An interesting topic that came up as part of my podcast, “A lawyer and financial advisor walk into a bar” with Alex Martin, was how to deal with a difficult business partner. Whilst the topic might not seem relevant to all readers, you may have a family member or friend who might find this information valuable.
Disputes in any type of partnership are inevitable – no two people will always agree. It might be minor disagreements here and there that are easily resolved, but what do you do if resentment has been building over time and the relationship with your business partner has become difficult?
One of the key documents for a successful business partnership is a shareholder agreement. A simple document that gives clarity around roles and responsibilities and provides a pathway forward if something goes wrong, or if one person’s circumstances change.
Money, role clarity and conflicts of interest are some of the reasons disputes arise, but having a shareholder agreement in place provides each party with an outline of the agreed rules and the peace of mind that they have a process if and when there is an issue.
After listening to the episode again myself, it also became very apparent that having a network of advisors is essential for businesses of any size. A legal advisor for agreements and contracts, an accountant for tax strategy advice and a financial advisor to help you plan for growth, expansion and opportunity.
Reach out if you or anyone you know needs advice in this area.