Business associates work together efficiently while staying focused on the goal of the organization. Disagreements between business associates may be beneficial for the growth of the organization. However, disagreements can cause a falling out between business associates.
There are many reasons why a business does not work out. However, the businesses that do make it remain above the standard and perform exceptionally well. Business associates should be prepared for the situation when their ideas and goals do not coincide with their associates by protecting their personal interests.
We would like to share some insights on “things to avoid” or “tips for business associates” to reflect upon.
- Begin Work with a Written Agreement
This doesn’t mean that you should not work without an agreement. However, it is good to have a written agreement in place. The type of business will determine the requirement for the written agreement. Your agreement should provide at the minimum the following–
– What will be the associate’s role within the business?
– What are the duties and obligations of each associate?
– The percentage of capital contribution?
– What procedures to adopt?
– Under what circumstances can the relationship between the associates be terminated?
The written agreement should contain at a minimum the above details. Providing more detail is beneficial for the parties in order to be able to answer and clarify any unknown issues that should arise.
- Focus on a Solution, Not the Problem
Whenever a disagreement arises, the business associates should take time out to discuss the issues, rather than avoiding them or cause further miscommunication. Make an effort to reach a solution and establish a basis of resolving the disagreement rather than focusing on the problem or placing blame on the opposing party. Focus on moving forward together for the business’ success. This will create a positive atmosphere and open more opportunities for a resolution.
- Address Worst-Case Scenarios
Before starting a business relationship, prepare yourself for potential business pitfalls. For instance, prepare for pitfalls beforehand and review all the possible factors that can adversely affect the success of the business or organization. Try to discover resolutions to situations or discuss the same with your business associate.
- Adopt Bold Solutions
What would you do if instead of reaching a solution, the dispute continues to worsen? A mediator may assist as a neutral and allow both parties to present their opinions and interests on the success and flow of the business. The mediator ensures that the emotions of the involved parties remain outside the business discussion offering a strategy or solution.
- Hire an Experienced Attorney
Establish a base for your business and hire an experienced attorney. An attorney will help you prepare the operating or business agreement to help in avoiding potential disputes. Every business is different from the other and so the interests and goals related to them are different as well. An agreement that is tailored to your business and your personal, as well as shared interests in the business, will help. Hiring an attorney is a wise investment.
- Avoid the Win-Lose Mentality
When you are involved in a business relationship, your goal should be to attain success together not to steal a win over your associate. Understand that you are working together because you need the skills and talents of each party in order for the business to grow. Know how to value your team, customers, and investors. Develop a contract that brings equilibrium and offers respect to each party. Involve your associates as is necessary. Your business is your responsibility. It is essential to preserve the relationship between you and your business associates.
Our firm works with you to gain an understanding of your businesses goals and needs while providing you the legal safeguards to protect your personal assets from risks arising out of your business. Schedule a consultation with our firm today!