What seems like a promising business idea can go south for any number of reasons. Whether due to tensions with a co-owner or a decline in profitability, a time may come when leaving your partnership is the best option for your future.
Business disputes and partnership dissolutions are sensitive matters in the world of business law. If you wish to avoid an unfavorable outcome, it is best to be aware of common mistakes that can burn you when leaving your partnership.
1. Defying the terms of your written agreement
In all likelihood, there is a partnership agreement in place at your business that exists to protect the rights and assets of all co-owners. If your agreement outlines the process an individual must follow when leaving a business, be sure to abide by those terms.
2. Breaking trust with your partner
It is never a good idea to burn bridges in business, so you should strive to leave on as good of terms as possible regardless of any bad blood in your partnership. Seeking loopholes to circumvent the terms of your partnership agreement is one example of how you might irreparably damage the trust you have with your partner.
3. Not preparing an exit strategy ahead of time
The terms of your partnership agreement should allow all partners a means to amicably exit the business in a worst-case scenario. Failing to prepare an exit strategy ahead of time can leave you trapped in a situation that is harmful to you or your career.
Business disputes that can not reach a resolution through mediation may necessitate an urgent exit from the partnership. In the event that you find yourself in this situation, consider the options available to you through your written agreements and avoid any mistakes that may have dire consequences.