Business partnerships can be great if you have the right partner, you maintain good communication and there is clarity about the arrangement. However, not all partnerships stand the test of time.
All businesses have troubling times, and there are some signs that a partnership is struggling. Being able to recognize them may help save the relationship before it ruins the business.
Signs that a partnership is having difficulties
According to Small Business Trends, there are some signs that indicate a partnership may be heading south. These include:
- Vague answers or avoidance of questions
- Consistent lack of responsibility
- Lack of focus or enthusiasm
How to prevent many disputes
Some partnerships run their course and there is no fixing them. However, if the relationship takes the right steps from the start, there is a reduced chance of trouble in the future. When choosing a partner, make sure he or she shares a similar vision, mission and goals for the business as you do. The two of you should have strong communication from the start, and both of you should be able to trust the other.
According to the U.S. Chamber of Commerce, having a partnership agreement is one way to prevent disputes and confusion along the way. The more detailed the agreement is, the better. However, there are some terms that all agreements should address. These include the financial and daily contributions of each partner, the ownership percentage of each partner, the division of losses and profits, binding power and strategies for partnership withdrawal or death.
There will usually be ups and downs in partnerships. However, there are some telltale signs that indicate the relationship is no longer working out.