Running a business by yourself can take a lot of work. Not only are you responsible for managing employees and clients but you’re also liable for any issues that come your way. You don’t have to run a business alone, however.
Many businesses flourish because owners can share the responsibilities and liability put into managing their businesses with a partner or two – and, most of the time, that’s great. However, some business partnerships sour over time.
The following are a few reasons business owners may need to dissolve their business partnership:
1. Poor communication
Communication is important for any business partnership. Each partner should have some idea as to what the other expects from them and what they’re doing for the business. Many partners plan times in the day and the week to come together and discuss issues, strategies and changes that have come their way.
When partners are hiding information or no longer participating in discussions, that can be destructive to both their personal and professional relationships and signal that a change is needed.
2. No experience, knowledge or skill
Many business owners seek out partners who can provide skills and knowledge that the owner otherwise doesn’t have. An experienced partner may be able to provide unique advantages and ideas that other businesses don’t have.
Owners who find that their partners can’t bring anything to the table may be carrying dead weight, figuratively speaking. Owners who are looking to make their businesses stand out may need to consider finding an experienced partner.
How to dissolve a business partnership
A partnership agreement may include instructions that make it clear how and when a partnership is dissolved. Owners who have a strong understanding of their legal rights may have more options when it’s time to dissolve business partnerships.
