Breaking up with your business partner can be tough. Similar to a divorce, when people decide to become partners (or spouses) they don’t expect to go separate ways. Unfortunately, goals and values change over time and ultimately create disagreements and tensions between partners. If the direction of the company changes and your business partner is no longer a good fit, you should start discussing what’s best for the company.
Be prepared to break up with your business partner
Business partnerships can end for a variety of reasons. Some reasons are expected, some are not. Most importantly, you and your partner should have drafted an Operating Agreement when you first started working together. This legally binding document includes a dissolution strategy among other details about the partnership. An Operating Agreement allows you to avoid never-ending negotiations once your partnership comes to an end.
Kent Healy, an entrepreneur and investor, began preparing for the his partnership break-up by learning more about the business processes his partner has been responsible for. He also sought legal help to guide him through the split up. It’s important to stay objective in those conversations, he says, and separate frustration from day-to-day business activities.
Start setting your business partnership up for success with our 4-step process of creating Operating Agreements. Visit http://speralaw.com/louisiana-operating-agreement to learn more.