I didn’t want to share. Not the upside. Not the decision-making. And definitely not the credit.
Sometimes you need a partner.
Most times, you don’t.
That’s not a philosophy. That’s a scar.
When I bought my first company, I didn’t bring in an equity partner. Not because someone handed me a check. Not because I hit the Powerball. I just saved like hell, ran lean, and found a deal that fit the meager amount I could pull together for an SBA loan.
That wasn’t luck.
That was discipline.
And I’m glad I did it that way.
Because once you bring in a partner, they’re not temporary. They’re equity. And equity doesn’t disappear when you scale—it compounds. So do the headaches.
The Deal Fit Me Because I Built It My Way
The first company I bought—commercial pool service—came with all the usual limitations of a legacy business:
- A seller who had strong opinions but no growth plan
- Refusal to expand offerings
- No interest in vertical integration
- No playbook for scale—just habits
I respected him. But we didn’t see things the same way.
And that was fine—because it was my business now.
When I bought the residential company, people laughed when I said I wanted to blend the two. “Totally different animals,” they said. And they were right—partially. But that tension is exactly what made us attractive to a buyer down the road.
We became the bridge no one else was willing to build.
And I could make those calls—because I didn’t owe anyone permission.
Equity Isn’t Just Expensive—It’s Sticky
Let’s be clear: equity isn’t free. It costs you control, flexibility, and optionality.
Even the quietest partner has influence. And once you close, their role almost always shrinks while their expectations grow. They’re not in the field. They’re not hiring. They’re not solving customer problems. But they’ll absolutely want a seat at the table when you’re profitable—and a say when you’re not.
And if things go sideways?
Good luck aligning on strategy when someone else owns 20% and wants out.
Dead Weight with Voting Rights
Unless your partner is active in the business—and I don’t mean lurking on Slack—I mean actually building value day to day—they become dead weight the minute the deal closes.
And the longer you wait to buy them out, the more expensive and complicated it gets.
The cap table you sign at closing isn’t a handshake. It’s a legal contract. So if you’re bringing in a partner just to close the gap on funding—pause. There might be other ways.
- Seller note
- SBA with a seller holdback
- Revenue-based loan
- Short-term bridge
- Raise debt, not equity
Even if you give up a little speed, you keep your control. And in this game, control is what lets you build with clarity.
There Are Good Partners
Let’s be fair. I’ve worked with investors and advisors who were incredibly valuable—sharp, engaged, aligned. But they were rare. And they came after the traction, not before it.
So here’s the test:
If the partner you’re considering isn’t bringing capital, customers, or capabilities—and isn’t someone you’d trust to run the place for a month while you disappear—don’t do it.
Find another way.
Final Word
Buying a business is hard. Doing it alone is harder.
But taking on a partner just to feel safer or get across the funding line? That’s not a long-term play. That’s debt with a face.
Ask yourself:
- Do they make the business better after closing?
- Can you live with their name on the equity stack five years from now?
- Are you giving up control to solve a short-term problem?
If the answer’s no, do it your way. Save longer. Look smaller. Get creative with the stack.
Because once you give up equity, you don’t get it back.
And when you do the work, take the risk, and carry the weight—you should be the one who calls the shots.