducing you to their network of people and organisations.Sharing the risk: As mentioned in the definition above, a partnership includes sharing any liabilities that the partnership may incur. This can be a good thing, especially when it comes to monetary payouts. By contrast as a sole-proprietor, all business risks lay with you.Additional support: A partner can provide you with additional support, emotional and physical. Having a partner can create the feeling that someone has your back and when necessary they can pitch in and pick up the slack.ConsGiving up control: Yes, in a partnership you must relinquish some control. This is one thing many people do not want to do. However, with a Partnership Agreement, you can detail exactly how much control you give up by stipulating what percentage of ownership each partner will have.Having to answer to multiple people: In a partnership, there has to be compromise. Most entrepreneurs have a built in dial that indicates that there way is the right way, but in reality it is always good to have someone whom you trust that can be a sounding board and challenge some of your decisions to help ensure that the right choice for the business is made.Differences on direction of the company: In life there is one constant — change. With change there is also choice and in some cases partners will choose differently for the company. This can be difficult and in some cases can lead to the dissolution of a partnership.Dividing the profits: Sharing the wealth is sometimes the hardest thing to do when it comes to partnerships, but is necessary and a legal responsibility in a documented partnership. In a perfect world each partner would have earned their share of the profits, but the world is far from perfect and that leads me to my last con.Unequal participation: In some cases you may enter into a partnership where one partner does not pull their own weight. They said they would do x, y and z but in reality they aren’t doing anything.The above list of pros and cons is not exhaustive, but can give you some idea of what to consider if you are thinking about entering into a partnership. You should also consider if you would be a good business partner. Ask yourself some questions first before you decide to enter into a partnership:Do you prefer to work alone?Can you concede your idea if there is a better one on the table?Do you like sharing?When considering someone — do you have the same motivation and values regarding the business?Do your skills complement each other?Are you an open communicator?If you can answer these questions with a yes, then chances are you are ready to take the 50 percent partnership deal I referenced at the start of this article.Jamillah Lodge is a Business Development Officer for Bermuda Economic Development Corporation. She specialises in providing aspiring and existing entrepreneurs with business development advice and loan guarantee assistance. In addition, she manages the marketing and communications plan for the Corporation and oversees the development of a mentorship and youth entrepreneurship programme. She has a degree in Business Administration with a concentration in Marketing. The opinions expressed in this article are those of the writer and should serve a general guide and should not be considered as replacement advice from a lawyer, accountant or other professional service provider. Readers should consult with the appropriate professionals as necessary. If you have questions about starting a business in Bermuda, just ask BEDC: E-mail us at info@bsbdc.bm or call 292-5570.