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Can you prevent partnership disputes?

On Behalf of | Jan 6, 2021 | Business & Commercial Law

The sustainability of your business partnership can heavily impact your company’s success. Getting the relationship off on the right foot requires planning, teamwork and communication. 

Even though you and your partner may not always see eye to eye, developing trust and respect for each other from the onset of your relationship can make a considerable difference in preventing a dispute. 

Welcome and enforce transparency

A common reason for partnership disputes is distrust in the relationship. If you suspect that your partner is hiding business assets or participating in unethical practices, the partnership could crumble. Sometimes this collapse could take your company down with it. According to Inc., you can combat this problem with a commitment to transparency. 

Develop trustworthy practices for managing and handling sensitive components of your company such as financial transactions. Encourage each other to practice transparency in reporting. Welcome the opportunity for a third-party to audit aspects of your company to elevate everyone’s desire to maintain professionalism and integrity. 

Communicate about everything

It is surprising how avoidable many business disputes are if participants had only communicated a bit better. Set clear expectations for each other and consistently communicate about everything. 

If you feel like an aspect of the relationship is not working effectively, address your concerns immediately. Timely communication about uncomfortable issues can help you determine a solution before the problem worsens. This approach to consulting with your partner rather than ignoring issues or gossiping about your concerns to another person can strengthen trust and respect. Built on a strong foundation of trust and respect, your partnership can thrive and provide invaluable support for your business.