Establishing a business partnership is an exciting time - full of shared vision, challenges, and celebrations, not unlike getting married. Each partner has shared obligations and responsibilities, and both partners need to work together to make the business operate like a well-oiled machine.
Similar to a marriage, discontent and disputes are bound to arise between business partners. So, what should you do to resolve the differences? What are the steps that can help end disputes between the partners?
Whether the dispute is regarding lack of transparency, embezzlement, or discontent with the level of one partner, here are five tips that can help you come to an amicable resolution - which is far less expensive than a dissolution or lawsuit.
During partnership disputes, it's easy to point fingers and make judgments. But this only result in an escalation of the problem. It's important that both the parties think and act rationally without making any judgments.
Consider reframing your mind to understand the position of your partner. Thinking over the matter by getting in the shoes of your partner will help make matters clear. Consider the real reason why you had entered into a partnership. Even if you don't agree with it, you should make efforts to understand your partner's position. This will increase the likelihood of coming to an amicable resolution regarding a dispute.
Most disputes arise due to miscommunication between one or both partners. Being upfront with the partner and communicating concerns can help in resolving issues. The resolution can be either in the form of a fair distribution of profits, equal redistribution of tasks, or establishment of future business direction. Without open communication, a resolution regarding a dispute can be next to impossible.
Both partners should focus on finding solutions, instead of emphasizing the issues. Getting problems solved is in the best interest of both partners. When it comes to a resolution, make sure to focus on win-win situations. A dispute cannot end amicably if one party feels wronged. Only by working together and looking at alternative solutions can partners come to a mutually agreeable solution.
One effective strategy to resolve disputes is by organizing an active listening session. Consider organizing short 10 to 20 minute sessions in which both parties agree to just sit and listen to the other’s grievances. This is a remarkably effective method for resolving all types of disputes including business partnership disputes.
Hiring an experienced business attorney is important when it comes to handling partnership disputes. SRG Law Group are comprised of expert business lawyers in the Inland Empire who can offer advice that ensure that your best interests are protected.
Our experienced business attorneys can help you prepare a partnership agreement, assist in resolving disputes and fully protect your rights and interests in accordance with the California business law. We can help you find a mutually beneficial resolution in case of a dispute that’s dragging and destroying your partnership and your business.
SRG Law Group is a business lawyer serving the Inland Empire, Los Angeles and San Diego. We've handled complex business matters for small, medium and large businesses. Whether you are a small business seeking legal advice to help you grow, or an established business concerned with maintaining growth and protecting the business from liability, SRG Law Group can walk you through the maze and red tape of the law so you can focus on what matters most – the business.SRG Law Group’s practice in this area involves the assistance and counseling of clients in areas such as choosing a form of business, formation of corporations and other entities, evaluation of the suitability of... View full business profile here: SRG Law Group
