A business partner disagreement can quickly derail your company’s goals, leading to a loss of revenue or even the end of your business. Constantly getting into battles with your business partners isn’t good for employee morale either. The best way to prevent a business partner disagreement is to address the common causes before they start. Here’s how to do it.
Get Everything in Writing
Memory is selective, and you could be setting yourself up for a major business partner disagreement if you don’t put everything in writing. What may seem perfectly clear to you may be confusing or unclear to your partner. Hashing out the details while you put everything in writing can help prevent misunderstandings. It also gives you a document to reference if a disagreement comes up later.
It’s important to institute this policy from the start. When planning your company’s goals or conducting monthly staff meetings, make a note of everything you and your partner discuss. This way, you can transcribe your notes later on to produce official documents. You and your partner should both agree on the content of any documents before dispersing them to your team.
While it may not seem like that big of a deal, taking the time to work through all of the details in advance can prevent uncertainty later on. Confusion is often at the heart of a business partner disagreement, so it’s in your best interest to be as clear and direct as possible.
Commit to Communicating
Proper communication can prevent a business partner disagreement before it starts. You and your partner are both adults, so you should have no trouble talking through any issues that arise. When discussing sensitive topics, do your best to keep a cool head. Yelling isn’t constructive and won’t help solve any problems. Keep your company’s best interests ahead of your own and ask that your partner does the same.
If you find yourself getting upset in the heat of the moment or if you feel like you’re being put on the spot, it’s perfectly acceptable to step away from the conversation. Let your partner know that you need a little time to come up with a response or solution. This can help avoid a business partner disagreement in the heat of the moment. Don’t forget to put the results of any discussions in writing!
Have an Exit Strategy
Of course, no one likes to think about the demise of their business, but it pays to have a strategy in place just in case. This way, you won’t get into a business partner disagreement over who owes this or is responsible for that. All of this information will already be clearly spelled out in your exit strategy.
The best time to come up with your escape plan is well before you need it, preferably before your business even gets off the ground. Outline each partner’s financial responsibilities and ownership percentage. Include provisions for one partner choosing to leave while the business is still operational.
When your business is thriving, you’ll have a much clearer head about the stressful issues that might arise in the future. This calm, rational approach can help you avoid a business partner disagreement as you discuss future plans.
Get Your Partnership Documentation in Order
Whether you’re just starting your business or you’re well on your way to success, Ogborne Law is here to help you. We offer:
- Business contract drafting or review
- Business strategy review to make sure you aren’t missing any important legal documents
- Flat-fee packages with customized legal documents
- Mediation services to resolve disputes
- Statutory agent services
Before you even think about starting a business partnership, contact Ogborne Law. When you’re ready to get started, let’s talk so we can determine how we can help protect your business from the unknown.
Engaging with an attorney to protect your family is never an easy step. Whether you need to protect your family from the unthinkable or restructure your family through collaborative divorce, we’re here to help. When you’re ready to schedule a consultation with Michelle Ogborne, please visit the scheduling page to get started.