A business partnership helps you by creating a broader foundation of support for your company and creating a relationship you can rely on when it comes to managing the business in the future. You and your business partner bring separate skills, experiences and backgrounds to the business you run together.
Perhaps one of you provided funding while the other brought practical experience to the table, or maybe one of you handles technical issues while the other manages human negotiations and interactions. Regardless of how you split your obligations and the nature of your business, the two of you have to be able to work together and agree on certain terms in order for your business to thrive and your partnership to succeed.
Once your business has established a toehold in the market, other companies may become interested in purchasing your business. Whether a competitor wants to buy you out or a conglomerate wants to wade until your niche area of the market with an established or trusted grassroots brand, you both have to agree in order for a sale to take place, which could easily lead to a significant business conflict if you aren’t on the same page.
Mediation or direct negotiation may help resolve partnership issues
Sometimes, just sitting down and talking out your perspectives can help you and your partner get back on the same page. Other times, if one of you really digs your heels in, you may have a harder road ahead. The more contentious things become, the harder joint ownership of the company in the future may become, which is why you should both try to work to resolve your dispute amicably.
Working with your individual attorneys or a mediator to negotiate could be a viable option, especially if you both want to compromise but can’t seem to negotiate the details. Other times, direct negotiations may be a better option if you don’t want to involve a third party in the discussion.
Perhaps one of you can make an arrangement to buy out the other, thereby allowing the person who wants to sell the opportunity to exit the business and the person who doesn’t want to sell to maintain control of the company. Other times, there may be a middle ground available, such as taking on another investor. Exploring all of those options should be part of your dispute resolution process.