You’re starting a business in Florida with someone else. It’s an exciting time, but worries about partnership disputes linger, and you may be wondering what you can do to ensure that your partnership succeeds.
Benefits of starting a business with another person
Starting a business with other people by one’s side can be much easier than going it alone. After all, working with partners can translate into more startup capital, increased brain power and additional asset protection options. However, there can be downsides to partnerships too.
Drawbacks of starting a business with another person
It happens all the time: Two or more friends decide to start a business together, and they tell themselves that nothing can or will cleave them apart. Then, fast forward a few months. Vicious disagreements have mushroomed into contentious litigation, and everyone is at each other’s throats.
Unfortunately, such a scenario is common. Why does it happen? Partnership dissolution usually stems from:
- Unequal effort
- Lack of success
- Too much success
- Differing values
Do business partnerships have to fail?
Shockingly, 70% of business partnerships fail, but yours can be one of the 30% that survives. The key to success is effective communication bolstered by legal safeguards. Business partnership prenups kill both of those birds with one stone.
The process of drafting the contract forces all signatories to discuss their wants and expectations early on. Moreover, the resulting document serves as a guiding beacon through the initial growth stage. If things go south, having the document helps save lots of headaches and legal fees.
Business partnerships can work if all parties treat the relationship with respect. A solid contractual foundation also keeps things moving in the right direction. To establish a valid contract, you would be wise to connect with a business law attorney in Florida.