There are a few ways you could end up with a new business partner. A partner may leave their ownership interests to the successor in a will, trust, or other estate planning document.
Adjusting to a new business partner can be complicated in the best of circumstances. Typically, a successor spends considerable time learning the business and receiving training before taking over. Those who take over after the previous owner’s death don’t always have that luxury, however.
The First Weeks and Months
If someone relatively unfamiliar has become your business partner, you have scant time to waste. While getting your new partner acquainted with business practices, it is imperative to establish day-to-day roles, compensation packages, equity structures, and liability ownership. This includes establishing clear lines of communication and procedures for resolving disagreements.
This is also a great time to draft a partnership agreement if none exists. Some business partnerships exist without an underlying agreement because the partners have experienced nothing but smooth sailing and total agreement regarding business operations. A solid partnership agreement, however, is most useful when things aren’t going well.
Your ego may take a hit if you must mentor and educate your new business partner on the basics of the company. If the partner genuinely wants to learn their role and help the company succeed, a rewarding partnership may be within reach.
Nurturing the Partnership Long-Term
If you and your business partner can get past the learning curve and settle into a groove, the long-term outlook for the company may start looking a little rosier. Maintaining success in any business partnership means having transparent communications, staying true to your word, and pulling your weight.
When is it Time for Plan B?
You’ve tried almost everything to make things work, but it’s just not coming together. Unless you cannot stand to be in the same room as your business partner, it’s often best to try coming to an agreement before going to court. Perhaps your partner is unhappy with their role and would happily restructure the business or sell their portion to satisfy everyone. A business mediator might also be helpful in this situation.
If negotiations fall apart and the partner is not making decisions that benefit the company, a court may force them to sell. Such a decision is usually the result of a long and expensive process.
A Knowledgeable Business Attorney Can Light the Way Forward
The most successful business partnerships have strong legal foundations. Partnerships that go south often require the help of an attorney. No matter what end of the spectrum your legal needs are, Bryant Taylor Law can help you reach your entrepreneurial goals discreetly. Schedule a call today for legal clarity on your business situation.
Bryant Taylor
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