A business can be a lot to handle for one person. That’s why many people create business partnerships. There are many benefits to a business partnership, such as sharing liability and expanding client awareness. Business partnerships can last for years. These professional relationships can grow stronger for the benefit of businesses.
There may come a time when business partners have to cut ties and go their separate ways. It’s not always easy to tell when it’s time to end a business partnership. Many business owners don’t want to end their professional relationships because they believe there’s still untapped potential. Here are a few signs that it’s time to end a business partnership:
Your partner isn’t taking responsibility for their duties
Before a business partnership is made, each party should understand their responsibilities and obligations. Perhaps a partner is responsible for handling record keeping or paying taxes. Or, they may be in charge of marketing and client outreach.
When a business partner doesn’t do their role, then a business can suffer. Talking about this issue may be difficult if a partner is aware of their responsibilities but still doesn’t do their fair share of work.
Your partner’s lack of experience isn’t helping a business
Many business owners seek partners who can provide unique skills and knowledge. These skills often complement skills that owners may lack, such as managing social media.
However, a business partner may lack skill and experience. This can be problematic for business owners who would then have to teach their partners how to manage their work. Balancing a business and teaching a partner can make it harder for an owner to focus on matters that would benefit their business.
How do you end a business partnership?
When business owners realize it’s time to end their partnership, many people don’t know what to do next. The first thing owners may need to do is have an in-depth conversation with their partner that goes over the difficulties of the relationship.
Then, owners may need to review the partnership agreement and discuss exit strategies. A well-made business partnership should have a clear exit strategy that conforms with the law.