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The right way to part ways with a business partner if you need to

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    The right way to part ways with a business partner if you need to

    Partnership breakups are a common thing when it comes to successful startups.  One of the partners may think that the business needs to be going in one direction while the other thinks it needs to go in another.  This normally happens within the first few years of the startup being successful because both parties want to expand and make the business better, but you might butt heads in the process.  Think about it, the chances of you breaking up with your partner hover between 20% and 30% each year.  That's higher than the divorce rate for the USA lol The right way to part ways with a business partner if you need to  If you're running a successful company from the beginning, it will be tougher on you if you start to see hard times, and this will start putting a wedge between you and your business partner.  You will need to know how to deal with this situation before it happens, and that's what I'll go over in this discussion The right way to part ways with a business partner if you need to


    Prepare for the unexpected

    You'll need to be professional about everything and not get over heated when talking, texting, or emailing the business partner you're wanting to break up with.

    In the present you may have a great relationship with your business partner, but that won't always last.  You will need to keep friendship and business relationships separate, and that's no easy task to do.

    Partner splits aren't a new thing at all, think about Eduardo Saverin and Mark Zuckerberg, the co-founders of the mighty Facebook.  They split not long after the company started to get investors, and it was a big PR nightmare because Eduardo wasn't labeled as a co-founder.  Of course Eduardo got a really nice golden parachute when they split, so he shouldn't complain too much since he's set for life and so are his children and grand children The right way to part ways with a business partner if you need to  But it does suck when you do have to split up due to differences in opinion or lack of action.

    People change all the time, just like businesses, and you need to be prepared for it.  You can never get too close with your business partner because it could end up resulting in a split and now you have a ton of mutual friends that you have to awkwardly hang out with together.  To avoid this, you will need to have something written up and signed, like a partnership agreement, that states what will happen in case of partnership split.  This will ease the tension when you do end up splitting because it's already been written in a document that you both signed.

    A random occurrence of a problem will rarely end in a split up because it could have just been a basic mistake that snowballed and neither of you caught it in time, but it didn't kill your business.  When you are having these little problems happen over time, multiple times, then there should be a red flag going up. 

    Some of the most common signs that a break up is coming, are...


    1. Someone doesn't carry their own weight
    When one person is doing much more than the other, it leads to resentment towards the person who isn't doing as much.  Of course this could be completely fabricated within the one persons mind who thinks they are doing more, but usually it's true.  I've actually ran into this problem before and I'm really glad I had a partnership agreement which was also a contract that would allow us to split up if the other wasn't performing their tasks.

    When one person is doing most of the work and the other is not, it always feels like one person is working so the other can enjoy a vacation.  It's not a great feeling watching your partner buy new shoes, clothes, games, etc. when you're busting your butt to make as much money as possible for the company.

    You will need to keep a balance when it comes to the tasks that need to be done.  You will have to estimate how long something takes and divide the time evenly.  You cannot divide the amount of tasks evenly because one person could finish in a day while the other might finish in 2 weeks.  It's just not a fair compromise unless the tasks that take longer can only be done by the one person because the other doesn't have the skill set to complete them.  I've had this happen when I had a partner who was mainly the programmer and designer.  I would do everything that didn't revolve around design and programming since he could do all of that, which split out time evenly since his couple of tasks took longer than a single one of my 40 tasks.


    2. Your partner(s) always disagree on business decisions
    Now if you go into a business partnership thinking that you will never disagree, then you're going to split ways sooner rather than later.  Disagreements are going to happen because you're both owners and you have a slightly different vision that you want to play out. 

    If your partner is constantly disagreeing with you and not letting you get any sort of handle on the business that you co-founded, it's time for a break up.  Your partner will either let up on the reigns or he will be working by himself on his own project because he's too much of a control freak to be in a partnership with you.


    3. Different work habits create problems sometimes.
    When you're talking with a friend and both have the same idea, then start up a company, you're likely going to have much different work habits.  Sometimes this is a big problem because one person could be more lazy than the other and this starts to devolve into one person feeling like they're doing more work than the other while in reality the "lazy" person may just be working smarter or they're spreading their work across a longer time span that the "hard worker".  This is where work styles comes into play when a split might be on the horizon.

    Some people will want consistency while others just go with the flow and do what they think is right at the time.  Neither of these work processes are wrong, but putting them together is never a good thing when each person has a different view on how to do the work.



    Doing a Clean Split

    When the tensions are high, a split is inevitable, but this doesn't mean that you can't have a clean split.  Business arrangements between you and your partner will usually impact how much money you're making and your security as well, but you need to separate your personal feelings from how your business is ran and even split up if it comes to it.  If you do end up on the verge of splitting up, but it's inevitable, use these quick tips to help keep it professional at all times:

    Only talk when you're calm and relaxed
    You will feel frustrated, betrayed, hurt, etc.  and you cannot talk with your business partner when you feel these ways.  You will need to give it some time and accept that the split is going to happen regardless of how you feel.  You will need to be calm and relaxed when doing the talking so that you don't blow up on your "partner".  Being calm and relaxed will also help you negotiate the split because you're not seeing the partner as the enemy.

    Figure out your priorities

    1. What parts of the business are most important to you. 
    2. What are the financial consequences of buying out your partner. 
    3. Are you the one who should be leaving or are you the one who should be buying out your partner.
    4. Can you operate this business alone and still be successful.

    There are many things you need to think of after the split, so you might as well write them down before that day comes so you can cope with them if it ever does happen.

    Enlist some professional help
    Now I'm not referring to a shrink, I'm talking about a financial planner or attorney to come in and help you out with the split up.  Since they are a 3rd party, they won't have any affiliation with the company other than you contacting them for help to run the whole procedure.  Of course the attorney or financial planner will be biased towards you, but that's a good thing becuase what they hell would you be paying him for if he just handed everything over to your partner lol.



    A partner split is a tough thing to handle because you may have become friends with the partner over time and now you need to split ways.  I try not to get too attached to my business partners just in case something like this ever does happen.  I talk with them, joke around, but I rarely hang out with them outside of a digital space like Skype, discord, or even a casual meetup when we're in the same area.  I'll always keep it professional and friendly, but I won't schedule time with them outside of work hours just so I don't have a rough time splitting if it ever does happen.

    Some of you may be different, but that means you haven't gone through a tough business split up because one person isn't doing the work or someone just keeps butting heads with you lol.



    In Conclusion:
    A partner split is a rough thing to do even if you follow everything I wrote above.  If you ended up becoming friends with your partner, your friendship will suffer a serious blow.  You may lose that friend and a few other friends that they brought in because of course some people are going to be biased and childish, which means they will side with the other guy/girl after the break without hearing what happened.  All you can do is hope for a mutual split where both parties agree to everything and nothing happens afterward.  I can tell you that you will need to never partner up with that person again unless you have an iron clad business agreement on what needs to be done and by who The right way to part ways with a business partner if you need to



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    Razzy

    #Partnership Marketing & Monetization
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    augusta

    augusta

    Moving away from a previous Business partner shouldn't be that hard or bring enmity.Everyone should play cool and be at peace.Friends can't stick forever let alone business partners.If the partnership is no longer working-out then a split should be initiated peacefully.

    The sharing ratio of both profit and loss should be upheld and assets and liabilities shared according to the partnership deeds and that ends it.Humans should always be civil in the face of separation.Not fighting and messy split all the time.
    7 years ago

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    DarthHazard

    DarthHazard

    Firstly, you need to be prepared for all the situations that could happen. If they have invested in your business then you should be ready for them to say no or for them to start requesting that money back. You need to be careful about the decisions that you make from that step onwards because it could end up with the other business partner taking you to court. If it's a proper business then I would suggest you get some legal advice before you do anything just to protect yourself and the business
    7 years ago

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    Pixie06

    Pixie06

    There are many disadvantages of being in a partnership and that's the reason why I operate my business on my own. In case of partnerships I think it is of utmost importance to keep personal and business relationship separate. I have never been in a partnership but however I have worked on group projects and know how it feels like when everyone in the group is not putting their efforts and then want to take credit for the work. That's a very good article. You have provided some great advice how to end a partnership on a good term.
    7 years ago

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    TheArticulate

    TheArticulate

    The idea for my offline business, which deals in video production and photography, was initially going to be a partnership between myself and a friend who showed an interest in getting into photography. I met with a business lawyer to ask questions about setting my business up and he advised strongly against going into a partnership. I followed his advice, and I'm so glad that I did. My friend's passion did not turn out to be as strong as I had thought, and he ended up bailing on me. I can't imagine what it would have been like if he had owned 50% of my business and the equipment as well.

    It's much better to operate your business on your own (so long as it's small enough for you to effectively do this) and then pay people as independent contractors as needed when you hire help.
    7 years ago

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    Authord

    Authord

    Well, bussiness partnership is clearly not for me, this has been my stand since I experienced a glowing businesses in my hood, wrecked down by a fellow business partner.
    But if you must have a business partner allows, let him sign an agreement that gives you an upper edge over him/her, we humans are cruel and cunny. So always be careful with your business partners and when selecting one.
    7 years ago

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    JoeMilford

    JoeMilford

    When it comes to my freelancing work, I choose not to have any business partners, and I going this alone. My "day job" is rife with politics and inter-office tension, so I wanted something all to myself that I was totally in control of, for better or worse. In any case, having a good human resources background and knowing your legal rights and the legal pitfalls of business is a must when dealing with partners. I have seen so many of my friends get burned in business deals because they did not educate themselves on the "fine print" of things. Working solo has its advantages, and disadvantages, of course, but I prefer it to the alternatives of dealing with bad blood between myself and partners.
    7 years ago

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    kgord

    kgord

    Any split is difficult whether it is in business, in life or in love. You have to think through why the split is happening, and how your life is going to be affected positively going forward. It is rarely easy when you have property and goods to settle, and sometimes your partner is not on board with the decision to go your separate ways, but they may be later on when they look at all the factors that went into the decision are explained.
    7 years ago

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    overcast

    overcast

    I have found out that you need to find out partner who can tune into your frequency. It may help you in many ways to set things up. Most of the time you have to allot the work to each partner and work on things. That is how you should set up the business. If that doesn't work out then yes split is required. But not all people can do that sort of split all the time. I think parting ways should be the option if there are no points working out for you.
    7 years ago

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    Baburra

    Baburra

    Great points. As with everything, especially with negative actions such as splitting up, I like to approach the situation as objectively as I can. I think that is the best guideline for dealing with such an event and all will fall into place using that rule. Of course, this process will more likely be complex than simple, so as much as possible it probably will be the best choice for both parties to try and find a common vision of what it is they both want out of the split, and work towards making decisions from there.
    7 years ago

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    galegatling

    galegatling

    If your business partner is your friend or relative or even a family member, things will sometimes get out of hand specially if you both have spent so much time, money and effort on growing your business. One of the best ways, as you mentioned, to split with your partner is to talk about it when you both are calm and relaxed. It may be hard at first but it has got to be done anyway. Always try to have a win-win situation from both sides. Or if you really need to get out of that partnership, you can let him or her have a little bit more but not to the point where you would think that it's unfair to your part.
    7 years ago

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    Corzhens

    Corzhens

    Let me share a sad experience with a business partner. My husband and his high school chum put up a retail business of computer supplies. My husband manages and his partner helps in getting connections with big suppliers. After a year, the business has grown with 4 marketing people led by the niece of the partner. Unknown to us, the partner had registered his own company and his niece was pirating our major clients. It was a nasty end to a good business. Lesson learned - don't put too much trust in your business partner.
    7 years ago

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    Tronia

    Tronia

    Luckily, I have never been in this position before because I try to avoid partnering up. I am afraid of all the bad possible outcomes since some errors in communication are quite common.

    I have a friend that partnered up with a buddy of his and within one year the whole business fell apart because they couldn't find a common language.

    But yeah, a great article. I think that it is important to have a good contract before you even start business with another person to ensure that you know who gets what in the event of a split.
    7 years ago

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    Soulwatcher

    Soulwatcher

    I have never been in that situation before, but I have high value morals and standards. (I am not saying other people don't I am just speaking for myself) So if I was going to split with a business partner. I would make sure everything was in agreement with both parties. And I would even take a loss if it meant that we got to keep our friendship. Because you can not put a price on a good friendship. In my personal opinion no amount of money is worth ruining a friendship.
    7 years ago

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    Kakashi2020

    Kakashi2020

    I've experienced a lot of things when it comes to businesses, partners and co incorporators and one thing I've learned the hard way is, it's best not to have partners specoally long time friends, relatives and people who's generally richer than you. Because time will eventually come that tensions will rise because of Greed and you have to part ways and sometimes even worst, you can even get booted out from your own business. There's a lot of ways you know. And in my experience there's no sublime way to part ways, there would always be bad blood more so if you get the short end of the stick.
    6 years ago

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    Corzhens

    Corzhens

    We had the experience of having my husband’s best friend for a business partner. It was so difficult to part ways because of an issue. It’s not an argument or disagreement but our business partner was doing something anomalous. And we discovered it only upon the suspicion of one of our employees. We felt devastated after that and on the next time that someone invited us to be a business partner, I refused.
    6 years ago

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    liliansh

    liliansh

    So, I never had a house with a pool. But recently we were looking for a place, and we found one with a pool. It is perfect for warm weather to have a pool in the yard. For me, it matters to be perfect when I buy a house. He told me from the beginning that he had recently installed these braces, and it seemed to him that he was squeaking in those places. He told me that he still hadn't taken an interest in this. This was strange to me. But when I plan to buy a house, or something more critical, I turn to the specialists in construction authorization from vasaadvokat.se. And they also told me that this is normal at the pool, that he has encountered such problems before, but it is something ok, and it will disappear. I've been using the pool for about 3-4 weeks now, and everything is terrific, so you don't have to worry.
    3 years ago

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    Cinthya98

    Cinthya98

    I have to admit that you have pointed out some really great things and scenarios. I had a similar situation in my life when my business partner wanted to part ways, and I was surprised by that. Honestly, I even got depressed because of that. However, since I calmed down, I managed to get my point and get all that I wanted. And, now I'm the partner of a company that is one of the biggest suppliers of air jordans 1 mid in the entire country. Honestly, that makes me proud, especially when I understand that my former partner failed without me.
    2 years ago

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