Business partners need to be on the same page to grow the business. However, it’s not uncommon for disputes to arise. Different factors can contribute to this, including financial disagreement, poor communication, unequal workloads and vagueness in the partnership agreement.
Business partnership conflicts can have negative impacts on the company, including:
Disruption of business operations
When business partners disagree, some operations in the company might be disrupted. For example, if the partners were in the process of deciding to hire employees, allocate funds to a project or expand into a new market, such operations may need to be delayed if the partners can’t be in the same room.
Further, if a business partner believes the workload has been unequally distributed and, in turn, decides not to work until it’s resolved, the operations of some departments may be disrupted.
Damaged client relationships
If a dispute between business partners is so visible that even clients can see it, the business can lose the trust of clients. For instance, if they can’t make decisions together, there may be an inconsistency in service delivery to clients – cases of missed deadlines and reschedules can be high.
If this continues and clients lose confidence in the company’s ability to deliver as they did before, they may stop working with the business altogether.
Reduced employee morale
When a dispute between business partners creates an intense work environment, employee morale may be reduced. This can lead to decreased productivity and, in some cases, an increased employee turnover rate.
What should you do?
It’s crucial to solve a business partnership dispute as soon as possible before it leads to the above-discussed effects and more. Obtain more information to determine the best way to hold a conversation with your business partner.