When you’re looking to start a company with another person, you need to have a significant amount of trust in the individual. The partner that you find should complement your strengths so that you can work well together as a team. Although you may have found the right fit, there are a few complications that can occur over the course of your partnership. Here’s what to look for and how to plan around them.
Although your partner may have been invested emotionally in your company or business, they may lose interest over time and no longer share the same passion. They may want to leave the company and pursue other opportunities that are available. You’ll need to have an exit strategy that is built into the partnership that is fair to all partners to ensure that the company can continue to operate.
If one of your partners files for divorce, it can mean that their ex will end up with a share of the company, which will mean that you’ll need to manage the fallout. Carrington Coleman advises protecting yourself and your company by hiring a legal professional to ensure that it doesn’t affect the future of the business.
According to The Recovery Village, more than 23 million people over the age of 12 are faced with an addiction to both alcohol and drugs. In some cases, partners may form a dependence on drugs or alcohol, which can affect their performance at work as well as endanger the company’s assets and funds. Consider including a clause in the partnership agreement that allows you or the other partners to freeze out another partner that is struggling with addiction pending their completing in a drug rehab treatment program. Establishing a plan in advance can avoid legal issues and will protect the future of the company.
Your company may be at risk if one of your partners is injured or becomes disabled and is no longer able to carry out their duties in their role. They may no longer be employable and need to be bought out. Plan for the contingencies to ensure that there’s a smooth and efficient process if an accident occurs.
You should also plan for a partner that passes away unexpectedly. You’ll need to know if they have a will that passes ownership of their stake to a capable heir or if the courts are going to decide who gets their share without your input. Winnie Anderson advises planning in advance by putting details of the circumstance in the contract that you sign to ensure that the company’s future isn’t threatened if their share gets into the wrong hands.
Although you can plan who you want to partner with in different areas of your life, you can’t always prepare for accidents or certain incidents to occur. By understanding these 5 potential difficulties, you’ll be able to create a backup plan to ensure that you get through the challenging time with or without your partner.