Building a business with your partner is hard. How do you know you’re on the same page? To build trust, be clear about what it means to both of you before starting up. With clarity comes peace of mind and increased ability to focus on execution.
Business partners must be on the same page. This is a key component of business success and can often be difficult to achieve. However, there are some things that you can do to make sure your partnership will last. Read more in detail here: business partner.
Whether you’re part of a married couple burdened down by debt or business partners arguing over the optimal use of the corporate credit card, money disputes can create a hole between the strongest of relationships.
When it comes to business, partners who are on opposing sides of contentious topics may hinder a company’s ability to get off the ground. Is it time to break up with your business partner if you’re always fighting over money plans, or can the relationship be saved?
Read on for advice on how to bargain with your business partner about particular financial issues that may impact not just your relationship, but also the health of your company.
1.You and your partner are at odds about obtaining a loan.
If you’re committed to manage your company without taking on a lot of debt, but your partner thinks that leveraging up is the only way to expand it, you’re likely to come to a dead end.
Rather of battling every time your business is ready to make a large investment and debating about how to pay for it, get down with your partner and devise a borrowing and purchasing plan. You should each describe your company’s vision and how the two of you plan to achieve those objectives. Will taking on additional debt help the business get to where it needs to be in the long run? What impact does time play in your company’s capacity to succeed? Is your business in need of a loan right now, or could you wait a while and save money without the assistance of a lender? Are you being realistic about what it will take to keep your company afloat and growing?
Before you walk away because you can’t find a middle ground, think about making a compromise. Allow your company partner to carry out their plans and borrow money without making you liable for any personal debt. Your partner may accomplish this in one of two ways: they can create a comprehensive business plan and apply for a loan on their own, but the bank is likely to reject the application if you hold equal shares in your firm. Another alternative is to offer your partner a larger portion of the company’s ownership so they may take on most or all of the debt. Depending on your and your partner’s future objectives, you may do this for a short time or make it permanent.
2. You’d want to avoid using a shared company credit card.
Your partner wants to set up a business credit card account with you to establish credit for your firm, but there’s a major problem: They have a reputation for poor spending habits, so much so that you fear you’ll wind up in debt.
Set a modest credit card limit, just enough to pay essential company expenditures without worrying about your partner purchasing a large screen TV for the lobby.
3. You’re out of step with your spending habits.
While certain disputes may be worked with, differences in how much money each partner wants out of the company will almost always lead to the dissolution of the partnership. You’re likely to have a working relationship filled with conflicts from day one if your spouse wants to wring every penny out of the company endeavor while you’re more of an easygoing, I-can-live-off-a-grand-a-month type (or vice versa).
Whether you’re trying to figure out if you and your current spouse have comparable spending habits (or if you’re thinking about moving on to a new relationship), make sure you figure out if you’ll be a good match as soon as possible. Jordan Dolgin, a Toronto-based lawyer specializing in company law, advises asking prospective partners questions to determine whether or not you’re financially fit, according to Inc. Magazine. The following are some of the questions that have been raised: How much money do you need to be happy? When does an additional week of vacation become more essential than the next $10,000 in pay?
You’re more likely to find a spouse who shares your views and values if you define your lifestyle choices and preferences early on.
4. Your spouse is behaving in a suspicious manner.
It’s time to run, not walk away from a business relationship when a business partner loses sight of their loyalty to you by going on a personal spending spree using the corporate credit card or stealing from an account. You may attempt to settle your issues peacefully by hiring a mediator to assist you and your spouse in reaching an agreement on how to continue, or you can look for conflict mediation options online. At this stage, you may also explore legal alternatives such as dissolving the partnership with the assistance of a lawyer, as well as suing for theft or violation of fiduciary responsibility.
Whatever the case may be, money issues in general place a strain on business relationships, and it’s better to address them as soon as possible. You can put a stop to a developing problem, turn over a new leaf, and get back to what matters most—running your company as efficiently as possible moving forward—by dealing with the problems now rather than later.
Frequently Asked Questions
What does it mean to be someones business partner?
A: To be someones business partner means to work together with them in order to create or run a company.
Are business partners equal?
What do I call my business partner?
A: In this context, partner means a person or entity with whom you have a mutually beneficial relationship. The word business partner is just one example of the many words that could describe your intended meaning here.
- partnership agreement
- general partnership definition