Sometimes, a previously successful partnership can turn dysfunctional. Misunderstandings and unresolved issues can fester, undermining productivity and trust. Fortunately, some soured business relationships can be salvaged through candid discussions and a renewed commitment to shared goals. Other times, it pays to simply tear the band-aid off. Determining the difference successfully often results from tough, candid conversations between partners.
Fixing a Dysfunctional Business Partnership
Through candid conversations, a new or more formal delineation of roles and responsibilities, and a renewed commitment to the business, a dysfunctional business partnership may be salvaged. It’s probably worth the effort; just be realistic about the odds of success.
Running a business at a profit is hard enough. Trying to do so well also restructuring the business relationship between its owners brings another level of complexity entirely. Imagine trying to renovate a house and reconcile a marriage at the same time. If that sounds feasible, perhaps you were up for salvaging your partnership.
Even if you are intent on improving, rather than ending, your existing business partnership, you would do well to have an exit strategy. Having an “out“ gives you options, and options are liberating.
Having an exit strategy also enables you to negotiate from a position of strength. Although you may be willing to entertain the restructuring of a business relationship, it is important that your partner understand that you were prepared to walk away. Think of it as ending your existing partnership, and then working towards the formation of a new one with the same partner, but on better terms.
Ending a Dysfunctional Business Partnership
If, after a few candid conversations, thinking of your business partner makes you grind your teeth, you should probably end that relationship while you can still chew. In no uncertain terms, tell your partner that you want out. Depending on your situation, this may be the easiest or hardest part of this process.
If you can stomach it, do it in person. Briefly suggest a later time to meet again to work through logistics. If that will not work for you, send a short email explaining your desire to separate, and suggest a follow-up meeting or dialogue.
Practice with a friend, or give them a draft of your correspondence and a red pen so that they can delete all of the passive-aggressive parts that you were too angry to see. As tempting as it may be, this conversation is not the time for you to air your grievances. Doing so will only make your partner defensive, and invite infective back on you.
Whether you schedule a meeting over coffee or send an email, explain in clear, respectful, non-accusatory terms that the business relationship is no longer working for you. Offer to cooperate in a smooth transition. Give your partner time to respond before you launch into how you think the transition should occur.
You might be surprised at what your partner has to say. Listen, then politely make your exit. Even if your partner gets nasty, bite your tongue, thank him for his time, tell him you’ll be in touch, and leave. Then smile to yourself, knowing that you are in control of your emotions, and that your partner is not. You shouldn’t go to the grocery store when you’re hungry, and you shouldn’t negotiate when you’re angry. Neither should your business partner.
Follow-Up
If the initial conversation goes well, schedule a more comprehensive meeting to talk logistics.
Develop a list of talking points. If a face-to-face dialogue will be uncomfortable to the point of being disruptive, continue your dialogue through email or counsel. Again, have your lawyer, or a friend, review what you plan to send to keep it sanitized. Don’t be the one who likes the dumpster fire. And if your partner lights one, don’t pour gasoline on it. Spilling raw emotions in an angry outburst or email might feel good at the moment, but that outburst might cost you tens of thousands of dollars in legal fees, not to mention opportunities and even lost sanity. Keep it civil. You’ll be glad you did.
A Primer on Tough but Effective Conversations
Whether you are trying to put the train back on the tracks or just trying to get yourself free, conversations of this magnitude are hard.
So, where should you begin? One great resource is How to Have Tough Conversations by Amanda and Gene Hammett. This practical book, lauded by Forbes and Inc. magazines, offers a step-by-step process for preparing for a conversation like the one contemplated in this post. It is worth a read.
I spend a lot of my time helping entrepreneurs who find themselves in unproductive business relationships. If you are having difficulty communicating with a business partner, or have lost the desire to even try, I’m here to help.
Healthy business relationships are an essential component of business success. When disputes cause business relationships to sour, declining productivity and revenues are sure to follow. Bill works with business owners to bring successful and efficient resolution to a wide variety.
