Starting a business in New York might not be something you want to do on your own. Fortunately, you can start a company with another person. Business partnerships can be beneficial if you are with the right person. Unfortunately, there are several reasons why business partnerships end.
Most people act in good faith when taking on a business partner. Unfortunately, it’s not unheard of for one business partner to mishandle money from a business they co-own. It could be time to start a business lawsuit if you suspect your partner is mishandling or stealing company funds.
Partnering with close friends or family members
On paper, partnering with someone you know, like a friend or family member, seems like a great idea. Sometimes, even the strongest relationships can sour when a company and its money enter the picture. Another issue is having your judgment clouded by hiring people based on relationships than whether or not they’re a good fit to lead a business.
A failing company
It’s easy for people to get along well when they work for or own a successful business. But a failing business can quickly erode the optimism of the people who started it. When things go bad for a company, it typically earns less money or makes no income at all. It’s also possible that you and your business partner face a strained partnership because you both put personal income into a shared business. As you can imagine, such stressful times can lead to a falling out between business partners.
Choosing a business partner isn’t a decision to rush or take lightly. If not, your dream of starting a new business could quickly turn into a total nightmare.