Studies have shown that the vast majority of business partnerships in New York end up falling apart. Despite this, thousands of people create new ones every year, seeing it as an easy way to cut costs and share responsibilities with other people. Business partnerships aren’t destined to fail, but you should consider the possible consequences before you enter one.
Why do business partnerships fail?
When you mix personal relationships with business ones, the resulting disputes can ruin a friendship. Someone might be a great friend, spouse or relative, but that doesn’t mean that they’ll be a good business partner. They might make poor decisions or refuse to take accountability for their actions. Even personality conflicts could lead to arguments, forcing you to dissolve the business and end your relationship.
If your business doesn’t take off right away, the stress could cause a strain on your partnership. You or your partner might feel cheated because the other party promised a successful venture. To make matters worse, you might have sacrificed a lot of time and income to get this business started. If you can’t turn your luck around, you might end up hiring a business and commercial law attorney to help you end the partnership.
Sometimes, you and your partner have two different visions for your company. You might want to go as far as you can while your partner wants to run a small local business. If you can’t agree on how far you should take your company, one of you might have to leave the partnership.
How can you resolve business disputes?
If you’re in the middle of a business dispute, trying to resolve it yourself could lead to further issues. An attorney could help you resolve the dispute and either keep your business or walk away from it depending on your individual needs.