Remember when you and your business partner decided to take the leap and start something together? You had tossed the idea around for a while, but then one night sitting in your favorite diner you shook on it. At that moment, brimming with optimism, you were completely aligned and ready to change the world together. Then you went out and did it! 

You built your company together!

It’s been a while since those early days. A lot has changed, but has your partnership?

Do you continue to feel aligned in your mission? Or has life intervened and little by little (or all at once), as it inevitably does, have you become increasingly aware that your shared vision diverged somewhere along the way?

This common occurrence, which can be painfully obvious to observers, often goes unaddressed for months or even years amongst business partners. While ignorance may seem like bliss, it can often do real damage to your bottom line, limiting your exit options, one avoided conversation at a time.

There are other options. Let’s discuss some healthier ways to handle such a situation.

First things first. Let’s look at what you might already have in place.

Beyond the Buy-Sell Agreement

If there is a partner disagreement, one of the first things you will probably be asked by a professional adviser is “Do you have a buy-sell agreement?” If you beat the odds and actually have such an agreement, it may or may not be practical or enforceable. For example, if your business is worth a lot of money, funding a partner buyout may not be feasible.

That said, even in the cases where a buy-sell agreement exists and is (or can be) funded, the healthy way to start addressing concerns is simple: talk to each other. This can be so awkward and frightening that it may make sense to include an outside facilitator. But talking is most likely the right first step. Be proactive. Instead of waiting for a crisis, when things reach the boiling point to address your concerns, why not hold your head high, and acknowledge your shared successes and frictions?

It’s only scary for the first 5 minutes. If done regularly, it doesn’t have to feel like conflict at all but rather just a regular alignment between partners.

Harnessing The Imagination To Find The Right Path

As grown-up adults, once you break the ice and start talking, it becomes time to utilize the intellect we have all been given to find the right path for you, your partners, and the business. A one-size-fits-all approach does not exist for solving these complex problems, but a specific solution does. By understanding the needs, wants, and desires of the parties involved, more often than not clarity emerges and the parties discover that they have more areas of agreement than disagreement. This makes your negotiation a relationship-building exercise rather than a relationship-destroying exercise.

This may sound daunting, but you have done way harder things in your time climbing the mountain. You can do this just as successfully.

If you’re in a pinch with your business partners, we at Doescher Group can help. We work with multi-owner businesses looking to discover creative solutions to their complex problems. Consider reaching out to Doescher Group if you’d like to learn more.