A business partnership can open the door for amazing opportunities. However, as with any other relationship, it is not uncommon for business partners to get into a dispute from time to time. Usually, most disputes can be resolved and the partnership continues.
However, there are times when a partner may want out of the business relationship. Of course, leaving a business partnership can greatly impact all the parties involved. As such, it is important that you figure out how to make this breakup as painless as possible.
Here are three tips that can help you end a business partnership amicably.
Look out for the warnings
Sometimes, the warning signs of a troubled partnership can be quite subtle. If you notice signs such as inconsistencies, a breakdown in communication or a sudden lack of focus on the business’ goals, do not look the other way. Taking note of the signs of a potential breakup allows you to prepare for the exit before things become messy.
Avoid a hardline position
It is okay to come up with a list of issues you want to be addressed before the partnership can be dissolved. While at it, ensure that you prioritize these issues from the most critical to the least important. This will help you negotiate a better settlement when dissolving the partnership. Additionally, this also helps you reach a compromise on issues that are less important, thus building the goodwill to resolve critical issues like disposing of business assets.
Review the partnership agreement
Every partnership agreement comes with an exit and dissolution clause. Knowing the rights and obligations of each partner during the dissolution will help you craft an exit strategy without causing much drama or suffering the negative financial implications of the exit.
A breakup is never easy – even in business partnerships. Knowing your rights and obligations to the partnership can help you keep emotions out of the way while ending a business partnership.
