Lack of goal congruence - What are the probability that two unique individuals will have the same goals over an extended period of time? One of the partners could be more interested in making money with the business while the other partner views it as a profitable hobby. Goals changes over time. As the business grows, so do the two partners involved. Once some time has passed, one of you may start to view objectives differently. It’s surprising how much goals and views can change over time. The scary thought is that you both might want to go in totally different directions with the business.
Greed getting in the way - Humans have moments of greed. Even the kindest and friendliest folks will feel a strong sense of greed at some point. When you go into business with a good friend it doesn’t mean that you’re completely protected. It’s always advisable that you get everything down in writing and that a third party is witness. You just never know when greed can become a factor in the business partnership.
One of you working harder - When you’re up late at night working on the company while your partner is not. This can become a major issue. The next issue revolves around deciding what to do when one of the business partners isn’t working as hard. Do you pay that person less? What if they don’t agree to a pay cut? This is a major issue that you need to decide on as you and your business partner put your plan together.
Decision making process issues - When your business is making no money the decisions are pretty straight forward. At that point the both of you are just excited about growing the company. All you can both think about is the idea of your business hitting it big one day. When large contracts and colossal clients come your way. The decision making process will drastically change at this point. One partner might want to expand while the other business partner is more conservative. Decision making can also get awkward when a boss-employee relationship starts to slowly form between the business partners. How will you make business decisions with your future partner?
External forces - The two business partners might get along well when together, but anything can happen once external forces get involved. What if one of the partners ends up in a relationship with a controlling person? What if one of the partners wants to bring in a third person into the business? Dual business owners is what happens when third parties get involved and start trying to get some input on the business and the future direction.
Exit strategy - Leaving the business is a topic that nobody wants to discuss. The reality is that at one point many other opportunities will come along. A potential buyer can get involved. A new business venture will come along. The work load of the business can become too tedious and one of the partners might want to get out. What will the exit strategy be? How will the two of you decide on exiting the business?
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