How to Resolve Business Partner Disputes
Having a business partner can be a great help when you need to make tough decisions and want someone else’s opinion. But having a partner can also be a real headache when they turn everything into an argument.
How do you resolve these disputes without getting all angry and stressed out? The first step is to try to figure out why you are having constant disagreements. Is it something you are doing or saying?
Know that successful business partnerships are based on mutual respect. Hopefully you and your partner both want what is best for the business. Here are some actions to keep in mind.
Create a Partnership Agreement
Now’s the time to have a partnership agreement in place. The goal of a partnership agreement is for all partners to understand their rights, obligations, and legal protections.
Every partnership agreement is different, so it’s a good idea to have a knowledgeable attorney guide you on executing an agreement that fits your business. The agreement should contain information such as:
- The responsibilities of each partner
- Each partner’s capital contribution requirements
- How each partner will be compensated
- The decision-making processes and possible dispute resolution methods
- How each partner can exit the partnership
Make Notes
Get a basic notebook and document all your disagreements. This is helpful in determining what is causing your disagreements, but try to stick with facts. How was the conversation brought up? Who said what? How did it end? Business partners need to learn how to talk to each other. Pay attention to how conversations go and make notes.
Get a Mediator
Having a neutral party guide your discussion is a good way to get the partners focused on the issues. While a mediator cannot give legal or business advice, they can help you and your business partner work through your issues. They can help with drafting, executing, and modifying a partnership agreement. They can also facilitate positive discussion and work toward
settling the dispute, especially if litigation is on the table.
Define Things to Make Them Clearer
Your business partnership may lack clarity, which can make matters worse and create a lot of tension. Therefore, it’s a good idea to define how decisions are made. Define who has the authority to make decisions. What happens when you disagree? What areas of responsibility does each partner have control over?
Have Meetings
We need more meetings? Really? Most people dislike meetings because most are not very productive. Learn how to conduct better meetings by setting a firm time limit. If you are dealing with tension, keep the meeting short — no more than 30 minutes.
Contact a Business Lawyer Today
While your business partner may be a best friend or family member, you can still get in a major dispute with them and it can negatively affect business operations.
There are many ways to resolve a business matter. Let a Bradenton business litigation lawyer from Cahall Law Firm assess your case and come up with effective solutions. We can help you avoid a nasty court battle. Schedule a consultation today by calling (941) 281-2019 or filling out the online form.
Source:
teachu.com/how-to-resolve-a-disagreement-with-your-business-partner/