Business partnerships may be long-term or short-term. The successful ones include owners who have a solid understanding of each partner’s strengths, trusting their decisions and market knowledge.
However, in some instances, one of the partners chooses to leave the company. Maybe it is to strike out on his or her own with a new vision, or because the partnership floundered and their differences got in the way.
Have an operating agreement
Disagreements are not uncommon among business partnerships, but you want to make sure those disagreements do not transform into disputes.
Here are some tips that may help you fend off any potential business disputes:
- Know and understand your business partner: Bring on board a partner whose strengths differ but complement your own. Knowing these differences from the start are bound to translate into a solid and effective team. Regular communication is crucial.
- Forge an agreement on expectations and accountability: This is about values, and, though, it is not a legal document, it creates a blueprint of values related to the business partnership. This agreement may address each partner’s obligations and how differences become viewed as strengths.
- Create a dispute resolution plan: Doing so may curtail any chances for a dispute to arise.
- Have clear legal agreements in place: This includes a signed operating agreement, explaining the roles of each partner and compensation, along with the terms and conditions applicable to the departure of an existing partner or admission of a new partner.
Following this advice may help your company achieve success and may also lead to a thriving business partnership.
Making a business partnership work
The right business partner often is the difference between a successful company and a failed one. Do your best to make that partnership work. That way, you and your business partner can enjoy the fruits of your labor.