When you get into a business partnership with someone, you need to trust them wholeheartedly. You also need to have a shared vision and goals as well as clarity over your respective duties and responsibilities as you strive to grow your business. But what happens when there is a breakdown in the relationship between the partners?
While most partnership disputes are resolved through dialogue and negotiations, a few lead to irreparable damages. As a result, you may have to dissolve the business partnership and go your separate ways. Here are warning signs that your partnership might be headed for dissolution.
Your partner’s goals seem to have changed
When a partner’s personal and business goals have changed since you entered into a partnership with them, sticking around might not be in their best interest. In this case, it makes sense to invoke the dissolution clause so each party can pursue their interests.
There are disagreements regarding important business decisions
Partnership disagreements happen all the time. That’s part of the human expereience. However, if the partners cannot see eye-to-eye on fundamental business decisions, then the partnership is bound to suffer. Unresolved differences can result in the disruption of business operations and cause losses.
There is a breakdown in communication
Communication is a vital building block for a successful business partnership. A breakdown in communication is usually a warning sign of something serious. For instance, if partnership meetings repeatedly end in arguments or when a partner resorts to writing as the only means of communication, then this could be indicative of a partnership in serious trouble.
When you go into business with a partner, you undoubtedly look forward to a long and fruitful partnership. Sometimes, however, things do not go as planned. Find out how you can safeguard your rights and interests if you find yourself in a situation where you have to dissolve the business partnership.