Starting a business with a partner provides you with a great opportunity to leverage someone else’s skills, knowledge, and work ethic for the greater good of the company. A partnership is great because you can both work together to achieve great things. Collaborating and open communication is key to any successful partnership. Unfortunately, conflicts often arise between business partners that can have lasting impacts on the business. Don’t let a partnership dispute derail your entire business. Instead, read this article and learn about some of the best ways to prevent partnership disputes. If you are dealing with a partnership dispute or would like expert legal advice, contact Derryberry & Associates LLP today.
1. Don’t Let Issues Linger
One of the keys towards preventing partnership disputes is to take care of issues and disagreements as soon as possible instead of waiting as long as possible to address them. It’s also better to take care of issues before you get too involved in the business. Any issues you have should be addressed as soon as they come to light. Letting disagreements and issues linger over time can lead to even bigger problems.
2. Make Sure You Have Everything Written in an Agreement
After you decide that you are interested in a partnership, make sure you have a written agreement in place. This agreement should be as specific as possible about control, each partner’s role, the duties and obligations of the partners, how compensation is handled, and any capital contributions that will be made. It will also provide details about what happens in the event of a disagreement and dissolution of the business. You should hire a great business lawyer like the attorneys at Derryberry & Associates LLP to handle your written partnership agreement.
3. Focus on the Solution
People disagree. It’s a fact of life that must be taken into account when you enter into any business partnership. You will have to deal with a disagreement at some point during a partnership. How you deal with the dispute will define your business. Sometimes having a simple conversation with your partner about the issue can be very productive. If you are speaking about a partnership dispute, try to focus on the solution and not so much on the problem. It’s easy to point fingers or place blame on others, but staying committed to actually finding a solution is what your energy should go towards.
4. Go Separate Ways if Necessary
With a partnership dispute, sometimes the best resolution for both partners is to go your separate ways. It’s better to dissolve a partnership than to suffer through a strained business relationship for years. You should definitely try to resolve a partnership dispute in any way you can prior to taking this step, but keep in mind that you can always walk away from a partner if you need to.
If you are seeking legal advice about partnership disputes, reach out to Derryberry & Associates LLP today.