It isn’t uncommon for business partners to have disagreements from time to time. However, if you have a disagreement with your business partner, it is important to keep the dispute as quiet as possible. Allowing a dispute to go public could put the future of your New Jersey company at risk. Take a look at some of the common causes of conflicts between business owners and how to prevent them.
Everyone is trying to be the boss
Ideally, a partnership agreement will clearly specify each owner’s role within the company. For instance, you may have the authority to oversee the marketing department while your partner is in charge of all other aspects of the company. Having a clear management structure can help to ensure that the business runs at peak efficiency while also keeping owner disputes to a minimum.
One person is stuck doing all of the work
There should be a strong correlation between the allocation of workplace responsibilities and the allocation of company profits. In other words, if you are doing 75% of the work, you should be receiving 75% of the profits. Conversely, if your partner does 75% of the work, he or she should be getting roughly 75% of the profits. Otherwise, there is a strong possibility that whoever is doing the bulk of the work running the company will resent the person who is getting paid for doing less.
There are two different visions for the business
You and your partner need to have a shared vision for how to grow and expand the business. Without this shared vision, there is a possibility that the company will split into two different organizations or stop operating altogether.
If you are going to own a company with a partner, it is generally a good idea to have a formal partnership agreement. A business law attorney may help draft the agreement or review an existing document to ensure that its terms are reasonable and comply with state law.