Partners are often excited about their company’s prospects when they initially go into business with one another. They’re usually not prepared, however, to handle all the responsibilities of being an entrepreneur, and conflicts may arise.
If you have a potentially difficult situation on your hands with your business partner, there are steps that you can take to try and resolve the differences you are having.
Common issues that business partners fight about
Differing perspectives on operational matters often lead to conflicts among business partners. Issues can arise as early as when both parties sit down to discuss how to co-manage their company. Bringing a third-party such as a moderator or a silent investor into the mix may help the two make more effective decisions when impasses arise.
It’s not uncommon for entrepreneurs to struggle with self-direction once they start their company. Many are used to being told what to do, instead of directing things. Motivation issues such as these often lead to one partner accusing the other of not having done their fair share of the work. Sometimes all it takes to sort things out is a sit-down and a clear conversation about who has what business responsibilities. Sometimes one partner will simply accept a greater share of the work — albeit with more compensation.
What happens when business partners can’t amicably resolve their differences
Conflicts have a way of spiraling out of control if partners don’t address them early on. One of you may decide to take on a non-managerial, shareholder role in your company if you can’t reach a consensus about running your business. You may also decide it’s best to dissolve your partnership. Asking a court to intervene is also an option, although that’s generally the last place most business partners want to go.
If there’s one detail that you should know about operational disputes, you should try to sort them out soon after they arise. You may have to pursue litigation if you don’t. Doing so can be very costly. A commercial law attorney can help you negotiate with the other side here in Louisville with the goal of resolving matters as quickly and cost-efficiently as possible.