You and your business partner have been running the same company together for years. Sometime later, they violated an agreement, and it crushed you. You are hurt because you didn’t think of them as just a teammate; you considered them a friend.
Unfortunately, about 70 percent of business partnerships break up due to issues like communication failures, unequal partnership commitments and broken trust. After the agreement violation, you are wondering what to do next. Below are options you can use to deal with a business partnership breach.
Try to negotiate a settlement
Depending on the situation, perhaps you and your business partner can reach a settlement, e.g., mediation. Mediation can help you avoid a drawn-out and emotionally taxing court case. Furthermore, it might even restore your business relationship (and friendship) and give you both a fresh start.
Remove them from the company
If your partner constantly made excuses to get out of helping you during closing time, or you called them out for faking an illness, it is probably best to end the partnership. You can do this by expelling them from the business or dissolving your partnership. Make sure to follow the correct protocol in partnership dissolution to avoid facing possible litigation from your former teammate.
Take your partner to court
This option not only allows you to receive compensation; it forces your partner to provide restitution for whatever they have done to warrant the end of your partnership, especially if they committed embezzlement or another crime. However, it might not be the best option if you’re a small company.
Some business partnerships do not go well, sadly. Therefore, you may need to take action to remedy the issue. Seeking legal guidance is a great way to aid you in deciding the best route to take.