At the start of your venture, you and your business partner were likely full of ideas, passion, and enthusiasm.
Yet, after many months or years, you might have realized you’re no longer on the same page, which may affect the company’s performance, productivity, and revenue.
For the sake of your brand, employees, and personal finances, you must make changes to run a more efficient and profitable venture.
Continue reading to learn what to do if a business partnership isn’t working.
Communicate with Your Business Partner
Partnership problems may stem from poor communication, which might be easy to fix.
If you are eager to make the venture work together, you must have an open and honest conversation with your business partner.
It is vital to avoid accusations or hostility when discussing your observations or concerns.
A quick chat could get to the root cause of a partner’s disappearance from the business, mistakes, or poor performance.
For example, your partner may have endured personal issues that have affected their ability to perform.
Contact a Qualified Lawyer
If you believe there is no turning back after a partner’s bad performance, unprofessional conduct, or deception, it might be time to contact a qualified lawyer at a reputable firm.
Reach out to Padua Law if you have trouble resolving a partnership dispute, especially if they have breached a contract, displayed misconduct, or you are clashing over the brand’s direction or business operations.
The correct legal assistance can make a partnership dissolution much easier, as an experienced lawyer will protect your rights and could potentially help you hold onto the business.
Restructure the Business Equity
If you don’t want to end a partnership but believe you deserve a larger share of the profits for your hard work, it might be beneficial to discuss restructuring the equity.
It will be a tricky conversation to have with a business partner, which is why you must approach it strategically.
Discuss how it is becoming impossible to imagine a future at the business under the same conditions, especially if you feel you’re doing the lion’s share of the work.
After expressing your issues in a calm manner, suggest renegotiating the equity split to ensure you receive a fair share for your performance.
It is unlikely a business partner will agree to a smaller equity stake in the business right away.
For this reason, you must ask them questions to validate how hard you have been working (and the lack of effort they have made), which could convince them to accept a smaller share of the company.
Business partnerships have challenges, but they should never come at the cost of a company’s financial security, reputation, or longevity.
If your business partner isn’t pulling their weight, has stolen from the business, or has poor conduct that’s affecting the brand’s image, you must nip the problem in the bud.
Don’t continue to endure a poor partnership. Make big changes to ensure the company’s survival and growth, and the above options might be the best way to do so.