Disputes between business partners are common so you should have conflict resolution strategies in place in case you need them. You can, however, do things to reduce the chance of conflict.
Here is how you can do this:
Distribute duties fairly
One common reason business partners fall out is that one believes they are doing more work than the other. Before signing the partnership agreement, you should discuss how to distribute roles. It can be wise to do this based on each party’s strengths. Then, clearly define each party’s role in the agreement.
You should also discuss current tasks and make adjustments when necessary. Further, respect each other’s responsibilities – avoid micromanaging or one party interfering with another’s duties.
Have a decision-making process
A business partnership with a clear and fair decision-making process is less likely to experience disputes. How you and your business partner make decisions is integral to the success of the partnership.
Agree on how you will make decisions and include the process in your agreement. Examples of processes to consider are the consensus model, the democratic process and delegation.
Manage your emotions
You may experience sadness or other emotions when you realize your business partner has a different vision for the business, lacks qualities you thought they possessed and so on. In such instances, it’s vital to know how to manage your emotions to make informed decisions.
Being open-minded and communicating your concerns can help you keep your emotions under control when in a business partnership.
If you and your business partner are in a dispute, legal guidance can help you determine how to approach the matter peacefully.
