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3 steps to avoid a dispute with a new business partner

If you want to avoid a dispute with a business partner, you need to take steps to prevent misunderstandings or a breakdown in communication. The reality is that most disputes happen when people can’t get on the same page as one another, but they should be thinking about the company and the business in the same way at the start.  

Why should they be? They should have a solid contract that describes their roles, what they expect and how the company is going to move forward and grow. Both parties need to know when to be flexible and negotiate. Business partners should also know when to let the other partner’s idea take precedent.   

How can you avoid disputes with a business partner? 

The first thing you can do is make sure you select the right people to work with. A good business partner is someone you can see yourself working with, that you get along with and that brings out the best in you and the company. Usually, business partners don’t participate in the work in the same way. For example, your priority may be marketing, and theirs may be accounting and financing. Make sure you can work together and mesh well. 

Another step to take to avoid a dispute is to have a contract that clearly outlines your roles and what happens if there is a dispute. For example, your contract may state that all partners have to agree on major purchases over a certain cost and that disputes need to be handled in arbitration.  

Finally, the third and final step to avoid disputes is to know when to negotiate and when to walk away. Sometimes, people don’t agree on decisions that are made or aren’t happy with the current terms that someone is pitching. Know when to negotiate and work through an issue and know when to let the other person have their way. Sometimes, two people have different ways of doing things, but both options will move the company forward.  

If there is a major dispute that cannot be resolved, turn to your partnership agreement for a resolution. There should be information on how to resolve disputes and what to do if a partner would like to end their business with the company.