It is not uncommon for business partners to engage in conflicts during the course of their relationships. However, it’s important to have protocols in place so that you can resolve disputes with your partners in a timely and professional manner. Doing so allows you to resolve conflicts without having to go to court, although sometimes litigation is unavoidable.
Identify the root cause of the issue
The first step to ending a dispute in an amicable manner is to figure out what the cause is. For example, let’s say that you thought you were entitled to 50% of the company’s gross revenue while your partner believes that you’re only entitled to 50% of net profits. Reviewing the terms of the partnership agreement may make it possible to determine who has the stronger position. If necessary, the agreement can be revised to clarify what the document says to each party’s satisfaction.
What happens if informal talks aren’t enough?
Ideally, a private conversation will be enough to solve whatever problem that you’re having with a business partner. However, if this doesn’t work, it may be necessary to take the matter to court. If your case does go to trial, a judge may eventually order you to pay damages to your partner. It’s also possible that a judge doesn’t rule in a business litigation proceeding because a settlement is reached before the end of a trial.
If left unresolved, even minor disputes between business partners could eventually result in a business closing its doors. Therefore, it’s important that you have a plan in place to minimize the risk that a serious conflict may occur. It’s also important to have a plan in place to ensure that any problems that do arise can be resolved with as little drama as possible.