A business partnership is somewhat like a marriage. When the two partners are on the same page about business decisions and other important matters, it can be a good and lucrative union.
But when the two have wildly disparate and divergent ideas and plans for their enterprise, the partnership can go south in a New York minute. Below are four of the most common business disputes that lead to big problems.
1. The partners’ visions differ dramatically
You may be content to be a big fish in a small pond here in your Las Vegas community. But your partner is chafing at the bit to expand nationwide to the East Coast. Regardless, the two of you are not on the same page at all regarding your company’s future.
2. One partner fails to carry their weight
Maybe your partnership agreement divides up the daily oversight and management tasks 50-50. Yet you still wind up doing 70% of the work. Over time, resentment continues to build until there is open conflict over the perception that your partner is shirking their responsibilities.
3. Company assets get misappropriated
If every time you see your partner they are wearing another nonpurchased item from your summer menswear collection, eventually that’s money that is not being funneled your way. Whether it’s laptops or linoleum, the company assets are not solely theirs.
4. They turn off your clientele
Your business partner might just not be a so-called “people person.” But if their role requires them to interact with customers and they fail miserably, you are never going to turn a profit if your clientele beats feet going out the door.
Resolving a business partnership fail
Ideally, your partnership agreement has a detailed exit clause that you can use to extricate yourself from a failed partnership. But sometimes, you may need some legal assistance to resolve the dispute. Seeking help sooner rather than later is generally the best course.