When you choose a business partner, the goal is to have someone who is going to make your company stronger. The two of you are going to work together to create a business that neither one of you could’ve created on your own. You hope this goes smoothly and that there aren’t any disputes that can hold the company back.
Unfortunately though, disputes do happen, so it’s important to know what steps you can take to try to avoid them. This is good for the health of your company and can make you more productive. Here are a few things to keep in mind.
Make sure you have a partnership agreement
First and foremost, you do want to draft a partnership agreement when you start the company. This can lay out your various roles within the company, how you’ll be paid, what percentage you own, what duties are expected of you and things of this nature. A lot of disputes start because people just make assumptions and they don’t have anything in writing, so addressing this in advance can help avoid them.
Set up different roles
Speaking of the roles that you have within the company, one thing that helps is simply when you make them as different as you can. A lot of disputes happen because two people want to make the same decisions or there is a lot of overlap in their duties and obligations. If these things are separated, then you’re less likely to have friction as you both just do what you need to do for the business.
Address dispute resolution tactics
When you do make your partnership agreement, one thing that you want to do is to set up a plan for how you will resolve a dispute if one comes up in the future. What steps should you take? What happens if there is no resolution? Asking these types of questions before the dispute even starts can be very helpful.
If you do find yourself involved in one, make sure you know what legal options you have.