When you decide to enter into a business partnership with another person, you do so with the hope the partnership will benefit both parties and that your business’s bottom line will grow at the end of the day. And most often, this is what happens when partnerships start.
However, it is not uncommon for differences to arise during a partnership period. And when these differences damage the partnership beyond repair, it is only appropriate that you sever ties. How can you know whether your partnership is headed for stormy waters? The following are two questions that can help you determine if your business partnership is potentially headed for trouble.
Is your partner putting personal interests above business interests?
Each partner has a duty to put the interests of the business above self-interest. This is known as fiduciary duty. If your business partner is making decisions that are inclined towards personal interests rather than the common good, then you need to reconsider the partnership. For instance, if your partner is engaging in potentially risky behaviors like inappropriate relationships with employees, alcohol and substance addiction and fraud, you can’t be sure they won’t cross the line and expose the business to the risk of financial losses or even costly lawsuits.
Is your partner downright dishonest?
Every successful relationship is founded on honesty and accountability. Even simple misrepresentations of the truth can make or break a partnership. If your partner is routinely dishonest, especially on money matters, then you need to be wary of the relationship. The last thing you want is dealing with a dishonest partner.
Protecting your interests
Partnering with the right individual can be beneficial in multiple ways. However, you have to get every aspect of it right, and one of them is your choice of a partner. Once you’ve chosen a partner, it’s important to safeguard your interests by crafting a thoughtful partnership agreement, just in case things go south. In the event that they do, seeking legal guidance is going to be a wise move.