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Common partnership issues

On Behalf of | Mar 9, 2023 | Business & Commercial Law

When you have a partner, you should expect disagreements. In fact, partners will rarely agree on everything all the time.

However, when you start a business, you should have made major decisions about your company. These are a few issues you understand before signing your partnership agreement.

Unfair treatment

At some point, you or your partner may feel that you are not receiving fair treatment. You may feel that you do more or should receive greater financial benefits, whether this increase is due to your initial investment or the amount of work you do. Discuss everyone’s financial and management responsibilities and financial distributions.

Lack of trust

If all the partners in your business are not informed about every decision, this can breed a lack of trust. Therefore, each partner should share every major decision, all financial information and any other business-related news. The partners should also complete the tasks they agree to. Try to restore broken trust immediately.

Imbalance of Power

As partners, you should work together to make all major business decisions. However, your employees, vendors or creditors may treat you differently, making one or more of you think that you do not have equal power over the company. This imbalance can cause major disagreements. Reestablish that your company is a partnership and that all the active members have equal power.

Different management styles

Employee and financial management are vital to your business success, but if you and your partners have different styles, you may experience disagreements. Recognize that employees may respond better to different management styles, and work together to create processes and procedures.

Always act with respect toward your partners and avoid letting personal and professional disagreements impact your partnership and business.