There are numerous advantages to forming a partnership. However, as with any relationship, there are times when business partners do not see eye to eye. There are certain disputes that are common among partnerships. While the resolution to these may be possible, not all partners are able to work things out.
According to Business News Daily, money is a common reason partners disagree. Partners may not agree about how to spend money, or there may be an issue related to salaries or profit disbursements. One issue that is not easily worked out is if one partner is embezzling funds.
If intellectual property is at stake, this can become an issue. Before the partnership begins, the partner who has the intellectual property should take steps to ensure it does not become company property. If this does not occur, there may be a bigger legal battle at hand.
Another common dispute is over operations. Disagreements often occur when one partner feels the other one is not working hard enough. This sometimes leads to a dissolution of the partnership.
Entrepreneur discusses other challenges some partnerships may face along the way. The initial excitement for starting a business together often wains over time. This may lead to one partner not having the same commitment level as the other or a partner dealing with stress in unhealthy ways such as with drugs or alcohol. Partners with different personalities may also find it harder to work together.
Experts recommend writing a partnership agreement that outlines all potential issues. Without it, some disputes may lead to a battle in court.
