Some business partners get into disputes frequently, while others enjoy relatively smooth sailing and only have disputes occasionally. Some of these are minor, but many of them can be very serious. In some cases, a dispute could spell the end of the business entirely.
As such, it’s important for business partners to understand why and how these disputes take place. Below are just a few examples, although every case is unique.
They have different priorities or goals
In some cases, people just don’t have the same priorities regarding the company. For instance, one business partner could be focused on the customer experience while the other is only focused on the bottom line. If they have a different vision for what they think the company should be, they may find themselves working against each other.
There are financial issues
Finances often cause disputes, perhaps revolving around how much money each person needs to invest in the business or how salaries or paychecks should be drawn. It’s good for partners to have an official partnership agreement so that they can iron out some of these details in advance.
Conflicts over roles
Finally, business partners often get into conflicts over their roles or duties within the business. Say that both people want to make creative decisions or decide what direction the company is going to go. Disputes may occur if one business partner makes a crucial decision without consulting the other.
When these disputes happen, it’s quite important for business partners to understand what steps they can take to protect themselves and the business. The legal tools they use will be unique to their case, but there are always options available.
