Many entrepreneurs realize the advantages of establishing a partnership for a business. Before pursuing anything else, partners need to come up with a resolution to determine who is responsible for which duties and how to divide shares in the event of one partner’s death.
However, over the course of business operations, disputes will inevitably arise. While legal assistance can help, it will work in everyone’s best interest to try to avoid such disputes entirely in the first place.
Every aspect of the business requires a chain of command. Ideally, both partners bring certain strengths to the table, so one partner may be in charge of one area and the other partner is in charge of everything else. Disputes arise when one partner oversteps his or her boundaries and starts providing recommendations to the other on how to operate even though that partner has more knowledge in that particular field. A clear chain of command needs to be present so no one steps on someone else’s ideas.
Money is definitely the biggest factor when it comes to arguments between business partners. All partners need to know about their financial obligations and rights. Again, creating a clear plan on how everyone needs to behave helps avoid a lot of confusion. Otherwise, one partner may not see the harm in using the company car for personal errands while the other remains concerned about properly using company property.
Company objective disputes
One partner may have big plans for the future while the other wants to take things slow. Bringing on a third-party mediator who remains objective can allow both sides to share their feelings so they can reach a conclusion everyone is happy with. In the event a mediator does not aid in this endeavor, then it is time for both sides to consult with attorneys.