In some cases, business partners who get into a dispute can resolve it on their own. In other cases, certain dispute resolution tactics are going to be necessary. The two may even end up having to dissolve their partnership and go their separate ways.
This can be a complex legal situation, and it can have a major impact on the success of the company. So what are some of the reasons that this may happen?
You have different priorities
First of all, disputes may happen if you and your business partner have very different priorities, goals or visions for what you think the company can be. You will eventually feel that you are working against one another and that your partner is holding you back, rather than helping you. You may feel that they are trying to take the business in a direction you’re not comfortable with.
There are financial conflicts
Financial conflicts are also common, especially when looking at earnings or how to use the business’s revenue. Partners may disagree on how to split up these earnings, if they should take a salary, how much money they need to invest in the business, when payments should be made and many other details.
There’s a power struggle
Finally, there could just be a power struggle within the business. Maybe both people want to make creative decisions or decide what direction the business takes. Maybe both of you disagree about who gets to make major decisions for the business, like whether or not to go public.
When these types of disputes and disagreements arise, business partners need to know exactly what legal steps they can take.