How to Spot a Budding Partnership Dispute
In Atlanta and elsewhere, the lingering effects of the covid-19 pandemic are affecting more than just our physical health. The stress and strain have made tempers flare and key communication fizzle. At home it’s easy to spot -- a little extra grumbling at the dinner table, kids on new devices you don’t remember buying. But at work, and in a business partnership, the signs could be a little more subtle and potentially a lot more damaging.
How do you know, then, if you and your business partner are heading towards a major dispute?
More importantly, how can you head it off at the pass?
At the heart of every dispute is a lack of communication on key issues -- with differences of opinion about growth or investments being the most common. Did the pandemic take your business in a different direction? Was it a time of growth or retraction?
Perhaps you’ve been surprised to learn that a partner is using business accounts for personal spending, or disagree over personnel issues like hiring or firing. You might be struggling to find consensus over business expansion or contraction -- and whether it’s the right time to pursue new markets or expenditures. It might be time for someone to leave the partnership, but do you have a plan for that?
Whatever the case may be, if you sense a shift in priorities or see big changes in your business partner’s behavior, it’s time to revisit your partnership agreement. With the entire world in the grips of a seismic shift, as we deal with the long-term effects of the pandemic, chances are your business philosophy or operations are changing, too. The important question is, how does your operating agreement direct you to manage these changes? What does your contract say, and when was the last time it was updated?
Business partnerships are founded on mutual agreement over major decisions and a clear delineation of responsibility and authority. When you went into business together you had a contract -- and your priorities and values were likely quite clear. But if the pandemic has thrown a match on a long-simmering tension, or even struck a new pain point entirely, it’s time to take the temperature of your partnership, and revisit your operating agreement -- before your business catches fire.
The good news is that with clear language, strong bylaws, and a solid operating agreement, your business contract can keep you from having a big explosion -- and put out the fire before it starts.
As the saying goes: If you see something, say something.
Talk to a Partnership Attorney Today
The experienced attorneys at Blue Sky Law have been helping businesses in Atlanta and around the country for nearly XX years. We’ve managed businesses ourselves, and we value the work that goes into building a successful enterprise. We know how much you care about your business, and we want to help you protect it. Give us a call or contact us online to learn what we can do for you.
