Starting your company and watching it take off was probably one of the most exciting times of your life. As your company grows, so too do the responsibilities. You may have more staff to look after, more clients to cater for and more legal agreements to adhere to. You might have taken on a business partner to share some of these burdens.
Often, business partnerships work out and disputes can be overcome with effective communication. However, in some cases, things are not that easy and a partnership can result in lengthy litigation and lasting damage. Recognizing some of the more common causes of disagreements could help you to prevent them. So, why do partnership disputes happen?
Who’s the boss?
Both you and your business partner are most likely set on taking the company to the next level. The problem is that your methods may not be exactly the same. In all likelihood, you both have different strengths and weaknesses and divide work accordingly. If one of you oversteps the mark and attempts to assert authority, this can create tension. For your business to function optimally, you need to define clearly each other’s roles as well as the company hierarchy.
How is money being spent?
It is not surprising that finances are one of the leading causes of conflict between business partners. After all, making money is what you have all signed up for. Your business partner may feel entitled to dip into company profits now and again to cover personal expenses. They might be spending a fortune on renovations or new technology. The problem is, they don’t have as accurate a picture of the financial circumstances as you do. From the very beginning, it is vital that you clearly set out who is to oversee the financial aspects of your business.
A successful business partnership can see your company grow from strength to strength. Unfortunately, things do go wrong sometimes. If you find yourself tangled up in a dispute you cannot resolve, take a look at your legal options in Florida.