You and your business partner may not always agree. Sometimes, you could disagree on minor issues, and then one (or both) of you will simply need to compromise. One aspect of a solid partnership agreement is that it should lay out how you make decisions when you and your business partner are at an impasse.
But what if it’s something major and you both refuse to give up any ground? There are only two of you, so you can’t exactly vote on an issue if you don’t agree. How do you possibly come to a decision?
Your 3 main options for dealing with disputes
This is a tough situation, but talking it out isn’t always enough. One option you have is to work with a mediator. They may be able to guide you to a solution that you would not have come up with on your own. They can also inform you regarding your legal rights and your position, should you have any questions.
Another option is to go to court. There are cases where a judge has to rule. This isn’t always ideal, as you would rather make your own decisions about your business, but you can’t violate your business partner’s rights. The court may simply have to decide for you and you’ll have to abide by that order.
Finally, you and your business partner could decide to go your separate ways. This can be expensive, as one of you may have to buy the other person out, and it can also be detrimental to the business. With no other options on the table, though, perhaps this is just a partnership that no longer works.
A complicated issue can require guidance
No matter what you decide, it can become very complicated. You have so much on the line and you must know your rights so that you can protect your business, your brand, your finances and your reputation.