Having a business partner is an important part of operating a company for many California entrepreneurs. You likely started your business venture with your chosen partner because you believed that you could achieve professional success together. At first, everything may have seemed like smooth sailing, and you easily quelled any potential disputes by finding relatively easy resolutions.
Unfortunately, as time has gone on, you have found your partnership a little more strained. Those disputes that once seemed so easy to resolve may have become more serious, and you may feel like taking certain steps may only lead to more disagreements.
What are you disagreeing over?
Business partners, like almost any relationship, can face strain over time for a number of reasons. You may have found yourself at odds with your partner more often than not these days, and now, you feel that the time has come to meet matters head-on. Understandably, you may have wanted to avoid confrontation if possible, but if you face any of the following issues, you may need a direct approach:
- Intellectual property disagreements: Did you think of a great, innovative idea that could allow your company to stand out from competitors? Because you put so much hard work into the idea, you may want to maintain sole ownership of the IP, but your partner may disagree, wanting the company to have ownership.
- Monetary conflict: Is your partner misappropriating business funds or making significant purchases without consulting you? Financial issues can prove detrimental to a company, so addressing the matter head-on is wise.
- Operational disputes: Do you feel like your partner no longer pulls his or her weight or that you now have different visions for the future of your company? If responsibilities are falling to the wayside, your company could be in trouble.
In many cases, partnership disputes can reach resolutions through direct and open communication about issues. However, if your partner violates the terms of any business contracts you have or continues to disregard your input as an equal business partner, you may need to take additional action to protect your company. Discussing the issues with a knowledgeable California business law attorney could allow you to gain insight into your resolution options and help you determine whether moving forward with litigation could prove necessary.