A business partnership is no different than any other type of relationship. There are going to be good days and bad days, and it will take effort to make it all work. Most of the time — as with any other friendship or relationship — the effort is worthwhile.
Conflicts and arguments are to be expected, but you can take a proactive approach to managing your business partnership. According to OnDeck, these are the best ways to prevent disagreements with your small business partner:
Work with a third party to create your initial business agreement
The best way to minimize conflicts and disagreements throughout the course of your business partnership is to begin the partnership on the right foot. You should work with an objective third party, such as a business attorney, in order to draft an initial business agreement. This agreement should be legally binding and should indicate the parameters for the partnership. It is important that you and your business partner work together to select an attorney and that you create the business agreement as a team. When everyone understands the business agreement, there is less room for frustration and disagreement in the future.
Outline the division of responsibilities in advance
It is not uncommon for business partners to disagree about responsibilities. All too often, one partner may feel like they are bearing the burden of the grunt work, while another may feel like they do not have an opportunity to get as involved as they would like. This can be easily prevented by working with your partner to outline the division of responsibilities in advance. Your lawyer can help you draft an agreement that identifies who will be responsible for which actions in the business.
Listen and keep an open mind about compromising
In a business partnership, you have to remember that there will always be multiple viewpoints and various solutions for any given problem that arises. The most successful partnerships are formed by parties who are willing to actively listen to one another, keep an open mind as ideas are shared and compromise to come up with the best possible solution for the business.
Focus on the big picture
In a business partnership, it’s easy to take things personally. However, to avoid getting caught up in the minutiae of the day-to-day decisions, you and your partner should always keep your eye on the larger picture. This allows you to maintain the course and avoid causing unnecessary drama over smaller decisions that have less of an impact on the overall business.
When you are entering into a business partnership, you will want to utilize all of the resources you have available in order to make sure that your partnership is a success. This requires you to include a qualified attorney in your partnership. An experienced lawyer who specializes in business law will be able to help both you and your partner draft business agreements and expansion plans that ensure equal distribution of responsibilities as well as assets. Ultimately, the legal documents that you draft in advance will help quell future disagreements.
For more information on creating a business partnership and launching a small business, contact our law firm today.