How Do You Avoid a Dispute With Your Business Partner?
Business partners should work seamlessly together, staying focused on the goal of the organization. Unfortunately, whenever people work together, there is the risk that disagreements can arise. Disagreements can sometimes be a valuable opportunity as people presenting different ideas can create better solutions that move the company forward. However, disagreements can also devolve into destructive arguing that undermines the strength of the relationship between the co-owners and that jeopardizes the long-term interests of the company.
It is essential for business partners and owners to be prepared for what happens if they disagree. There are many options for resolving a dispute with your business partner, and an experienced Irvine CA corporate attorney can help you to explore solutions and find the best approach to take. Brown & Charbonneau, LLP has helped many business partners to come to agreements or to find ways to avoid disputes altogether. Call or contact us online today to learn how we can assist your company.
How to Avoid a Dispute With Your Business Partner
One of the best and simplest ways to avoid a dispute with your business partner is to create a partnership agreement (for partnerships) or operating agreement (for LLC’s) or shareholder agreement (for corporations) when you first start your company. The agreement should delineate the responsibilities and authorities being vested in each of the partners.
If business obligations and decision-making authority are divided, then each of the partners will be able to make choices for the good of the company independently. Each partner will need to trust the other with the tasks that have been delegated to him and there should be few situations where it is not clear who will make a decision on a business matter.
Of course, planning for all possible choices that must be made can be impossible, even with a comprehensive partnership agreement created by a qualified Irvine attorney. As such, your partnership agreement should specify how inevitable disputes and disagreements are to be resolved and you should follow the terms of that agreement to come together and find a solution to your differences.
Employment agreements, business plans, company charters and other related documents can also set forth the long and short-term goals of your organization as well as the responsibilities of each of the partners. The more comprehensive and detailed these documents are, the fewer disputes should arise since everyone should be on the same page and know how to move the company forward towards achieving success.
If there is a point about which you and your partner have a difference of opinion, you will want to ensure you listen with an open mind and keep your attention focused on what is good for the company. Don’t try to push your opinion or win the argument because this can cause you to become entrenched in your position and valuable opportunities for compromise could be lost.
If you are not able to successfully compromise on your own, mediation or even litigation may become necessary. Brown & Charbonneau, LLP can assist you in deciding how best to resolve your differences and can represent you in negotiations, alternative dispute resolution or litigation. Call today to learn more.