As your company grows, its structure may start to change. You might no longer be able to juggle client meetings, process orders and manage customer relations on your own anymore. At this point, you may decide to look for some assistance in the form of a business partner.
Finding the right person can be extremely exciting and profitable for your company. Unfortunately, things don’t always go to plan and disputes can arise between you and your business partner. Recognizing some of the more common causes of disputes between business partners could help you to prevent them.
Confusion over responsibilities
You have gone from being your own boss to recruiting someone who operates at the same level. This could be confusing both for you and your staff. Your employees may not know who to turn to anymore, or who to seek approval from before making big decisions. If you do not clearly define your roles and responsibilities from the offset, either you or your partner could begin to feel isolated and pushed out. Think about the strengths and weaknesses that you both bring to the table, and define your duties accordingly.
Money and financial worries are the sources of many disagreements. Ultimately, the aim of both of you will be to maximize profit. You might like to keep the books completely up to date while your partner has a more lax attitude toward bookkeeping. One of you may believe that being more frugal is the root to further success, while the other forms a contrary opinion that more investment is needed. To avoid conflict, it is important that both you and your business partner are able to talk honestly and openly about finances, so that disagreements can be ironed out promptly.
Business partnerships can be a success but it is important to nurture them. If you are tangled up in a dispute that has no prospect of being resolved, be sure to explore your legal rights.