When to End Business Partnerships
- Coach Candice
- Aug 15, 2021
Starting a business can be stressful. Often solo entrepreneurs who start a new venture find themselves quickly overwhelmed by the responsibilities. Therefore, going into business with a partner can seem like a logical decision. There are plenty of pros and cons to having a business partner, but people can find that their visions for the company no longer align with each other as a company grows. So how do you decide when the partnership no longer benefits you or your business? Here are a few signs it is time to end your business partnership. Lack of Communication Communication is the key to success for any relationship. It is through frequent and transparent discussions that a business can flourish. But what happens when the communication begins to break down? When a partnership lacks communication, mistakes can be made. If you and your partner are having issues communicating, you will see it in your business's day-to-day routines. Are employees getting mixed information, is inventory not being done correctly, are their financial discrepancies? If you are starting to see a growing pattern of mistakes, you need to reevaluate your level of communication with your partner. If your partnership doesn't make the necessary changes in communication, it may be time to cut more than just your losses. Undefined Roles & Expectations When you go into a partnership, you should set clear expectations for all of those involved. Roles should be clearly defined from the beginning. However, as a business grows, sometimes expectations and roles may change. If you find your business experiencing growth that no longer works with your current dynamic, you need to discuss what that means for the partnership. Unfortunately, some people avoid these conversations, and soon the uneven distribution of work becomes a breaking point. As the lines begin to blur on the initial roles and expectations, you will need to make it clear where you stand in this partnership, and it may involve flying solo. Inability to Grow A business' inability to grow can be influenced by many factors: lack of capital, poor marketing, lack of knowledge, etc. But what if your partner is actually stifling your growth? Like dating, the people involved must have the same vision for the future. It is painfully awkward when someone is dating to get married, and the other person wants to have a "hot girl summer." A professional partnership should have the same vision for the growth of their business in terms of longer-term goals. The goals can include how large a company you are looking to build or even the direction the business will go after a certain point. As you evaluate your business and your partner, look back on early conversations about growth. Does your partner share the same vision for your business as you do? Are they capable of change and growth? If you answer no to both questions, it is time to reconsider ending your relationship for the benefit of your business. A partner is supposed to help you create, shape, and grow a business that will be profitable while helping ease the strain of taking on everything alone. Not everything is meant to last forever, even business partnerships.