When starting a business partnership, you certainly hope that you don’t end up in a dispute with that partner. It is best for the business if the two of you are on the same page and working together, rather than finding ourselves in conflict.
But how likely is it that this type of dispute will arise? Most partners are eventually going to be involved in at least a minor dispute. Every case is unique, but it’s worth considering why these disputes happen. If you see specific red flags in your own business partnership, that may indicate that it is more likely than not that the two of you will find yourselves in a dispute in the future.
Potential red flags
To help you know what to look for, here are some red flags you may spot before that dispute occurs:
- There is a lack of communication or just generally poor communication between the two of you.
- You both have a vision for the company that is significantly different, and the two versions just do not align.
- There is a breakdown in trust.
- There is a lack of respect for the other person’s time and the effort that they’re putting in.
- Your business partner refuses to take responsibility for mistakes.
- The two of you disagree on how money should be divided or used by the company.
- Your business partner simply isn’t as dedicated or enthused with the project as you are.
Serious business disputes in one of these areas can be highly detrimental to the company, and may even cause the partnership to break down. That’s why it is so important for you to understand exactly what legal steps you can take if you find yourself in this situation.