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What are my options for handling a bad business partner?

On Behalf of | Dec 7, 2022 | Business |

Initially, you and your business partner were ready to take your industry by storm. You discussed your company’s potential and were prepared to give everything you had to the business.

Now that some time has passed, the story has changed. Rather than an enthusiastic and supportive partner, you may face challenges that could threaten your company’s success.

Here are a couple of ways you can deal with a difficult business partner.

Start with a conversation

You and your partner went into business planning to work through challenging times. When facing a conflict in your partnership, it may be time to discuss what changed and how you want to approach a solution.

In some cases, your partner may be unaware of the shift in responsibilities or that they have done something inappropriate. There may have also been a situation that was supposed to be temporary that became permanent. You may find that you can discuss the situation and arrive at a solution to continue working together.

Buy out their share

If you cannot find a resolution for your challenges, you may need to dissolve the partnership. You should look at your original partnership agreement to determine how to move forward with ending the partnership.

In many cases, ending the partnership means agreeing to either dissolve the company or buy out your partner’s share in the business so that you can continue as the company owner. Also, depending on the business structure and agreement you had with your partner, you may need to file for a new entity if you continue alone.

Dealing with a partner that is no longer fully invested in the business can come with many challenges. Talking to an experienced professional about your path forward is essential.