Like most business owners, you rely on your business partner to help you run the company. But things can quickly become difficult if your business partner is not working to his/her full potential or fulfilling required responsibilities.
This article will provide tips on how to deal with a business partner who is not working. We’ll cover everything from addressing the issue head-on to renegotiating roles and responsibilities. So let’s dive right in:
4 Ways You Can Restore The Equilibrium in Business Partnership:
Address the Issue
It’s essential to address the issue as soon as possible. This way, both parties can move on from the situation in a better way and continue working together smoothly.
Communication is the key that can open even the hardest doors.
In any business relationship, resolving conflicts or issues should be done with an open and honest chat first.
For example, you can discuss your observations and what has been going on, and how this is affecting the business. Additionally, try to devise a solution that works for both of you.
Be respectful and understanding as your partner may be going through a hard time in their personal life that you’re not aware of, and maybe that’s what’s affecting their performance.
Also, make sure to resolve conflicts face-to-face rather than through email or text messages; it’s more effective.
Ideally, each party should put in an equal amount of effort with respect to their responsibilities and equity share. If things are not going forward as per your planning, ask yourself if maybe you’re expecting too much or unfair effort from your partner.
You need to ask yourself if the expectations you have from your business partner are realistic to their equity/role. But if you conclude that they’re consistently not meeting the obligations that you both set when you entered into partnership, it’s time to clarify things and realign expectations.
Renegotiate Roles and Responsibilities
It can be tough when business partner relationships start to break down. To save the situation from deteriorating any further, it’s important to renegotiate roles and responsibilities.
Maybe one party is doing more than they’re supposed to, while the other party is not even meeting them halfway? It’s crucial to have a detailed discussion about the situation so both parties can devise a solution.
Ask your partner if they cannot take on the workload or responsibilities like in the past; maybe they can renegotiate downwards into the corporate structure like taking less pay, reducing workload, responsibilities, and ownership percentages.
For instance, you can make them an advisor and reduce their workload while also reducing the equity.
Remember that you need to be very careful and fair when increasing or decreasing the equity, salary, workload, and responsibilities, as these things can further escalate clashes with your partner.
Pursue Legal Action
If your business partner is not meeting their responsibilities and you’ve exhausted all ways of making them work with you, taking a legal step is important. The right action will depend on the specific facts of your situation, but taking a decision quickly may likely reap a positive outcome.
Many options are available, depending on the specific circumstances of your case. Some common ones include mediation, arbitration, or court proceedings.
Talk to a business attorney if you feel like you may have a legal case against your partner. They will be able to provide you with advice and guidance and help you take the necessary steps to resolve the situation.
4 Tips for Searching for a New Business Partner
Ask around for recommendations
When it comes to business partner selection, it is always advisable to ask around for recommendations. This will keep you from making mistakes that may be irreversible and ensure you partner with someone known by people in your circle.
Remember that finding the right business partner takes time – so be patient! However, if everything goes well and both parties are satisfied with the arrangement, a long-term partnership can be formed.
Do a Background Check
A thorough background check on your potential business partner is crucial before you sign any deals or commit any resources.
Check out their past businesses, finances, and work history to ensure they are legit and have the skills required for running the business with you.
Contact people who know them personally and ask questions about how they are in general life, whether they are trustworthy, and whether they fulfill promises they make.
It’s always good practice to be doubly sure that your potential partner possesses integrity and honesty!
Consider If They Are a Good Cultural Fit for Your Company
Do your research and make sure the person you are looking to partner with shares similar values and philosophy as your company.
Look for someone with experience in the same industry or sector as yours – this will establish trust and understand each other’s strengths and weaknesses.
It is also important that both parties feel comfortable working together long-term, regardless of any disagreements that might arise from time to time.
This can only happen when both sides have mutual respect for one another and an agreement on how best to move forward in partnership.
Discuss the Problems You Had With the Last Partner
Being upfront and honest about the problems you’ve had with the last partner is important. This will help avoid any misunderstandings or arguments down the line.
Additionally, set clear expectations from the outset – if things don’t go according to plan, be willing to walk away without resentment or bitterness.
Partnerships Collapse When Responsibilities Are Not Fulfilled
On the whole, starting a business and becoming successful requires joint efforts. Have you ever tried working with someone who was not willing? Well, that is how most businesses fail in the long run.
So make sure to talk things out with your partner. Ensure they are back to performing their share of duties. If not, you can always knock on the court doors and sort things out this way.