5 Telltale Signs You and Your Business Partner Should Break Up
by Mashum Mollah Business 18 September 2020
Many successful businesses in the past have had to end because of an ugly fallout between the founding partners. Many of these fallouts or breakups could have been handled better and in a way, which would have been beneficial for both the parties involved.
Businesses, which end where a feud becomes public in nature often fail to survive as the owner’s mentality starts reflecting on the business. Following this, no one wants to do business as the reputation and credibility have already been tarnished.
A partnership split is more common than you think. You may have heard of numerous boy bands splitting up. On the other hand, you would have also heard about how Facebook’s Co-Founders, Mark Zuckerberg and Eduardo Saverin split when the startup was just gaining in prominence.
In this article, we are going to help you understand signs that now is the time to call it quits with your business partner.
List of 5 Telltale Signs you and your Business Partner should break up
1. Unequal Distribution of Responsibility-
In any company, it is important that the partners share roles and responsibilities, which are equal in nature. For example, if one partner is looking after setting up and improving the internal service processes, the other one should be looking after sales and new clients.
Sharing an equal load of responsibility makes you feel that the equation is balanced. Once the sense of doing something, which is unfair comes is, the partnership starts to wobble. Feelings like ‘I am doing more, but he is just enjoying because of all my hard work’ set in very soon.
2. Business Disagreements on Fundamental Issues-
Questioning, arguing, and finding a better way forward is integral to the success of any business. However, disagreements should not come to a level where you start fighting over all aspects of the business. Further, these squabbles should not be made public.
When business partners start fighting over every aspect of the business like small business funding, customer service, and marketing strategies, and so on, it is time to walk away from the partnership amicably. After a point, the fights do not stay about the business anymore.
3. Incompatible Working Personalities-
‘Oh I am a morning person, whereas my partner works late into the night’ might sound fashionable, however, they create big problems later on. Different personalities can make something exciting and productive, or they can be antithetical to a successful operation.
If you are your partner are too different in terms of working style, professional personalities, and approaches, then you will start seeing fault lines. Different personalities start feeling that their way is the correct way to do something and relegate the other person.
4. Questionable Honesty-
Financial propriety is the foundation of not only a business relationship but of all aspects of life. This kind of doubt is the worst, which contributes to companies coming to an end and partnerships eroding. It is important to ensure that these things do not happen.
However, not everything is under your control. Instances of mishandling of business term loans, collection of payments, distribution of incentives, and secret bank accounts have led to a downfall of many a great company.
5. Losing Interest and Care-
When you start out, you are always full of energy and life. The excitements push you to invest fourteen-hour days in the office. However, over a period, that excitement dies down and all interest gets lost.
Maybe one of the partners stops believing in the company or what it will eventually end up achieving. This is detrimental not only to the interest of the company but also to the partnership. If one of the partners loses interest, it is always better to end the partnership.
The Final Word
It is important to note that the sooner you identify the signs, the better will you be in a position to raise yourself from the mess. This will also enable you to explore new business opportunities, scale up your operations using business term loans, or even look for a new partner or investor.
Professional breakups do not have to turn sour every time. By talking and discussing the way forward, or bringing in a mediator to help can create favorable exit conditions for one of the partners. If you start spotting any of the above-mentioned five points, then it is probably a good idea to start thinking about walking your separate ways.