Most people enter business partnerships with high hopes and ambitions. Unfortunately, collaborating with another person does not always go according to plan. Maintaining a healthy relationship with your business partner requires you to utilize various strategies to prevent disputes.
Being proactive can help business partnerships succeed.
Be open and honest with your business partner
Statistics show that up to 70% of business partnerships fail over time. Discuss the statistics with your partner to ensure that both of you are on the same page and understand the stakes in front of you. Honest communication should include discussions of your goals, challenges and concerns. When you remain transparent, you create a relationship founded on trust.
Have a comprehensive agreement
Establish a clear and comprehensive agreement that outlines both partners’ roles, expectations and responsibilities. You should have protocols to handle decision-making, dispute resolution and profit-sharing. Your agreement can serve as a blueprint for finding a resolution when disagreements arise.
You and your partner should have a schedule to check in with one another to discuss your business’s progress. The check-ins allow you to review your finances, discuss your company’s future and evaluate performance. If you discover that you are not on the same page as your partner, you may want to consider mediation or dispute resolution. Mediation can help you find solutions without a lengthy court battle.
While no one wants to imagine their partnership devolving, you should always have an exit strategy or plan on how to handle splitting the partnership if the time comes.