How to break up with your business partner
Just like all other interpersonal relationships, business relationships may come to a natural end. This does not have to be a difficult process, although it may seem overwhelming at times– especially if only one party is seeking independence. Dependant on your situation, dissolving a partnership may even help your company grow financially. Has your business arrived at this turning point? Read Heritage Law’s “break up” tips below and be sure to contact us today with any of your concerns.
SPOT THE WARNING SIGNS
Business partnerships can endure many things and some even outlive their original founders, tying families together in business for generations. You cannot always predict whether your partnership will live up to that, but you can hope for it and prepare for the worst simultaneously. Whether your partner has a disruptive workflow, a different view on fundamentals or an incomplete sense of relationship balance– it might be time to lay the groundwork for a split.
HIRE A LAWYER
During a dissolution of a business partnership, you should always protect your own interests with your own legal representation. Some may see this as adversarial, but it is more common that the end of a business partnership is amicable when individual lawyers are involved. If the “break up” is on a very solid foundation, you may find success by sharing the cost and services of a third-party mediator.
PUT IT IN WRITING
If you are planning to start a partnership, always begin with a signed document that not only outlines the rules of the relationship– but also how, when and why the partnership should be ended. Not unlike a “prenuptial agreement,” this process may seem counterintuitive but the results are almost always positive. It saves money, time and emotional stress should the agreed upon consequences arrive.
The above tips are only a short introduction to the complexities of running a successful business partnership. For these and any other legal concerns, contact or visit the pros here at Heritage Law!