4 Signs It's Time to Cut Ties with Your Business Partner | Fora Financial
Close
4 Signs It's Time to Cut Ties with Your Business Partner
May 28, 2018
Signs-Cut-Ties-Business-Partner

4 Signs It's Time to Cut Ties with Your Business Partner

Having a business partner can have significant benefits; you can share the workload that comes with running a business, bounce ideas off each other, and ensure that the pressure of success isn’t solely on your shoulders. Unfortunately, not all business partnerships are advantageous, and some can even affect the future of a company. In fact, up to 70 percent of business partnerships end up failing.

If you have a business partner and are unhappy with the situation, it may be time to move on. Of course, every disagreement or challenge doesn’t warrant parting ways, but there are certain issues that indicate that a partnership is no longer mutually beneficial. In this post, we’ll list four warning signs that could signify that it’s time to end a business partnership.

1. You Have Frequent Disagreements

When working closely with another individual, you’re bound to have differing opinions from time to time. This isn’t abnormal, and at times it can be good to have a healthy debate about how you can better run your business.

Still, if you find yourself consistently fighting with your business partner, this could be an indicator that your partnership isn’t sustainable in the long-term. Not only does frequent fighting mean that you aren’t seeing eye-to-eye about business matters, but it can also cause unnecessary stress. Instead of continuing to fight, it might be better to discuss dissolving your partnership and moving forward in separate endeavors.

2. You Don’t Trust Them

There are certain traits that all business partnerships should have. For example, your business partner should be someone that is trustworthy. From your business’s finances to handling personnel issues, this individual should be honest. If this isn’t the case, your business could be at risk, and so could your personal finances. This isn’t an area you should ignore, and you should cut ties as soon as possible.

3. You’re Putting in Significantly More Work

In a partnership, both individuals should be putting in equal effort. If one individual is completing more of the work, it’s unfair, and that person will likely become burned out or resentful. If this is the case in your partnership, you should discuss this with your partner. Explain why you feel like you’re handling more of the responsibilities, and try to devise a plan to make the workloads fair moving forward. If this continues to be a consistent issue, it might be best to move forward alone.

4. You Can’t Agree on Your Business’s Future

If you and your business partner have vastly different ideas or plans for your business’s future, this can be a major point of contention. It’s important to ask outside council for their input, so that you can try to make the best decision for your business. Still, you may have opinions that differ too much, and because of this you could be unable to come to an agreement. If this is the case, it could be better to part ways, rather than continue to disagree.

Next Steps

After reading this post, you might conclude that it’s time to dissolve your business partnership. If this is the case, you’ll need to determine if you’d like to buy out your business partner, sell them your portion of the business, or dissolve the company entirely. This won’t be an easy decision, but it’s imperative that you consider your own finances and the business’s success moving forward. Ultimately, any of these avenues will probably be better than remaining in an unhealthy, combative partnership.

If you’ve cut ties with a business partner, share your experience with us in the comment section below!

Fora Financial

Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved, or otherwise endorsed by any of these entities.

Fora-Logo_TEAL-KNOCKOUT
Post by:
Fora Financial is a working capital provider to small business owners nationwide. In addition, the Fora Financial team provides educational information to the small business community through their blog, which covers topics such as business financing, marketing, technology, and much more. If you’d like to see a topic covered on the Fora Financial blog, or want to submit a guest post, please email us at [email protected].
Yahoo Gemini