Business partner disputes can be very complicated. Two people may not see eye to eye, and it can become difficult to make decisions. After all, if both people own 50% of the company, then they have to work together on these important decisions, rather than letting one person make them on their own.
One way to reduce the odds of such a dispute is simply to find the right business partner from the beginning. So what are some of the things you should look for?
Complementary skills
Start by looking for someone who has the skills that you do not already possess. Perhaps you are great at product design and the day-to-day activities of running the business. You may want to look for a business partner who has exceptional people skills and can help with networking and growing the company. Not only does this make your business stronger, but it also helps to ensure that you both have different roles and reduces the chances you’ll run into a dispute.
A similar vision
It’s also helpful if both business partners have a similar vision for what they want the company to be in the future. This way, both of you are working toward the same goals, rather than feeling like you’re working against one another.
Agreeable financial terms
It’s important to talk about the financial side of the business from the very beginning. How much money will each of you have to invest in the company? How are you going to be paid? When the business makes money, how do you split up the earnings? Many partnership disputes are financial in nature, so making these decisions in advance helps to prevent them.
That said, disputes can still happen, so it’s very important to understand all the legal options at your disposal.