Running a business with a partner can provide invaluable benefits such as bouncing new ideas off one another, leveraging each other’s networks and offering mutual support. Naturally, you expect them to contribute to the company as much as you do. If they start performing poorly, it could jeopardize operations.
It can be frustrating to work with a partner who is not pulling their weight. However, dealing with this internal conflict professionally is essential to protecting your business’s brand and position. Here are a few approaches to navigate this situation:
Talk to your partner
Personal struggles can have a detrimental impact on work performance. Problems at home, with health, or with money can all interfere with a person’s ability to give their best. In other cases, a business partner fails because of impossible standards, miscommunication or a conflict of interest.
Getting to the bottom of things can save you from making assumptions and allow you to address the issue. When approaching your business partner, refrain from being defensive or hostile. Consider things from their perspective and collaborate to develop strategies for improving outcomes.
Review your partnership agreement
Take time to review your partnership agreement. The contract should detail what happens if one party is unable to fulfill their duties. It may be possible to resolve the matter amicably or to have them removed for breach of contract, depending on the terms of your legal document.
However, there may also be numerous exceptions buried in the fine print. Working with a business law attorney can be invaluable in such situations as they can recommend what actions you can pursue. If you decide to take your business partner to court, they can build your case and fight to protect your interests.
Consider ending the partnership
Not everyone is capable of change, and not all business relationships can be repaired. Despite your best efforts, the partnership may simply not work out. It may be best for each party to part ways.
While ending a partnership might cause tension and disagreements, it is still possible to maintain a good personal relationship. However, you may have to make a compromise. Before approaching your business partner about terminating the agreement, consider what you are willing to give up.
Handling an underperforming business partner can be tricky. Whether you choose to continue the partnership or sever ties, seeking advice from a lawyer can be instrumental in navigating and resolving such business disputes.