When starting your electrical repair business you may feel that you do not want to run the business alone. One way to run the company could be with a sleeping partner.
What is a Sleeping/Silent Partner?
Do you want to run your business alone or do you not have the confidence to do this? If you need a business partner to help run the day to day business then a sleeping (or silent) partner would not be best for your business. A silent partner puts in all or a large part of the start up finance but then has no interest in the everyday running of the business. You may find that you are better with a partner who knows your trade and can take some of the weight off your shoulders rather than leave you with the sole responsibility. However, if you want to be a free agent then perhaps a sleeping partner is for you.
Finding the Finance
There are several ways to obtain finance for your new business. Your bank may be able to arrange a loan or remortgage your home. There may also be Government start up grants for your area or type of business. You may also have a friend or colleague able to loan you the funds for a short period. But for some people there is not a bank or person who is able to fund your business start up and you will have to look for a sleeping partner.
Family and Friends
Do you have a parent or relative who would like to support your business venture? Sometimes it is possible within families to arrange finance for a new business. The member of your family may not know anything about your trade but still wants to support your new venture. In this situation your family member would make an ideal silent partner. It may be that they are retired and have money to invest or simply see you as a good investment and want to partner you in your new venture without having to get involved with the actual work.
Control of the Business
Having a silent partner means that you can keep control of your new electrical repair business but have the knowledge that you have financial backing for you venture. This does come at a cost when you realise that you do have to share the profits from your hard work with your silent partner.
Finding a Sleeping/Silent Partner
If you do not have a member of your family, a friend or a colleague to invest as a silent partner then you may need to look elsewhere for an investor. Speak to your bank manager and also your accountant as they will have contacts within the business world for people who wish to invest in a business without getting involved in the day to day affairs of the business. You will have to report more often to your partner with accounts figures and your plans as no investor is just going to hand over money and then leave you to spend it however you feel free.