As with any close relationship, disputes can arise between business partners. When this happens, it can significantly affect business and, sometimes, may have an adverse effect on your bottom line. At The Jackson Law Firm, people often ask how they can avoid partnership disputes. As such, we will discuss some tips for how to handle disagreements between business partners.
If you and your partner are having a dispute, one of the first things to do is to determine what is at the root of the issue. Sometimes, such disagreements are related to business and operations matters. In other cases, the issue may be associated with other, personal issues. Before you can begin to work through such matters, it is important to determine what exactly is causing the dispute.
Once you have determined what is causing your partnership dispute, you should determine whether you can work through the issue. Correcting flaws in your business plan or increasing revenue may be dealt with. On the other hand, you may not be willing to work through such issues as dishonesty, theft and other illegal activities.
Regular communication is also helpful in avoiding partnership disputes. This includes talking about the day-to-day operations, and other business-related matters. It is also advisable to regularly review your financials. Doing so may help you to identify potential issues before they turn into disputes that may impact your business’ operations.
Perhaps the easiest way for you to prevent disagreements with your business partner is to have a well-crafted partnership agreement. These documents often stipulate each partner’s duties and responsibilities. Additionally, they may include specifications as to how disputes should be dealt with.
For more information about business litigation, please visit our partnership and shareholder disputes page.