In times of economic struggle, many businesses fail to flourish. Some even falter to such a degree that they eventually end in disaster. However, some Florida businesses fail simply because they were born of a partnership that was doomed from the start, and a wide range of partnership disputes result. When considering if a joint venture is the best course of action, here are a few things to consider.
If the key players are unable to work out a mutually agreeable partnership agreement, the pairing could be doomed from the start. Engaging in serious discussion about each party’s vision for the business and how setbacks will be handled will give all participants the chance to evaluate each other’s goals and expectations. Avoiding this step can also be telling, and can indicate that one or both partners lack the proper level of commitment to the venture.
Another warning signal is an extreme imbalance regarding responsibilities. When one partner shoulders the majority of the burden in regard to tasks and duties, the result can be resentment and mistrust. Either response can erode an otherwise functional partnership.
It is also important to share the same goals in regard to financial success. When one partner seeks a significantly higher return on their investment than another, decision-making is often a problem. This can be an incompatibility that can be difficult to overcome.
A Florida business partnership can be compared to a marriage, in that the decision to team up can have lasting ramifications, both positive and negative. By taking the time to determine that the pairing is a good match, many obstacles to cusses can be avoided. Partnership disputes can be stressful, expensive and time-consuming, and any steps that can be taken to avoid such conflict are worth the time and effort.
Source: Forbes, “5 Signs Your Partnership Is Doomed,” Amanda Neville, March 15, 2013