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When should you end a business partnership?

On Behalf of | Apr 13, 2023 | Business Organizations

People get into business partnerships for a variety of reasons. While working out the terms of the partnership, each party brings onto the table a set of skills, resources and expertise – and these go a long way in growing the business and boosting the bottom line. 

But like most human relationships, business partnerships come to an end at some point, and for a variety of reasons, too. So how do you know it is time to sever business ties? Here are two warning signs that your business partnership needs to come to an end: 

There is no more trust between you and your partner

Trust is the glue that keeps any partnership together. Just like your life partner, your business partner has a huge impact on your business’ finances. For this reason, you should be able to trust that they will act in the best interest of the partnership at all times. 

If your partner has a habit of stealing from the business, stretching the trust or withholding crucial information from you, then you will clearly have a difficult time trusting them. And in the absence of trust, it only makes sense to go your separate ways. 

You no longer agree on business goals and objectives

When you first got into a partnership, you probably outlined specific goals and objectives that you wanted to realize. For instance, you might have gotten into a partnership to boost your productivity or open a couple of branches. 

What happens if your partner begins a push for the business to become a publicly-listed entity while you prefer to keep things small and partner-owned? Well, when visions begin to conflict, you may have no choice but to part ways. 

Getting into a business partnership with like-minded parties can be quite fulfilling. If the partnership is no longer tenable, however, you need to understand how to protect your rights and interests while severing ties.