Most business partnerships run smoothly in the beginning. Partners are excited and enthusiastic about growing the company together. However, like any other relationship, the honeymoon phase eventually passes out, potentially leaving you to contend with the reality of having a business partnership: conflicts and disagreements.
Unfortunately, not all partnerships can withstand conflicts. A time comes when partners have to go their separate ways courtesy of irredeemable differences. So how do you know it is time to call it quits on your partnership?
Here are two signs that can help you make the decision to dissolve the business partnership.
Your partner is acting irresponsibly
This is a big red light. If your partner is making risky and, at times, reckless life and business decisions, their actions can greatly hurt your business and reputation. A partner who has taken to gambling or improper conduct with employees and clients can expose you and the business you have worked hard to build to costly lawsuits. This is especially true if they are not willing to acknowledge what is at stake and change their ways.
Your partner is dishonest
Honesty is the glue that holds any relationship together. Whether your partner is simply stretching the truth or is blatantly dishonest, you need to take action. For your partnership to thrive, each party needs to be as forthright as possible when it comes to business operations to avoid legal and ethical conflicts down the road. Overlooking untruthfulness in a business partner can lead to damaging repercussions like insider trading, IP fraud and embezzlement.
Partnership disputes can come in a myriad of ways. Knowing your legal options can help you safeguard your rights and interests while dissolving a partnership agreement.