Working with a business partner has its perks. Since two people manage the business, there’s more room for innovation. Overcoming difficulties and challenges is also easier. A partnership accelerates business growth and is more rewarding than a ‘do it alone’ approach. However, it’s not all the time that business partners will see eye to eye. Disputes may arise no matter how aligned the partners’ goals are.
If you and your business partner can’t agree on a critical issue, your business can be at stake. Disputes can be solved, no matter how complex they are. Yet, it’s still essential to have a neutral mediator to guide you. According to business litigation attorneys in Newport Beach, unattached third-party advisors can help you resolve the conflict and decide accordingly.
Ways in handling disputes with your business partner
Collaboration is crucial for the success of the partnership. Yet, aside from this, partners need to know how to manage conflicts when they arise. After all, it’s one of the reasons why a business fails. Resolving them as quickly as possible can keep the business up and running.
Here are some practical ways to handle disputes with your business partner.
Draft a partnership agreement
Managing the business with another individual means sharing tasks and responsibilities. Draft an agreement explaining each party’s duties. Include provisions about capital contributions, compensations, and circumstances leading to the culmination of the partnership.
The agreement must be specific and should cover all critical points. When disputes arise, you can refer to the said agreement for resolution. Neither party can go against the written provisions with this document governing the partnership. It’s easier to have the agreement in black and white. You can use it in court should there be unresolved conflicts.
Communicate openly and respectfully
Various factors can trigger stress in a business. This could include financial management, customer service, regulation and compliance, and uncertainty about the future. Business partners could also get overwhelmed by the pressure. Hence, they get on each other’s nerves.
You and your business partner should sit down and talk things out. Listen to the merits of your opinions before coming up with a collective solution. Your goal should not be about winning the argument but understanding, negotiating, and compromising. Do this for the betterment of the business.
Lay down facts
Establishing the facts is the best method in overcoming disputes. If you both have different perspectives, it’ll be impossible to settle the argument. Chances are, you’ll exacerbate the problem. One of the most crucial things to do is to reflect on the issue, establish the facts, and outline possible resolutions. When you’re done with all these, sit down and discuss. This will help you resolve the matter level-headedly.
As much as you can, avoid confrontations. Don’t let your emotions cloud your judgment. You could aggravate the situation if you already blame your partner before even talking it out. This will be detrimental to your business.
Additionally, learn how to be empathetic and understand the other person’s perspective. In that case, you’ll know where they’re coming from. You’ll also understand their motivations and aspirations. This will help you get to know them better.
Release the tension
The tension may still linger even after the issue is resolved. Don’t worry because this is perfectly normal. Lighten up the mood by going out for lunch or grabbing coffee together. Through this, you can rebuild the relationship and start again. You can also begin discussing your business without getting anxious.
Seek legal assistance
When a simple discussion is not enough, it’s best to have a mediator. The best person that can help both parties resolve their misunderstanding is a lawyer. With them around, both parties can present their ideas in a non-confrontational manner. Plus, your attorney can make the environment less antagonistic.
There’s no room for emotions to cloud your judgment when you discuss matters level-headedly. Your legal counsel can help you in this case. They’re experts in rational talks. They can also provide you with practical methods of addressing the problem without risking the business.
If you’re currently facing a dispute that you can’t resolve, better consider the help of lawyers that are experts in dispute resolution.