Common reasons for partnership disputes
If you are a co-owner of your business, with one or more business partners, there is the chance that a dispute will arise. This can be highly detrimental to your company and your future, especially if you cannot resolve the dispute. Many of the most difficult cases involve just two owners, as there is no way for them to break a tie by putting the disputed topic to a vote.
It may help you to consider some of the reasons for disputes in advance. This way, you can consider what action you want to take and what to expect. Preparation may help you find a solution more quickly and get things back on track.
3 main issues partners face
With this in mind, consider these three main causes of disputes:
- Authority: If you do not have a partnership agreement that clearly lays out what authority you have, the two of you could certainly believe that the other is out of line. It’s common for one person to overstep a bit and offend the other.
- Decisions: Making key decisions for the business is critical, but what if you disagree on how the company should be run, what direction it should be moving in, whom you should hire or a host of other issues? You can’t always find a compromise if you both strongly believe you are correct.
- Finances: Money causes a lot of problems, especially when things don’t seem fair. Maybe your business partner spent funds on something you didn’t approve of. Maybe they believe they should have a higher salary than you.
No matter why you find yourself in a dispute, you must know what steps to take to settle it.