When you run a business, you face a multitude of challenges while building your business to succeed. If you have a business partner, they may help you overcome those challenges. Yet, at some point, your relationship with your business partner may become a challenge in itself. You may face a dispute you have a difficult time resolving.
So, what should you do when you face a dispute with your business partner? Here are four steps to take to handle a business partnership dispute:
- Consult your partnership agreement. Hopefully, you and your business partner created a partnership agreement before you launched your business together. When you face a partnership dispute, you need to check the partnership agreement. It should include information on how you’ve decided to handle future disputes. Have you agreed to seek mediation or arbitration?
- Plan a time to try to talk things out. Give each other a chance to write out the issues that are causing the dispute and then talk about them. Does one of you feel the other isn’t handling the responsibilities they previously agreed to take on? Are you having problems working together to solve your business challenges? You need to take time to express the issues behind your dispute, minimizing the emotion involved.
- Enter mediation or arbitration as your partnership agreement stipulates.
- Consult with an attorney who has experience handling business partnership disputes if you can’t agree on mediation or arbitration. An attorney can help guide you as you work through your dispute, decide to pursue litigation or end your partnership if needed.
For the health of your business, you can’t let a dispute with a business partner linger on. You need to take steps to move forward and resolve your issues, so you can get back to focusing on your business’ operations and growth. With help, you can work to resolve your partnership agreement or end your partnership agreement if that’s the best choice for you and your company.