Whether you’re talking about a personal relationship or a business relationship, maintaining peace is not always easy. As humans, we are prone to misunderstandings and disagreements, and if we don’t take steps to deal with those inevitable challenges, there is a high likelihood of the partnership dissolving. When it comes to business partnerships, the best way to avoid a breakup is to make sure that everything is out in the open from the very start of the relationship, and that every issue is explicit – meaning documented – rather than simply understood via a verbal agreement. Let’s take a closer look at how to avoid assumptions through open discussions and then how to codify understandings and agreements by putting everything in writing.
When you and your partner (or partners) first agree to form a partnership, it is essential that you address details large and small. These should include:
- The type of business you are running
- The goal of your business
- What each partner will contribute
- The extent of each partner’s commitment
- Whether partners will provide credit lines or loans and how they will be repaid
- What happens if a partner wants to exit the partnership or is disabled or dies
By explicitly addressing each of these issues at the outset, you will be able to avoid misunderstanding and make sure that everybody involved is in agreement or, if not, discontinuing the partnership conversation.
Once all expectations and understandings have been disclosed and agreed to, the next step to avoiding a business partnership breakup is to put everything in writing. By reaching out to an experienced business attorney, you can work together to craft a written business agreement that addresses all aspects of your business operations, including procedures for addressing dispute resolution, loans, partnership obligations, questions of intellectual property and how the partnership can be dissolved in the future.
By keeping the lines of communication open from the very start and making sure that you’ve documented every aspect of your business relationship, you can avoid disputes and address issues that will ensure that the business can stay strong and healthy. To speak with an experienced business lawyer about crafting a strong business agreement, contact us today.