How to Handle Business Partner Relationships
Running a business is a tricky thing that many outside of the entrepreneurial world underestimate, even though it’s common knowledge that business takes a lot of hard work and dedication. Something that many don’t account for when entering into a business partnership is the crucial importance of having a healthy relationship, trust and exemplary work ethic. While in a perfect world, all businesses succeed and the partners work together, that isn’t always the case. All too often there are times when business partners decide to split up, which some people refer to as a business divorce.
When there is a business dispute that is leading to the partners wanting to end their business affiliation, legal guidance is needed to ensure the process is handled according to law and that it is done properly. The separation could be especially difficult if the business partners involved were family or friends. You don’t want to ruin the personal relationship outside running the business, and if the business has already ruined the relationship there still may be a chance of recovering it in the years ahead after going through a business divorce.
Five Signs of a Toxic Business Partnership
There are some signs you should to watch for that might indicate your business partnership is not meant to be.
Here are a few signs that it may be time to make a major change:
1. You no longer have the same values. You must share a similar vision for the future of your business, and you need to reach an agreement for executing them. Compromising a fundamental business ideology is often a deal breaker between partners.
2. Being too stubborn can ruin a business relationship. You can’t run a business with someone who refuses to try something new or who doesn’t want to compromise.
3. There aren’t any solutions presented. You and your partner should always try to work together as a team to come up with creative solutions to resolve problems that your business encounters.
4. You and your partner don’t have equitable skills. You both need to have an equal set of skills, even if they aren’t in the same field. One of you may be good at handling the finances while the other may be better at people skills. You can tag team to get the job done.
5. And last, but not least, a lack of trust. If you can’t trust your business partner, then you cannot run a business together. There really is no way around that when the trust has been broken and your financial and business life hangs in the balance of a partner you no longer trust.
When You Realize There is a Problem
When you realize that there is a problem with your partnership, you need to try to talk to your partner and resolve the issue. If you cannot reach an amicable agreement, you may decide that it is time to end the partnership. To ensure that everything is handled properly, meaning legally and by the book, you should consult with a Texas business lawyer to ensure that the proper paperwork is filed and that everything is dealt with on the up and up.
Your partner may choose to sell his or her interest in the business. You may want to buy out your partner’s share of the business, or there could be another person that buys out your partner’s share. If someone else buys out the other person’s interest in the business, you will need to ensure the transaction is handled properly so you can then focus on building a solid relationship with them. With the right planning and effort, you can create a reliable business partner relationship that helps your business succeed.
The team at Fears Nachawati has helped all manner of business, from mom-and-pop companies to Fortune 500 companies on a wide-range of legal matters in the state of Texas and beyond. Our dedicated team is standing by and ready to help you your business succeed, despite problems you may be facing in your partnership. Don’t wait until the situation becomes more dire, contact our team today for a free, no-obligation legal consultation to discuss what we can do for you and your business.
Schedule a case evaluation with a member of our team by calling at (866) 705-7584 or by visiting the offices of Fears Nachawati located throughout the great state of Texas, including in Houston, Dallas, Austin, Fort Worth, and San Antonio.