Business partners will get into disputes from time to time. Some of them are minor and can be resolved through a simple conversation. Others are more serious and require negotiation efforts or even litigation. In some cases, a dispute can be so serious that the business partners decide to go their separate ways.
But why do these disputes and disagreements happen? Let’s look at a few potential reasons.
The business itself is struggling
One reason is simply that the business is not doing well. Both partners may feel a lot of stress, knowing they are working hard but not seeing results. They could also get into disputes if they blame each other for these struggles.
There are conflicts over money
Often, partnership disputes revolve around money in one way or another. For instance, maybe one partner believes that the income from the business is not being divided fairly or in accordance with the partnership agreement. Or perhaps one partner is frustrated by the amount they had to invest in the company relative to the smaller amount that the other partner provided.
Roles and boundaries
Finally, it is important for business partners to understand their specific roles in the business and to have appropriate boundaries so that they are not stepping on each other’s toes. Conflict sometimes happens when both people feel they should be in charge of important decisions, for instance, or if one person makes a decision without asking the other.
If you and your partner find yourselves involved in a dispute, be sure you know what legal steps you can take at this time.