What are possible solutions to operational partner disputes?

| Feb 25, 2021 | Business Law |

Business partnerships may distribute responsibilities between partners in different ways. Sometimes partners have equal responsibility for managing the business while in other arrangements the partners take on different tasks. So, if you feel your partner is not fulfilling his or her duties as you expect, it could lead to conflict. 

Ideally, you should have arranged partner responsibilities in a written agreement, perhaps in your original business contract. If not, you may have to find a solution to your dispute. Business News Daily describes some possible solutions to operational partner disagreements. 

Redistribute business tasks

There may be a reason your partner isn’t performing as you expect. Some partners become unproductive because their duties are too difficult. A partner can also become burdened by an excessive workload. You may have to reshuffle partnership responsibilities so that your partner has duties he or she is best skilled to handle, or you might divide the labor more equally. 

In the process, you may have to change the pay structure of your partnership. You and your partner should feel comfortable with how much each of you receive in compensation. If there is a change in partner responsibilities, you or your partner may need a pay raise or cut to go along with the new division of labor. 

Bring in outside help

It is possible a solution may elude both you and your partner. If so, you may bring in outside assistance to look at your situation and offer advice. You and your partner could ask another party to invest in your business and consult with you on decision making. You might find another perspective will be of benefit. 

Change the business leadership

If your dispute becomes too contentious, you may consider dissolving the partnership. If you have a buyout clause in your contract, you could buy out your partner or your partner may buy you out if you want to pursue opportunities elsewhere. As an alternative, you or your partner may decide to step down as an active participant in the business but stay on as a stakeholder. 

Some partnerships end up going to court to resolve their dispute. While this may be an option for you, be sure that you have exhausted the rest of your options to restore harmony to your business.