Are you worried that your business partner might cause a dispute that could create serious problems for your company? It can be helpful to identify red flags in advance so that you know how likely this is to happen. Doing so can help you to potentially avoid the dispute or can help you to deal with the fallout proactively if a dispute does occur.
Of course, every partnership is different, so the red flags you may look for are relatively unique to your situation and your company. With that said, there are a few concerns that serve as universal warning signs that one partner should keep an eye out for issues related to the other that could be concerning.
You have different visions
First of all, you might have a different vision for the company or a different mission that you want to accomplish. Maybe you’re looking to create a company that provides necessary services for the community, even if you don’t maximize your earnings. But your business partner is only concerned about the bottom line, far more than the community. You may feel that you are working against each other as a result of these unique approaches.
You don’t communicate very well
If the two of you can’t communicate well, your situation is bound to cause disputes. Miscommunication can lead to disputes over finances, business decisions, branding choices and much more.
You have different views regarding your roles
If you both view your position within the company differently, that can also be a problem. For instance, maybe you both want to make creative choices or maybe you both think you have the final word when it comes to product designs. Similarly, perhaps you feel like your partner isn’t taking much responsibility because they’re putting it all on you. Either way, you clearly view your roles differently and that can lead to tension.
Finally, there are certainly many business partnerships that fall apart over financial problems. Perhaps your business partner refuses to invest as much money as you have and it causes problems. Or maybe your business partner is taking more of the company’s income than you are, so the division of assets or earnings doesn’t seem fair.
Are you prepared?
If you see these red flags, it could mean that a serious partnership dispute is on the horizon. You need to know what legal steps you can take to protect your business, your livelihood and your professional goals for the future. Seeking legal guidance proactively – instead of reactively – may be an effort that is well worth your while.