When you work in a partnership, the last thing you want is to have a fight or argument over an aspect of your business. You need to work together so that you can both move your business forward and make it as profitable as possible.
While some disputes may be impossible to avoid, there are steps you can take to minimize the risk of a business dispute. Here are three ideas to help you as you set up your partnership and work toward keeping it friendly.
- Always have a partnership agreement before you start working together
The first thing to do is to make sure you have a legally binding partnership agreement drawn up by your attorney. Both parties should agree to it and sign it. This agreement should go over your roles in the business and discuss what to do if a dispute does arise. You should also include information on exiting the partnership.
- Talk about potential issues before working together and as they arise
Good communication goes a long way in preventing issues and resolving them before they become a problem. When you think you want to work with someone, sit down and talk about your goals and ideas. Discuss any areas in which you may not agree and how you’ll resolve conflicts if they arise.
Then, when a conflict does happen, you need to address it immediately. Don’t allow that problem to fester, because it could grow and cause problems for the business.
- Have a clear, defined role in the business
Finally, make sure you have a clear, defined role in your business and that your partner does, too. Are you an excellent marketer? Do they work well with money? Define your roles and take steps to avoid crossing into your partner’s area of expertise.
Be prepared for disputes to avoid the fallout they could cause
Partnership disputes can cause major problems for businesses and even end up causing a partnership to break up. Fortunately, with the above steps, you’ll minimize the risk of a dispute and have steps in place to follow if a dispute does arise in the future.
Notice: We are providing this as general information only, and it should not be considered legal advice, which depends on the facts of each specific situation. Receipt of this content does not establish an attorney-client relationship.