Going into business can be a risky thing to do, both financially and personally. That is why so many entrepreneurs in Minnesota will seek a partner to join them. Although having a business partner may sound like a good idea, it might lead to some sort of dispute down the line. From management styles to marketing strategies, there are several things that can lead to a dispute. The following includes a list of ways you can preemptively reduce or even prevent the chances of getting into a dispute with your business partner.
Create a written agreement early on
It may be uncomfortable talking about the negatives of a partnership so early on in your business, but doing so might just save it. One of the best ways to avoid getting into business litigation and other legal issues with your partner is to take the time to sketch out a written agreement. The agreement should contain items such as:
- Management rules and levels
- Financial spending and investing
- Division of profits among partners
Communication is paramount
Whether you have a written agreement or not, rapid communication is still the most important and most effective way to reduce the seriousness of a dispute. This is because the longer it takes for partners to talk about what’s bothering them, the more damage is done.
Bringing in mediators and arbitrators
In some cases, the issues may be so complex that a professional must come in to mediate the dispute. This professional will have no stake in the company and thus no bias toward either partner.
Even if the proper steps are being taken, it is still important to have a personal attorney at your side. This may ensure that you are gathering the right documentation along the way if the dispute heads to court.