You started your company on your own and as things progressed you enlisted the help of experienced individuals. Your business partner was key to this process, and they’ve brought many valuable skills to the table.
Unfortunately, running a business does not always go smoothly and disputes can arise between business partners. How do these disputes happen and what can be done to resolve them?
Have contracts in place
Your business partner is likely to be someone who you trust dearly. This can often lead to a temptation to skip formalities such as employment contracts and partnership agreements. Generally, this is never a good idea, no matter how much you trust your business partner and vice versa. Having contracts in place ensures that all parties know exactly where they stand. Importantly, contracts can also contain provisions that outline how disputes should be resolved if they arise.
Ensure all voices are heard
Partnership disputes are often born out of pure frustration. Your business partner may feel like their ideas are not being implemented or even listened to. When it’s your own business, it’s very easy to want to control every decision, even the smaller ones. Remember, you have enlisted help from team members for a reason. They have the necessary skills to carry out delegated tasks. Listening to your business partner on a regular basis will help them to feel valued and could reduce the chances of conflict arising.
If you are currently caught up in a partnership dispute then it’s in your best interests to resolve it quickly. Having legal guidance behind you can help you make this happen.