Many California business owners spend sleepless nights littering potential litigation from clients, vendors, subcontractors and the general public. However, when problems arise from business partnerships it can feel like a personal betrayal.
According to CNN Money, California had the worst failure rate among all states, with a 69 percent higher incidence of small company failures than the national average.
Signs of potential trouble in your partnership
The Young Entrepreneur Council (YEC) published a list of warning signs that every business owner that has a business partner should be aware of. Let’s take a brief look:
- Communication is key: When communication breaks down in a business partnership it if not impossible, but it is difficult to repair. Businesses rely on clear and trustworthy communication by all partners involved.
- Mission and values: Having a strong mission statement is more than words on paper. A mission statement should be the driving force in implementing values, ethics and best practices into any business.
- Responsibility: When a business partner is irresponsible with company time, resources and finances it could be a sign of continued and escalating difficulties.
- Enthusiasm: A lack of enthusiasm or a general attitude of mediocracy can be a sign that a business partner has lost interest in the joint venture.
- Detail-oriented: Not paying attention to details of the companies’ responsibilities, risks and opportunities can indicate that the business partners’ interests lay elsewhere.
- Conflict: When the smallest of issues deteriorates into conflict and disagreement, it can be a sign that the future of the partnership is doubtful.
Recognizing the signs of trouble before it turns into litigation can serve as a proactive approach that saves time, money and energy.
Is my partnership doomed?
Like marriages, business partnerships that are in trouble do not mean that they are doomed to failure. With guidance, tools and patience a partnership may be turned around. However, if things get worse instead of better, it may be time to explore all your options to make sure that you and your business are protected.