People often begin business partnerships with individuals whom they know and trust. It is common for family members, close friends and those who have worked together for years to start companies together. They often trust that their pre-existing relationship will help them overcome any business challenges they might face in the future. Unfortunately, partnership disputes can arise even when someone has always had a close relationship with the person who helped them start an organization.
These are some of the ways in which people can more effectively protect the business in which they have invested so much while going through a dispute with a business partner.
Review and uphold partnership agreements
Ideally, there will be very clear rules for handling disputes in a pre-existing partnership agreement. One partner can schedule a mediation session or a facilitated conversation with their partner in the hopes of resolving the issue. Unfortunately, those who already have a solid relationship with a business partner sometimes fail to include the best and most protective terms in their partnership agreements. They may therefore struggle to know the best way to resolve the dispute while protecting the company.
Document matters to prove what has happened
A partnership dispute may result in a buyout or the forced removal of one partner from the company. If people worry that embezzlement or other misconduct will affect their organization’s future, they will generally need adequate evidence to convince the courts to take action or force a partner to sell. The more documentation one partner has to affirm their position in a dispute, the better their chances of prevailing should the matter end up in civil court.
Seek to resolve the issue quickly and amicably
A dispute with a business partner can lead to intense interpersonal conflict that affects people in their personal lives and how the company operates. Workers and others involved in business operations may be able to sense the tension. Trying to keep the matter out of the workplace and seeking to address issues as quickly as possible are often key for those who want to protect the company from the fallout of a dispute with a business partner. It can be difficult for people to approach these kinds of conflicts rationally and appropriately because they have so much to lose. They may need support to develop their case and protect the organization.
Finally, seeking legal guidance can make a major difference for those trying to preserve the interests of an organization during a dispute with a business partner.