Business partnership disputes are not a rare occurrence. Most business partners find themselves at a crossroads when developing strategies for growth and development. In addition, they may even have different ideas regarding branding.
It is impossible always to see eye to eye in such matters, especially because there are no hard and fast rules for coming up with successful business strategies. In fact, the key to success is adapting and responding to the ever-changing demands of the market.
If you are planning to get into a business partnership, it is best to prepare yourself for possible disputes along the way. While small conflicts are a regular part of the growth process, significant business disputes may cost you more than expected. This is why it is always advisable to consult a Business partnership lawyer before signing the partnership contract.
1. Hiring a Business Partnership Lawyer
It is totally normal for business people to be unaware of the legal aspects of starting up or running a business. Working off the clock legal? What is the law regarding lunch breaks? Do I need a permit to operate my business? A lot of people wonder about such questions since they have no prior knowledge regarding this subject. In this case, it is best to seek the assistance of a lawyer instead of taking risks.
With the help of a partnership lawyer, both parties can understand the various laws, rules, and obligations concerned with their business. With such knowledge at their expense, the chances of breaking the state law, risking the business’ reputation, and facing a partnership dispute are significantly minimized.
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2. Signing an Operating Agreement
Before you dive into the business, it is essential to sign an official agreement with your business partner. Such an agreement must comprehensively discuss the terms and conditions of the partnership, so there are no points of difference regarding basic stuff in the future.
It is always best to sign an official agreement with your business partner before you start working. Especially if you are making big changes in your life for the sake of the partnership, such as moving to a different city or quitting your current job, it is advisable to sign the partnership agreement before you make any of those decisions.
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3. Openly discussing worst-case scenarios
One helpful activity that will greatly help reduce partnership disputes is to openly discuss worst-case scenarios that your business might face in the future. It might make both parties uncomfortable, but if it is done with consideration, respect, and collaboration, such a discussion will certainly prove to be very productive.
How would we cope with constant losses? What strategy will we adopt to resolve conflicts? Such questions need to be addressed before one gets into a business partnership.
4. Seeking a like-minded person
It is better to find a business partner who has a completely different set of skills and attributes than your skills. While like-mindedness is essential, similar skills, weaknesses, and strong points will create the problem of redundancy.
This means that when your business demands a different approach or perspective, you will have trouble coping with the problem. Thus, it is ideal to partner up with such a person who has complementary skills and qualities. This can be done by having an open discussion with your potential partner, evaluating their strengths and weaknesses, and then comparing them with your own.