Partnership disputes can be highly detrimental to the future of a new business. Partners may initially start working together when they get along and things go smoothly, but these disputes can derail their progress. In some cases, partnership disputes are so significant that the partnership has to be dissolved.
But why do these disputes happen? Below are a few potential reasons to keep in mind.
1. Disagreement about values
First and foremost, two partners are both going to have different values and different philosophies in life. They may have different ideas for what the business is supposed to be. This can lead to business partners working toward very different goals, which may cause disputes. It’s wise for partners to talk about their vision for the company and the goals they want to accomplish so that they’re on the same page.
2. Financial disagreements
Disputes also often happen for financial reasons. Maybe one person is investing more money than the other. Maybe one business partner is taking a larger salary than the other. Maybe one person thinks that the business is wasting money and could cut costs, while the other person believes that those costs are necessary to provide the product their customers deserve.
3. Disagreements about roles
Finally, some partnership disputes just revolve around the roles each person has within the business. This is why it’s good to find someone with complementary skills. In a perfect world, two business partners will have clearly defined and very different roles so that there is no overlap or conflict.
Unfortunately, business disputes are going to happen from time to time. Partners and business owners need to know what legal steps to take.