People going into business together expect their partnership to last for years. However, most of them, about 70% in total, eventually break up.
Many situations contribute to business partnership failures. Below are five common reasons for this phenomenon.
1. Constant arguing
Some business partners constantly get into quarrels over anything. If they’re not fighting over who’s not pulling their weight, then they’re arguing over the cleanliness of the building or how to attract more customers.
2. Personality clashes
The old saying, “Opposites attract,” can be a hit or miss with business partnerships. While some partners with contrasting personalities can work well together, others tend to be at loggerheads. For example, an introverted individual might want to interact with customers one-on-one, while an extroverted individual might prefer to speak with several customers all at once.
3. Communication issues
Lack of communication can ruin a company because business owners have conflicting schedules and styles. One cannot expect a business partnership to last long if one party frequently has to play phone tag or wait hours for an email from another party.
4. Life changes
Many people go through life-changing events like marriage, having children and moving to another state or country. If one partner leaves their business to pursue a goal or tend to an unexpected family situation, the other partner would either have to run it alone or close it unless they can run it online with their faraway teammate.
5. Lack of trust
Trust is a major building block in business (and anywhere else in life). A partner can cause tension and possible business closure if they steal money or other goods.
Unfortunately, many business partnerships fail. But litigation or arbitration can settle the problems surrounding them. If you and your teammates need help handling business partnership issues, consider seeking experienced legal guidance.