Going into business with a partner can provide necessary support and have many advantages. Partnerships are commonly born out of friendships, which means the business can bring friends together on a whole new level. However, for entrepreneurs in Brooklyn, New York, knowing how to avoid business disputes is an important part of keeping both the partnership and the friendship healthy.
Ultimately, businesses need money to survive. Financial stress can be incredibly divisive when dealing with partners. That stress becomes even more dangerous when there are disputes surrounding the finances because partners want to use the funds in different ways.
To minimize the risk of financial disputes harming the partnership, you should establish the rules early. Before your business even launches, have written rules in place to govern the handling of all finances.
When you and your friends were planning this new business, it may have been easy to agree about everything. The honeymoon phase is just as real in business as it is in marriage. However, things often change when there are actual operational decisions to make.
Much like financial decisions, you should plan for operational disputes before your business ever launches. Whether this means having a written agreement about who will handle what aspects or you have a voting system implemented, you should plan for disputes before they arise.
In the worst-case scenarios, business disputes require mediation or business litigation. On either of these possible paths toward resolution, you will need to work with an attorney who is familiar with business law in your state and on the federal level. This attorney can help you navigate potentially devastating disagreements between you and your partners while protecting the viability of the business you have worked so hard to launch.