Hyland Law Firm, LLC
Signs Your Kansas City Partnership is Headed Towards a Business Divorce
On behalf of Hyland Law Firm, LLC posted in Kansas Business lawyer on Friday, June 21, 2013.
Running a business is no simple task. However, it can be more challenging than necessary if two partners are often feuding. Of course, some degree of disagreement amongst partners is normal and can be expected from time to time. However, partners that are constantly battling are sure to interfere with a business' bottom line and future goals. Before your partnership becomes embroiled in a bitter business divorce, it is wise to speak with an attorney. A seasoned business litigation attorney can help decipher the true cause of disputes and may be able to offer you helpful options based on the needs of the partnership. The following are a few of the major causes of partnership disputes that can ultimately lead to the demise of a partnership and to a business divorce:
- Personality Conflicts: Like any relationship, business partners should complement each other-one partner's weakness should ideally be another partner's strength. Problems can arise when personalities do not mesh and can lead to serious trouble when personalities clash. Business partners often begin as friends and often do not plan for problems in the partnership. Sometimes personality conflicts can be resolved by mediation or minimizing contact between the conflicting partners.
- Incompatible Management Styles: Differing management styles can derail a successful business. Most often such problems arise when the partnership agreement is not clear as to the duties of each partner. Redrafting the partnership agreement can be a simple and cost-effective solution.
- Conflicting Expectations/Goals: One partner wants to expand the company while another partner wants to hold profits for maintenance and capital improvements. Conflicting goals are common growing pains as a business grows. A skilled business attorney can offer solutions so that partners can share in same vision for a company.
- Operating in the Red: Even if a business has all of the above problems, often partners are willing to overlook these differences if the business is turning a profit. However, once the business starts losing money, attitudes can quickly change. An experienced business litigation attorney, sometimes in conjunction with a forensic accountant, can examine the business records and determine the cause of the partnership's financial woes.
- Outside Stressors: Even a strong partnership can experience strain when one partner is under a great deal of personal stress. Divorce, death of a loved one, or illness can unintentionally cause problems for a partnership and a business. A knowledgeable business attorney can assist in putting the partnership back on track.
- Distrust: Trust is the cornerstone of any successful partnership. When trust erodes, suspicions can lead to accusations-which can quickly end an otherwise successful partnership. Often the source of distrust is regarding the management of money. A simple solution to this problem is often to improve communication amongst the partners.
If your partnership is crumbling before your eyes contact my office today to schedule a free and confidential consultation. The Hyland Law Firm has been advising business owners for over two decades. Trust an experienced business litigation attorney to protect your business interests and potentially save your business.