A business partnership can be beneficial for so many reasons. You’ll have double the investment, somebody to collaborate with on ideas, and somebody to share the workload. I’ve just described the perfect working relationship, unfortunately, not all of them will be like that. Business partnerships can start to fall apart after a while, especially as the business grows or changes direction. Staying in a toxic business partnership can seriously hurt your company so you need to cut ties before it’s too late. But how do you know when a business partnership is dead?
Unbalanced Duties
A partnership should be equal. You’re splitting the profits down the middle so the workload should be the same. If you find yourself working until the early hours while your partner heads off early to go for a drink, something isn’t right. Don’t cut ties straightaway, mention it to them first. Tell them that you don’t think the workload is being split evenly and see what they say. If they apologize and start pulling their weight then you can move forward together, otherwise, you should get rid of them.
This problem can also work the other way around. If your partner is doing things without telling you and you don’t feel like you are involved enough then you should confront them about this as well. It’s half your business after all.
Their Departments Are Slacking
Lots of business partnerships tend to divide the workload based on their separate skills so they each handle certain departments. This is a good way of doing things as long as you are both holding up your end of the bargain. If the departments that you deal with are running fine but you are noticing shortfalls in your partner’s departments, they are holding you back. If they are having management issues then maybe they just aren’t cut out for this. Even though you might like them as a person, this is a business and if they can’t do their job then your profits will suffer. Again, speak to them first but if they don’t have what it takes then get rid of them.
Disagreements On The Direction Of The Business
Business partnerships often fall apart because of disputes about the direction of the business. It is likely that you were on the same page when you started the business together but things are different now. A company will change and evolve as it grows and market trends change, so it might be a completely different company to the one that you started a few years ago. While you might have a solid idea of where you want to take the business next, your partner might completely disagree.
Making these business decisions together is important. You could try to compromise but then your company isn’t going to have the clear direction it needs to succeed. If you both want a different type of business, it’s best to go your separate ways.
Partnership Agreement
A very early warning sign that you should look out for is a refusal to sign a partnership agreement. If they are not willing to put pen to paper when it comes to agreeing on the terms of your partnership, that indicates that they aren’t fully invested, or that they might be thinking of jumping ship fairly early on. A partnership built on these shaky foundations is unlikely to go the distance.
If you’ve experienced any of these problems, get out now before it’s too late.
