Going into business with one or more other partners can be a highly promising prospect. It is an opportunity to pool your talents and resources toward a common goal, but it also opens up the possibility of clashing leadership styles.
Disputes are a near-inevitability when attempting to lead a business together as equals. For that reason, it is important to have a partnership agreement in place that provides legally-binding terms for preventing or resolving disputes efficiently.
Clarifying partner responsibilities
Putting a clear description of each partner’s role into writing can proactively prevent disputes before they can occur. If it ever does seem as if one partner is overstepping their bounds, refer to your partnership agreement for clarification on the extent of each individual’s role. Doing so can often put a rest to potentially contentious matters without the need to escalate the situation.
Outlining a mediation process
There may be some disputes that your contract cannot preemptively prevent. That is why it is essential to outline a mutually-agreeable process for resolving or mediating a dispute. You might refer to a superficially chosen mediator or take advantage of Minnesota mediation services offered by the state government. Additionally, your partnership agreement can outline a process that individuals can follow to amicably exit the business in the event that a dispute truly cannot resolve through peaceable means.
A strong partnership agreement is one that protects the rights of everyone involved. Disputes often arise when one or more individuals feel that the actions of another are infringing upon their rights, which exemplifies the need to have an agreement that can efficiently put such matters to rest.