Business partnerships and romantic relationships have something in common – they both generally run smoothly in the beginning. Partners are excited and optimistic about the future of the partnership and the prospects that comes with it. And just like romantic relationships, the honeymoon phase eventually runs out leaving partners to contend with the reality of diversity: conflicts and disagreements.
Not all partnerships can endure the heat of disagreements in the long-tun. When disagreements strain the partnership beyond repair, you may have no option but to dissolve the partnership. How can you know it’s time to end your business partnership based on conflict-related reasons? Answering these two questions can help you determine whether the time is up for your partnership.
Is your partner acting irresponsibly?
If your once-upon-a-time diligent partner has resorted to making risky and, perhaps, illegal decisions that are likely to hurt the business, then you need to reconsider your association with them. For instance, a partner who has taken to improper sexual conduct with employees or gambling will almost certainly, in a matter of time, expose the business to costly litigation and reputational damage.
Is your partner dishonest?
This is an important warning sign. Just like a romantic relationship, honesty is the glue that holds a business partnership together. Whether your partner is simply being economical with the truth or committing fraud, you need to act. If you do not, what may start out as a simple lie could escalate into something most detrimental to the partnership and the business.
Protecting your interests
Differences are bound to happen during the course of the partnership. If these differences become irreconcilable, however, you need to figure out how to protect your interests, especially if you have resolved to go your separate ways. Seeking legal guidance can provide you with clarity about your rights and your options.