Starting a business venture with a like-minded partner can be exciting and highly profitable. Even if your business experiences a great deal of success, though, the possibility exists that you will eventually want to go in a new direction.
Whether due to internal conflict or a drive to pursue a different path, leaving a business partnership is not something to undergo lightly. There are certain mistakes you should avoid so as to prevent unforeseen consequences when exiting your partnership.
Refusing to negotiate
The sudden exodus of a business partner can negatively affect the company in dramatic ways. It may be in the best interest of the business and your relationship with your partner to negotiate an amicable exit. For example, consider working with your partner to establish a procedure you can follow to ensure that your exit is seamless and non-impactful to business operations.
Violating the terms of your partnership agreement
When you begin a new business venture with a partner, you likely sign a partnership agreement together that protects your individual rights and responsibilities. If you violate the terms of this agreement as you exit the company, there may be severe legal repercussions.
Breaking trust with your business partner
Refusing to negotiate and violating your partnership agreement are just a couple of ways that you might break trust with your business partner as you exit the company. Any act that breeds hostility can lead to burned bridges, which may come back to haunt you if future business ideas require a healthy relationship between you and your soon-to-be ex-partner.
It is often the case that attempting to exit a business partnership can lead to disputes that are difficult to handle alone. Please contact our law firm for more information.