You may have heard business experts comparing partnerships to marriages. It is not difficult to see where the comparison comes from. Both relationships require compromise, communication and trust. When any of those elements are lacking, it usually indicates trouble ahead.
In a marriage, you often learn about each other as you go along. When it comes to your business partner, however, it can only be prudent to learn as much as possible about him or her before beginning your venture. More importantly, having a solid contract that addresses common partnership issues may prevent many disputes.
Is your partnership on the brink of failure?
For many ill-fated partnerships, the rift built up as a series of small disagreements. For others, one massive betrayal ended the relationship and often the business itself. Careful vetting of a partner may reveal if he or she has a history of creative bookkeeping or is experiencing personal financial problems that may place your profits at risk.
However, if your partner fails to live up to the conditions and terms you agreed upon in your partnership contract, you may find your business in danger of collapse. Some of the common disputes that can jeopardize a partnership include the following:
- Your partner does not abide by the agreed upon division of duties and labor.
- You or your partner feel your salary does not fairly compensate you for your contributions and efforts.
- Your partner authorizes expenses without your approval or refuses to allow you access to the business's financial information.
- You and your partner cannot agree on how to equitably distribute profits.
- You and your partner cannot agree on who owns the intellectual property you use in the business.
- One of you wants to dissolve the partnership.
Even with a partnership agreement, conflicts may arise between partners just as they do between spouses. If it is clear that you and your partner will not be able to resolve your dispute together, the assistance of a North Carolina attorney may provide the counsel you need to rescue your business from the demise a partnership dispute may bring. An attorney experienced in business law understands the importance of a swift resolution and will work to reach that goal with the interests of your business in mind.