Sole proprietorship or partnership business. Which do you prefer?

Skysaint

Verified member
Sole proprietorship is actually a kind of business enterprise which is handled and controlled by a single individual. He takes the major decisions of the business, the actually do enjoy the profits from the business alone and obviously, bears the losses alone. He alone drafts out the strategy to be implemented while running the business. That's why most people do refer to it as "one man business"
On the other hand is the partnership business where the major decisions make in favour of the business is done by a group of individuals and often times they gain revenue by gaining more partners through shares. They share and bear the profits and losses collectively.
So in these recent times, which actually among these two seem more profitable and lucrative to run?
 

Alexandoy

VIP Contributor
I had a sad experience with a partner before although he was more of an industrial partner. That means I own the business as a sole proprietorship. It would be a big disaster if he was my business partner legally for he would have a share of the ownership. My usual advice for a start up is to own the business in its entirety so you have the full control.
 

Phabbyfundz

Active member
Sole proprietorship and partnership business are both good,but has with every other venture they both come with their individual benefits or disadvantages. But before starting or venturing into any business be it sole proprietorship or partnership you have to put into proper consideration some steps and things to consider, you must know the goals of your business what you hope or plan out to achieve with this business, your target audience ,or costumers are thing you have to know before starting any business.
 

Mika

VIP Contributor
Both has pros and cons. If you have a partnership business you might have conflict of interest with the partners, however, there will low risk factor as your partner will share the loss. Sole ownership gives you full control but you might fall short of funds, you will also have to bear all risks.
 

Nanaado1997

New member
All come with their own challenges. For me I'd start a partnership business if I'm to start one. The reason is that the work will be much lesser and it offers both of us an opportunity to grow by sharing ideas and improving things together. No two people see things in exactly the same way.
 

kayode10

VIP Contributor
I prefer to do things my way and this is the reason why I am going to choose sole proprietorship. I'm a kind of person who like to experiment different things with my business. if I go into business with someone, the partner might see this as recklessness and they might want to pull out of the business partnership. I would prefer sole proprietorship over partnership.
 

Abigael

Valued Contributor
For a small business, I will prefer to go into a sole proprietorship. This is because there is not so much work needed and so I can easily run the business alone. But if I want to go large scale, it is better to take up some partners. That way, we can have enough capital, make decisions collectively and divide labour.
 

Skysaint

Verified member
I had a sad experience with a partner before although he was more of an industrial partner. That means I own the business as a sole proprietorship. It would be a big disaster if he was my business partner legally for he would have a share of the ownership. My usual advice for a start up is to own the business in its entirety so you have the full control.
That's just the best option for a startup. I for one don't really like the idea of partnering with anyone else while doing business, it could possibly lead to anything. Moreover as a sole proprietor you have the chance to make most of your business decisions without having to involve any second party
 

Jasmine

VIP Contributor
I don't mind with partnership business because partnership business is less risky than sole ownership business (because your partner will also bear the loss if your business encounters loss). Sole ownership is little risky as you have t bear all responsibilities of managing and running the business not just bearing the loss.
 

Skysaint

Verified member
I don't mind with partnership business because partnership business is less risky than sole ownership business (because your partner will also bear the loss if your business encounters loss). Sole ownership is little risky as you have t bear all responsibilities of managing and running the business not just bearing the loss.
Well, maybe that works for you but we need to understand that even if your business partner would suffer also from the loss if ever the business you both are running should run at loss, we should also remember that they will also share in the profits if the business should make any profit. And depending on the percentage of his investment into the business, if he invested lower amount than you did then he will suffer less loss than you if the business should run at a loss and will also gain less profits if the business should make a profit.
The issue here is that the both of you may not be able to see eye to eye on some vital decisions to make and this might affect the business
 
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