How to Handle Partnership Dispute Resolution

Starting a business can be described as anything, but easy. Diving into the unknown challenges and hidden obstacles during each phase of the process is not a one-man job. It's a necessity for a successful company to have well-established policies and a team that cooperates in accordance. Being surrounded by people whom you can trust means you are able to focus on the big picture, instead of micromanaging them. And in terms of being a leader, greater the power, greater the responsibility. Sharing important tasks and making tough decisions is certainly easier if you're not alone in it. Due to this, besides the obvious financial benefits, which present one of the crucial aspects for start-ups, many young entrepreneurs are opting for a business partner.

Step Into My Shoes!

Finding someone who shares your vision and interests will certainly help you in both creative and management issues. Simply being aware you have a trustworthy partner means you don’t have to double-check every single detail or form. This will significantly reduce stress levels in the work environment. Furthermore, you can build on one another’s ideas, share knowledge and, most importantly, have honest feedback at all times.

However, people and their interests can change, and for personal matters, it's good we can always agree to disagree. But when it comes to business, the more can be just the opposite of merrier. Luckily, there is a law structure that regulates all disagreements regarding legal matters in the corporate world. It goes without saying that both the duration and the complexity of the process will depend on several factors and include many variables. Personal attitudes and relationships can be severely damaged if there are emotions in the equation. This is why the role of a mediator is crucial in the dispute resolution process.

The biggest problem in such disputes comes as a result of different approaches and business philosophies. It can be really hard being objective when you believe in something, and most people do not presume, at the beginning, that the same idea can develop in various ways. That is the main reason why all parties included in a partnership resolution ought to have a legal representative. Understanding the need of a third party is essential and will reduce the costs of both time and money, as well as enable your company to operate during the unfortunate events. First of all, address the partnership agreement which will help you initiate the procedure in legal terms. Also, it will help you build a foundation of your case and provide more clarity in the discussion agenda.

Pick Your Battles!

All that being said, the agreement might not have a solution for your problem. You should simply use it as a guideline and bear in mind, those agreements were formed while the partners were still in the “honeymoon stage” of operating. During that period addressing numerous possible issues and problems may seem excessive. Hopefully, everyone’s goal is to resolve the problem and, even in the worst-case scenario, not create a more complex one. There are many alternatives to going to court that will be equally effective! Communication is the key in fostering a constructive atmosphere while solving the problem. A lawyer can also help you remove the personal factor, face you with previously agreed obligations and duties and present all the possible solutions.

Specify the main problem and list the items that you believe are causing a dispute. One action of your partner can be just a straw that broke the camel’s back, without you even realizing it. In cases with business partners being related or friends, the grudge you’re holding in a personal relationship can be the cause of your misjudgement. Talk it over, be an active listener and remember why did you believe they were reliable in the first place. Understand that you might have different roles in the partnership, but that they are both (or all) necessary for the structured organization to maintain a healthy and prosperous business! Put the pursuit of an amicable resolution for both parties as a priority.

That being said, certain situations such as frauds do require serious steps in order to protect your intellectual and material property. This is non-negotiable because sometimes people do not think of consequences their actions may have to other people involved. For example, embezzlement of money and mixing personal and company accounts will be a liability for all the involved parties, not just one who actually committed the fraud. Do not put your business and time invested in risk! If you notice even the smallest discrepancy in the financial sector, immediately consult with a professional in the specific legal matter.

Conclusion

There are many benefits in having a support system, splitting the weight of the corporate world. A partner who shares your vision and has skills complementary to the ones you have will be an enormous asset. From delegation and decision-making to venting and celebrating success, working as a team sounds like a dream come true. Nevertheless, be aware that different perspectives can turn out to be limiting, not to mention dangerous! Try to prevent as many complications as possible, clearly define the roles and do your research thoroughly, in order not to regret such a major decision. Going out of your comfort zone with ideas and strategies can be scary, but the potential for something greater is at stake! You just need to find the right person.