Whether your partnership started off great or you struggled from the beginning, you may have mixed emotions if you are facing a dispute that you feel can only reach a resolution through litigation. Business partnerships have a lot in common with marriages, and the breakup of your partnership may be placing a great deal of your life on the line.
You may find some comfort in knowing you are not alone in facing a failing partnership. Data shows that about 70% of partnerships fail, and many for the same reasons. It may help to understand some of the more common factors behind the breakdown of business partnerships.
Are you dealing with these issues?
The work you put into creating a partnership may give you an advantage. If you and your partner worked out a solid contract, addressing many common contingencies, you may avoid the pitfalls that frequently create a rift between partners. However, even a well-thought-out contract cannot save every partnership. Here are some of the top reasons why partnerships fail:
- Your personal relationship with your partner got in the way of your business relationship.
- One partner did not contribute as much time or money to the business as the other.
- One partner’s personal life interfered with his or her commitment to the business.
- One partner became discouraged or impatient because the business was not immediately successful.
- You and your partner had the wrong motivation for starting a business, such as wanting to get rich quick.
- Your personality and skills do not complement those of your partner.
Partners, like spouses, can often work through these problems and achieve success with the right guidance and assistance. Unfortunately, when trust breaks between partners, it often signals a death knell for the partnership. A partner who lies, steals, behaves unethically within the company or uses illegal business practices puts you at risk. He or she may cost you money, damage your professional reputation and even place your family at risk.
If you are dealing with a partnership dispute that you cannot resolve on your own or through mediation, you would be wise to learn as much as you can about your legal options. You have placed your time and resources on the line for the business, and it is important that you minimize any damage the breakup of your partnership may cause. The assistance of a skilled litigation attorney may prove beneficial in meeting your goals.