How to settle partnership conflict in business

Barida Level 1

July 19, 2018, 5:26 pm

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How to settle partnership conflict in business

Being in partnership in business is one of the best mode of doing business especially when the people involved are ready to move the company forward. However, there is always a time for issues as it is inevitable most times.

What is the best way to settle issues in partnership or is backing off the best?

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wallet

wallet

Always is a middle place, agreements, and understanding especially communication is the best way to settle issues in a partnership, but this depends on many factors as partners, the money invested and what exactly is the issue.

7 years ago

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Barida

Barida

Having an agreement in place is one of the ways that partners can get to settle any issue that is occurring between them. One thing that I have come to notice is that agreements are necessary as this is something that you can fall back to when there is crisis so as to lay claim to what is rightfully yours.

7 years ago

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fishbate

fishbate

I agree, the agreement should be clear and documented so that both parties have a common understanding on what to do.

7 years ago

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Martinsx1

Martinsx1

Exactly! I haven't seen any issues in this life that doesn't have a way to its resolution as long as the parties involved are open and willing enough to give peace a chance to reign. There is always a compromise in all business and human relationships, so when it gets to a boiling point in any business relationship or partnership, finding a way to compromise is the only way to getting a peaceful resolution to the problem.

6 years ago

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mark8625

mark8625

Thats right. You need to talk about the issue so that you will settle the misunderstanding regarding to your business. All problem can be fixed in proper talk and constant communication. Always think that you should know how to listen and be listened also. Dont talk too much if he is talking. Give him time to explain and he will give that also when your turn. Try to fix it as soon as possible so that your business will not suffer in the end.

6 years ago

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jeffreyjose48

jeffreyjose48

Conflicts in business sometimes is inevitable. But I believe for business to grow, good partnership must be intact. Business partners should abide with their agreement. They should do their best to keep their partnership good by communicating well.

6 years ago

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Martinsx1

Martinsx1

Any business relationship should have rules and agreements that guides it, otherwise it's going to spin into a chaotic relationship where one with the upper hand in the partnership will exploit and intimidate the weaker partner. Backing when you have your interest to protect in the business is a very wrong move because you will end up losing your investment.

7 years ago

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fishbate

fishbate

Yup backing out of business is the last thing to do. Specially when you invested a lot in the business. If the conflict is that bad, i suggest you proceed to legal terms.

7 years ago

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Martinsx1

Martinsx1

If there isn't any rules and regulations guiding how the business partnership should operate, one part in the business will definitely be cheated in the business in times of crises. Even going to the court would make matters easier to be resolved if there were ground rules on which the partnership was built. My advice to anyone is never go into any business blind.

7 years ago

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Kakashi2020

Kakashi2020

I would have to disagree with you on that partnership is the best mode in doing business. I've had several businesses in the past in which I had partners and always there would be disagreements more so when the money is coming in, it's best to start a single proprietorship, this way you'll answer only to yourself. If the business is not doing good then it's your fault.

7 years ago

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Barida

Barida

I didn't say outrightly that it is the best, but the point was it is one of the best way of doing business as you will always have increased capital to start up a business once you go into partnership with another person. One thing that is necessary is the need to understand that partners have issues and there is need to find a way out of it when such matter arises.

6 years ago

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Martinsx1

Martinsx1

I understand exactly where you are coming from and what you actually trying to say. Some people are not good with dealing with partners and business together. There are such people who are very good at being a lone wolf in their business. They work, invest alone, reap the benefits alone and suffer the loss alone. There is actually nothing wrong with that as long as you are capable of managing your own business effectively and efficiently.

6 years ago

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fishbate

fishbate

I think a business should have a preventive protocol in terms of partnership at the first place. This is a guide or process that should be done in case of conflicts. I think going through this process is the easier and professional way to administer conflicts.

7 years ago

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Martinsx1

Martinsx1

Exactly! In every human relationship and association, there are bound to be conflicts no matter how much it's prevented. But when you make plans for the peaceful resolution of the conflict is the only way to avoid fracas when the conflict gets to the boiling point. Without rules and regulations, we are all savages.

6 years ago

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Kakashi2020

Kakashi2020

Two minds always think differently. It's always a headache having a business partner and it ends up always bad. At the start it's usually good but when the business starts to get good income, this is when greed takes over. For me it's best to have your own business without any partners.

7 years ago

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Martinsx1

Martinsx1

I think everything is all about understanding. Yes, it's true that there is no way two different people can reason and think exactly the same way but that doesn't mean that you both can't find an understanding in business decisions. It's more of being open to understanding what your business partner is trying to pitch into the business. It is never about you alone but learning how to work with someone's idea and seeing the good in it.

6 years ago

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Kakashi2020

Kakashi2020

If you and your partner has some trust issues it's better to buy him out if the business is profitable or offer him your share so that he can be the sole proprietor.

6 years ago

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Barida

Barida

Deciding to go our separate ways can also work when we are sure that we've got big plans for the future of our business. I have seen some business split that never gone down well with people that decided to go their separate ways.

6 years ago

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Martinsx1

Martinsx1

Let me throw this question at you. If you are in a business partnership and there seems to be a misunderstanding between you and your business partner, then one day your partner calls you to offer a proposition to pay you off and own the business, would you agree to being paid off knowing fully well that the business have the tendency and possibility of expanding way beyond your assumptions?

6 years ago

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Kakashi2020

Kakashi2020

It really depends because if the business is successful then why not buy your partner out instead of him buying you out. But if he is willing to pay a premium that you could use in starting your own business then why not.

6 years ago

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Jhie

Jhie

Conflict's between partner's will happen. In some case's, the conflict become's a dispute that threatens the viability of partnership.

At the outset, partner's should have a clear understanding of their partnership, obligation's how the partnership assets and liabilities will be managed, and how disputes will be resolved.

Conflict's are a given, but you can't lose sight of the larger goal: to resolve disagreement's as effectively and amicably as possible, so that you and your partner can continue running a healthy and growing business.

6 years ago

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Barida

Barida

Ensuring that partners have the laid down rules that is going to assist when there is an issue of dispute. I don't really understand how partners will have some conflicts and allow that to penetrate into them at the end of the day.

6 years ago

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treecko142

treecko142

Learn to compromise and know when the other partner's idea for the company is better. Both of you just want what's best for the company but sometimes you have conflicting ideas and rather than butt heads, work out on which idea is better and work together on improving on improving that idea and put your ego aside.

6 years ago

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Barida

Barida

You made a good point with this as I have come to realize that there are ways that we can get to become better on a daily basis. Going into a partnership with anyone is something that we should try to understand. They will have their ideas and we should try to understand that it is better send respect that too.

6 years ago

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Alymae

Alymae

It is always best to listen. I think the best way to solve any conflict in business is to learn to listen. When you listen properly you will know where the problem lies. On your side or in his side. After listening, you can then decide what steps you are going to take. Have ample time for conversation.

6 years ago

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Barida

Barida

Lacking of communication is one thing that has killed a lot of partnership that we have out there. When one person is not willing to listen to hear what the issue is before taking actions can ruin a lot of things which is very bad.

6 years ago

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superlicca

superlicca

Business partner conflicts will always emerge. This is a consequence of being in a partnership business. Having a documented agreement is a must to avoid any miscommunication between the two parties. Every issue can be solved with a proper conversation. Communication is the best way to a great partnership. Things don't have to complicated due to a simple misunderstanding. As long as both sides are willing to compromise, your partnership in business will lead to a favorable outcome.

6 years ago

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Barida

Barida

If I have not learnt anything from my mentor, I can not forgeethe day that he taught me about the need to always document agreements. This is one sure way that you can get to have something to fall hack upon when the other person is looking to take advantage of a situation.

6 years ago

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stbrians

stbrians

Before entering into a partnership, it is better to draw up rules and sign up a partnership deed. These rules are to be followed to the latter. If any is broken then the solutions given in the deed and rules should be engaged.

6 years ago

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Barida

Barida

When I was in secondary school, we were taught about ways that a partnership can be dissolved and I think having a sharing pattern is one of them. We are not saying that there is going to be expected conflicts, but having a back up plan on that situation is something which is necessary as well.

6 years ago

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rlpzbeermoney

rlpzbeermoney

I guess the logical solution is to settle it in a democratic way. Open it up with your employees and have them vote on the matter. Either of you or your partner can be contented with the outcome this way. Though the simpler way is to just compromise. You wouldn't be partners in the first place if you didn't expect to do so in the first place. That's what partnership is.

6 years ago

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Barida

Barida

I don't agree with compromise on any issue as long as it is not going to be on a fair ground. There is need for us to see the world of business as one where everyone should be professional and this is one reason we shouldn't be allowing this kind of situation to end in a compromise.

6 years ago

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anchoreztin

anchoreztin

This is a very good question. As much as possible I really avoid confrontation and argurments. I feel uneasy whenever I face conflict with a partner. Because of that I always do my best to prevent such scenarios. But arguements is sometimes inevitable.
I usually stay calm and think things over and over. I try to talk to my partner in the calmest way ever. I try to be more of a listener than to be the speaker. I let him vent out his negative feelings. As I am hearing this I try to put my self into his place. If ever a partner is also a non confrontational type like me, I usually initiate the conversation especially if we should maintain a professional relationship with one another.

6 years ago

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Barida

Barida

This is great way that you can become successful as a partner in any business. Understanding the power of listening to what the other person is saying will go a long way in proving hoe mature that you are when it comes to ways that you want to handle such conflict.

6 years ago

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coolavender

coolavender

Conflicts are inevitable in partnerships and even in corporate forms of business. The partnership agreement and rules should cover potential issues and how they should be decided. Each partner should have a clearly defined role and responsibility in the business to lessen conflicts. When one partner tries to encroach on the other partner's territory, that could indicate lack of trust in the other partner and may spark resentment. Business partnerships rarely last because each partner has individual interests that may infringe on the partnership's interest. How to settle partnership conflicts? It depends on the cause or nature of the conflict. In many cases, the only solution might be the dissolution of the partnership.

6 years ago

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Barida

Barida

Yeah, I agree with you that in may cases of partnership conflicts, there is a tendency of separation. I have had this idea of working hand in hand with someone, but at a particular time, I realized that it is not working the way that I expected it to be going and I had to call it quits because of that situation.

6 years ago

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jaymish

jaymish

In my opinion the best way to do this is not to be in a partnership in the first place. A partnership is the most acrimonious form of business to enter. I prefer a sole trader ship or a company. Make sure before entering any partnership that you have a partnership agreement. This spells out the roles of each partner and gives a solution for what you should to in case of a conflict. It provides for a scenario of where you can dissolve the partnership. This in my opinion is the best way to handle a partnership dispute.

6 years ago

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Barida

Barida

I don't think that partnership is the worst form of business as long as both parties are doing the things that will bring greater success to the business. This is one thing that I believe that matters so much when we are looking at partnership and everything that concerns it as well.

6 years ago

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romyter013

romyter013

Partnership are just fine if the members are unite and discuss things to make all decision right for the business. It only happens to have some problem in business if one doesn't want to cooperate, wants to be the bossy one in the group or say the stubborn one. Better to discuss first everything, try several meetings, get to know who really the people who you want to be part of your business. Because once its done and they signed already on the contract and you noticed that they don't deserved the position, all you can do is wait till the date contract expired.

6 years ago

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Barida

Barida

This so true. The issue with some partners is that it always get to that point where they start feeling bossy and acting as if without them, the business won't grow anymore. That is the point where such partnership is heading to its destruction as incidents of conflicts may occur.

6 years ago

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csk81

csk81

You could have an open conversation with him about your concerns. Like any relationship, honesty is key. Find out how he perceives his performance and make sure that you're not undervaluing him unfairly. Once you've done that and if you still feel that a 50/50 partnership is not fair to you (by the way, someone should always have at least 51%) you may need to either purchase some of his shares (assuming you're a corporation) or determine another equitable transfer of shares.

I'd need to know more about your legal structure and the responsibilities you both have. Also, how did you guys end up partnering 50/50? You must have seen initial value in this even split, right?

6 years ago

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Barida

Barida

Respect for the opinions of those that are into partnership matters as well. I believe that the company should understand that there is nothing that is going to happen if we don't allow distrust to enter the corporation that we are into.

6 years ago

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Jeane

Jeane

Resolving conflict may not be easy because people hate to be honest with each other. And even when you manage to end the conflict there is a likelihood that you'll have to deal with something like that in future.

This is why I believe having a neutral third party hear out both parties grievances would be a good idea. This guarantees 100% honesty. When all is laid bare on the table, you can conclusively deal with the issues that might force you to dissolve that partnership.

6 years ago

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Barida

Barida

Well, bringing a third party to assist in making the conflicts sorted out can also work when we are looking at getting a fair ground. However, both parties should also try to understand that this type of involving the third party may not end well if they are partial in nature.

6 years ago

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emiaj55

emiaj55

Business matters and conflicts are best talked about by persons involved alone. That is why hierarchy should be implemented within the business structure. Conflict between partners should be talk over by partners alone.

6 years ago

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Corzhens

Corzhens

This reminds me of my brother-in-law who put up a partnership business with a former colleague. The business prospered that they were able to buy many vehicles for the company service and also for their personal use. But after some years there came a heated disagreement that led to the dissolution of the company. My brother-in-law was very disappointed but he said that it is better to divide the assets instead of proceeding with the business in disagreement with the partner.

6 years ago

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M1ndPrototype

M1ndPrototype

Hey. Conflicts during a partnership are a fairly common problem, and over time, I understand that I should never look for a partner. In many ways, this makes your life and business easier, but if you, like me, do not know how to find compromises, then you should not look for partners. Think about it well. I recently thought about creating an anguilla offshore company and I have a ready-made plan for working and creating a company from scratch and instead of a partner, I decided to use the services of professionals from sfm. They have more experience and will not be able to completely lead my decisions, but at the same time I will have my own business consultant.

4 years ago

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lindsaymonaco85

lindsaymonaco85

It can be a very healing process for you to try to put yourself in the other party’s shoes and truly try to understand their position. Remember that you are in business with this person for a reason. You likely have a long relationship that you would prefer to maintain, if possible. Give the person the benefit of the doubt and do not rush to judgment. Try to understand your partner’s position and reflect this to them so they know you are listening and that you care, which may be just what you need to resolve the problem.

3 years ago

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