• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military

2

'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032

3

Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there

1

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military

2

'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032

3

Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
Commentary

5 Tips for Starting a Company With a Partner—and Not Regretting it

By
David Nilssen
David Nilssen
and
Bethany Cianciolo
Bethany Cianciolo
Down Arrow Button Icon
By
David Nilssen
David Nilssen
and
Bethany Cianciolo
Bethany Cianciolo
Down Arrow Button Icon
December 21, 2016, 8:30 PM ET
Coworkers analyzing data on digital tablet on desk
Two smiling coworkers analyzing data on digital tablet on desk in officeThomas Barwick—Getty Images

The Entrepreneur Insiders network is an online community where the most thoughtful and influential people in America’s startup scene contribute answers to timely questions about entrepreneurship and careers. Today’s answer to the question “What are the benefits of starting a company with a partner?” is written by David Nilssen, CEO and co-founder of Guidant Financial.

Choosing to work with a business partner shouldn’t be taken lightly. Owning a business can be a deeply personal experience, and for entrepreneurs who have a specific vision and enjoy being in the driver’s seat, having a partner may not be the right choice. But for me, it has been greatly beneficial, not only for my company, but for my personal growth as a leader.

The best piece of advice I can give is to treat a business partnership like you would a marriage. You want to choose someone who balances out your strengths and weaknesses, someone you trust and respect, and ultimately, someone with whom you want to share both the positives and negatives of owning a business. Here are a few considerations to keep in mind:

Partner to balance your strengths
When choosing a partner, it’s important to find someone who balances out your strengths. Every high-performing team has a producer, innovator, stabilizer, and unifier—all necessary for the business to thrive. Most people only shine in two of these four areas, so by finding a balance of all four between yourself and your partner, you can ensure your team can handle anything that comes your way and excel at doing so.

In general, I have a great vision for where we can take Guidant Financial. I can see how, by leveraging technology and services, we can help more entrepreneurs find funding to start or buy a business. I know why we do what we do and where we want to go. But, defining how we get there and when particular projects should start is not my greatest strength. But it is my partner’s. He’s unique in his ability to see the big picture and break it down into digestible compartments/projects—helping us eat the elephant “one bite at a time.” That balance in our strengths has helped us go further faster.

See also: Why Starting a Company Alone Is Never a Good Idea

Partner because you can’t afford to hire
In many successful partnerships, I’ve seen the technical “founder” partner with someone because they couldn’t afford to hire them. In this case, equity in the business and partner status provided enough value to attract the outside individual to join the team, allowing them to work together without overspending.

Partner to challenge yourself
I also believe it’s key to find a partner you want to “battle with”—someone who will challenge you and who will add unique value. They say it’s lonely at the top, and when you’re running a business by yourself, it’s very easy to think single-mindedly. However, partnering with someone who pushes you and challenges you to think differently will help keep the business moving in the right direction.

Invest in your personal relationship
Business partners spend so much time working together intimately that it’s also important to nurture your personal relationship. It’s easy to get distracted by the business and grow apart. Invest in the relationship to keep it aligned, and your business values will follow suit. I strongly encourage working with a business coach for support.

Make a contract
Avoid being 50-50 ownership partners whenever possible. At the end of the day, there needs to be one final decision maker. Very few partnerships can survive the complexities of having equal shareholders in the business at the same time.

 

Let’s say one of you wants to raise prices or acquire a company. Unless there is consensus, a 50-50 partnership could result in a stalemate, meaning no decision gets made. This can lead to resentments that can become corrosive to the partners.

It’s also important to have a partnership agreement from the get-go. It’s much easier to define early on how you’ll separate, should you need to. I’ve seen friendships blow up, businesses hurt, and families impacted by not having a business “prenup” in place. My partner and I have one in place, and we both believe it’s necessary.

Ultimately, having the right partner can be the reason your business succeeds. Spend the right amount of time deciding who you want to team up with and how you can keep your partnership healthy. I’ve been lucky enough to partner with someone I also call a friend, and as our business has grown, so have our families. By supporting each other personally and in business, we’re also able to enjoy the real reason we go to work each day.

About the Authors
By David Nilssen
See full bioRight Arrow Button Icon
By Bethany Cianciolo
See full bioRight Arrow Button Icon

Latest in Commentary

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Commentary

tim
CommentaryAirline industry
Merlin CTO: autonomy can rebuild the foundation of aviation — and national security
By Tim BurnsJune 9, 2026
22 hours ago
dewar
CommentaryLeadership
I founded McKinsey’s CEO practice: Here’s why operational excellence is a liability right now
By Carolyn DewarJune 9, 2026
22 hours ago
250
Commentary250 Years of Innovation
America turns 250. Its greatest innovation was never a product — it was a system that let anyone build one
By Keith KrachJune 7, 2026
3 days ago
retirement
CommentaryRetirement
Retiring at 62 costs the average American $250,000. Here’s the math (and the neuroscience) that explain why
By Jon SabesJune 7, 2026
3 days ago
da
CommentaryIPOs
The short seller’s argument nobody on the coming mega IPO roadshow wants you to make
By Bhaskar ChakravortiJune 7, 2026
3 days ago
bs
CommentaryCalifornia
I’ve sold property on California’s Central Coast for decades. The buyers chasing ranch and winery estates are after more than a lifestyle
By Lindsey HarnJune 6, 2026
4 days ago

Most Popular

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military
Asia
Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military
By Kate O'Keeffe and BloombergJune 8, 2026
1 day ago
'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032
Economy
'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032
By Nick LichtenbergJune 9, 2026
17 hours ago
Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
Success
Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
By Preston ForeJune 8, 2026
2 days ago
Trump, who has repeatedly called climate change fake, is now threatening Brazil with tariffs over the deforestation of the Amazon
Environment
Trump, who has repeatedly called climate change fake, is now threatening Brazil with tariffs over the deforestation of the Amazon
By Sasha RogelbergJune 8, 2026
2 days ago
Current price of oil as of June 9, 2026
Personal Finance
Current price of oil as of June 9, 2026
By Joseph HostetlerJune 9, 2026
21 hours ago
Current price of oil as of June 8, 2026
Personal Finance
Current price of oil as of June 8, 2026
By Joseph HostetlerJune 8, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.