One of the most critical decisions to make when starting a business is whether or not to partner with someone else. A good business partner can drive a company’s success and allow the business to grow further than perhaps one could as a sole proprietor on their own. But disputes can arise in even the most aligned of business partnerships. The experienced Tampa Bay business attorneys at Heller Law are here to highlight some of the most common types of disputes, to help entrepreneurs select the right business partners, properly prepare partnership agreements and run a company without unnecessary or preventable complications.

1. Misuse of Financial Revenue

Money is almost always at the crux of business disputes. If clear rules aren’t set beforehand as to exactly where and how a company’s profits should be spent, business partners can be tempted to spend “extra” funds on personal and/or frivolous items that either don’t provide for the most efficient use of a company’s resources, or that provide no benefit to the business in any way. Even when papers are signed and boundaries are set, disagreements can arise as to how funds should be managed.

It is essential that responsible business owners set rules in writing and that they are not be afraid to take legal action if a once trusted business partner breaks those rules. Money is always a touchy subject, but measures need to be taken to protect financial assets for the sake of the business’s success.

2. Intellectual Property Rights

It can be frustrating to keep a record of the origin of a good idea in the heat of a pressured business meeting, but poor records can come back to bite a business when it matters most. If the success of a certain intellectual property right begins to skyrocket, there is an increased risk that the ownership of said property will come into question by those wanting to take credit. Without sufficient records, answers to certain pivotal questions may be in dispute. Does the idea belong to the individual who brought it to fruition, or does it belong to the company itself? Does everyone involved remember who generated the idea, and is there proof?

The business attorneys at Heller Law can help put in place proper documentation and agreements regarding intellectual property to help mitigate the potential for future disagreements.

3. Unclear Authoritative Roles

The idea of an equal business partner telling another partner what to do when can become upsetting, and result in long lasting relationship issues involving business ownership. It’s especially a problem if that same person makes important business decisions on their own without the other partner’s consent. It can also be frustrating when there is a perceived lack of respect from a partner regarding decision making, management and operations.. What can a business do to manage and prevent authority role disputes?

The business lawyers at Heller Law can help a business owners structure properly defined roles – or represent business owners in the event a partner violates agreed-upon processes.

4. Business Goal Complications

Co-owners of a business may not see eye-to-eye when it comes to the overall goal of the company. For a business to succeed, it’s important for everyone to be on the same page and strive toward common goals, but who gets to decide what those goals are? Ideally, this is something that should be decided early in the company’s fruition, but even then, it can be easy for partners to lose sight of things along the way or change their ideas of where the business should go.

How To Choose the Right Business Partner

To avoid many of these potential disputes, it can pay to be extra diligent in selecting who to help run a business. A business owner may need to let go of personal attachments to friends and family in order to find an appropriate individual who can actually help a venture move forward. Some points to consider include:

● Experience and skill set. Do the prospect actually have the knowledge and training to perform their duties?

● Responsibleness. Are they financially stable, practice good work ethics, and demonstrate proper respect?

● Ability to provide resources. What can they contribute to the company to accomplish the main business goals?

● A shared mindset. How well do they share the company’s vision and way of doing things?

● Omission of personal interference. Is this person able to remove their personal life from business operations for the sake of the company?

Need Advice on Finding a Business Partner?

For expert business consulting to handle business litigation, reach out to the professionals at Heller Law! Give our established Tampa Bay attorneys a call at (727) 828-6071 or shoot us an email to discuss getting your business on the right track.