A partnership may enable you to draw upon the strengths of another professional to develop and expand your business idea. Like any relationship, you may experience bumps and challenges along the way.
Even if the other person is someone you fully trust, having mutually agreed upon legal objectives can reduce the risks of costly disputes.
Governing contracts
A well-written contract can go a long way in protecting individuals and the business in a partnership. According to Entrepreneur, some common reasons for partnership disputes include the following:
- Differences in beliefs
- Lack of trust
- Misaligned objectives
- Personal challenges
- Irresponsible performance
You can use your contract and other governing documents to address solutions for handling disagreements or conflicts. An attorney can help you phrase expectations in a manner that clearly outlines individual responsibilities. You can also include disciplinary procedures for non-compliant behavior.
Mutual accountability
From the onset of the partnership, hold each other accountable. Keep the lines of communication open and commend each other for a job well done. If you notice your partner not upholding formerly agreed-upon expectations, express your concerns. Identify whether a misunderstanding has triggered a disconnect between you and your partner.
If a dispute appears to have exceeded the point of repair, you may need to hire an attorney to represent you and advocate for your rights. If not carefully addressed and in a timely manner, an ongoing partnership dispute could undermine your company and jeopardize its success. Taking a cautious approach in how you handle conflict may enable you to reach a solution before things take a turn for the worse.