Business partnerships are a lot like marriages. When they work well, they benefit the people involved and everyone who interacts with them. When they start to fall apart, they can be a nightmare that causes financial loss and emotional strain.
No matter how much respect you have for your business partner, sometimes partnerships need to end. If you notice any of the three issues below affecting your company or partnership, it may be time to discuss dissolving the partnership.
Your partner has checked out of their work
Taking on a partner means having someone else to handle financial and practical responsibilities. You need to be able to rely on that other person to do their job. Unfortunately, some people do get burned out, even if they own their business.
If your partner doesn’t pull their weight anymore or has become unreliable, it may be time to explore whether they would be happier in another position with a different company.
You no longer agree about your long-term plans
If your partner wants to sell the company to the highest bidder and retire but you want to keep working for another decade, that could be a sign that it may be time to offer to buy out their rights to the business or to allow them to do the same with your ownership stake.
The same is true of scenarios where one partner wants to change the focus or scope of the company, but the other does not. When your goals for the business no longer align, you may need to go your separate ways.
Your personal relationship has fallen apart
You can both do your jobs well and remain committed to the company but fail to work well together as partners. If you have come to resent or dislike each other and you can’t see that changing, then one of you may want to consider leaving the business. You may also consider splitting into two different companies or dissolving the operation altogether.
Ending a business partnership is never easy. You may both derive benefits from going your separate ways in the long run, though.