It’s a new year, full of promise and opportunity.\u00a0 But if you are stuck in the same bad business relationship that held you back last year, being optimistic about 2017 can be a challenge.<\/p>\n
Owning a business is hard enough.\u00a0 Running that business with a partner who no longer shares your goals, values, or work ethic is a harbinger of failure.\u00a0 If you find yourself nodding in agreement as you read this, it may be time to leave your business partner behind.\u00a0 But how?\u00a0 The tips below can help you think about how to extricate yourself from an unproductive business relationship, allowing you to move on to better ones.<\/p>\n
Determine Rights and Obligations Do Not Help Yourself to Company Property or Data Decide Where You Want To Go Next Tell Your Business Partner You Want Out Negotiate From a Position of Strength Agreeing on an amicable separation plan is best, but not always possible.\u00a0 If your partner is unwilling to negotiate in good faith, stop trying.\u00a0 Appeasement doesn\u2019t work.\u00a0 Part of negotiating from a position of strength is knowing when to stop negotiating.\u00a0 You have options.<\/p>\n You can walk away<\/u>.\u00a0 Depending on your circumstances, you can abandon the sinking ship.\u00a0 While doing so may result in significant sacrifice, financially or otherwise, it can also be liberating.\u00a0 As Paul Simon put it, \u201cJust drop off the key, Lee, and get yourself free.\u201d<\/p>\n You can stay<\/u>.\u00a0 Remaining in the partnership, even a dysfunctional one, may be an option.\u00a0 This is rarely fun, but it is probably just as unpleasant for your partner.\u00a0 A few weeks of this is sometimes enough to bring your partner to a more reasonable position.\u00a0 Alternatively, it might drive you crazy, so proceed with caution.<\/p>\n You can fight<\/u>.\u00a0 When negotiations fail, and neither staying nor walking away are viable options, litigation may be.\u00a0 Through a lawsuit, you may be able to recover damages for malfeasance, resolve disputes about ownership and compensation, and perhaps even dissolve the business and divide its assets.<\/p>\n Get Professional Help Life\u2019s too short for bad business relationships.\u00a0 Move on and move up.<\/p>\n","protected":false},"excerpt":{"rendered":" It’s a new year, full of promise and opportunity.\u00a0 But if you are stuck in the same bad business relationship that held you back last year, being optimistic about 2017 can be a challenge. Owning a business is hard enough.\u00a0 Running that business with a partner who no longer shares your goals, values, or work […]<\/p>\n","protected":false},"author":13,"featured_media":869,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_mo_disable_npp":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[4,195,6,8],"tags":[],"acf":[],"yoast_head":"\n
<\/u><\/strong>You and your business partner(s) have rights against and obligations to each other and to the business(es) you own together.\u00a0 You may have similar rights and obligations to landlords, lenders, vendors, and customers.\u00a0 Sometimes, these rights are formally memorialized in shareholders agreements, personal guarantees, employment contracts and other corporate documents. \u00a0Maybe it\u2019s just in an email or on the back of a napkin.\u00a0 Whatever the format, gather and digest this information.\u00a0 Figure out, at a high level, who is obligated to whom, for what.\u00a0 From there, you should be able to gauge, in broad terms, who delivered, and who didn\u2019t.\u00a0 What needs to happen for this partnership to end?\u00a0 Are there loans, leases, or other long-term obligations to be factored into an exit plan?\u00a0 Are there potential buyers for the business?\u00a0 Make a list of the obstacles between you and a clean exit.\u00a0 This would also be a good time to confirm that you have access to the information and critical infrastructure of the business.\u00a0 Does your partner generally handle the company\u2019s finances, or manage the server network?\u00a0 Have a look at the books.\u00a0 Make sure your passwords and keys still get you where you need to go.<\/p>\n
<\/u><\/strong>Particularly when your partner is being difficult, it can be tempting to help yourself to an extra distribution, or to forward the company\u2019s customer list to your home computer.\u00a0 Resist the urge.\u00a0 You might own a piece of the company, but company property belongs to the company.\u00a0 Taking it will get you sued.<\/p>\n
<\/u><\/strong>If you don\u2019t know where you\u2019re headed, it\u2019s unlikely that you\u2019ll get there. \u00a0Figuring out what you want to do next is an important step in breaking with a business partner.\u00a0 Do you want the business?\u00a0 Do you want to remain in the same industry?\u00a0 With a goal in mind, you can chart a course to get there.\u00a0 Settling on a destination has a second advantage.\u00a0 It focuses on the future, not the past.\u00a0 Whatever the reason, your business relationship is ending.\u00a0 If you could fix it, you would have.\u00a0 Understanding what went wrong with the partnership is valuable, but dwelling on it is unproductive.<\/p>\n
<\/u><\/strong>Depending on your situation, this may be the easiest or the hardest part of your exit.\u00a0 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 and that you want out.\u00a0 Offer to cooperate in a smooth transition.\u00a0 Consider waiting for a response before sharing your business transition laundry list. You might be surprised.<\/p>\n
<\/u><\/strong>The information gathering and soul searching exercises described above will help you figure out the result you want and to determine the leverage you have to achieve it.\u00a0 While it may seem counterintuitive, consider what your business partner would want if she performed the same analysis. This is not altruism, it is sound negotiation. \u00a0The more you understand about your partners\u2019, goals, interests, limitations, and opportunities, the more negotiating power you have.\u00a0 Good negotiation is looking out for your own interests, while framing your communications in terms of the interests of the person with whom you are negotiating.<\/p>\n
<\/u><\/strong>Breaking with a business partner can be stressful.\u00a0 Don\u2019t go it alone.\u00a0 An experienced attorney, accountant, and business advisor can relieve much of the anxiety associated with a business divorce and can help you make informed, level headed decisions.<\/p>\n