When you and your colleague formed a partnership, you likely had the same vision and goals for your business. Things were going well for a while, and you were enjoying success.
But people change, and it may be that you and your partner no longer see eye-to-eye. Now you’re wondering if it may be time to make some changes.
Signs your partnership is no longer working
- You have different visions of the direction the company should go.
- Your partner is making risky decisions that could negatively impact the company.
- There is no longer clear communication, creating tension and misunderstanding.
- You and your partner are not equally investing your time and money.
- Your partner consistently fails to follow through with commitments.
- You no longer trust or respect your partner.
If you recognize any of these signs, you may want to consider ending your partnership. If so, here are some guidelines:
- Review your partnership agreement to see if there is anything regarding dissolving the partnership, the division of assets and liabilities, and any other details.
- You may want to discuss your intentions with your partner. Try to refrain from becoming emotional and remain professional.
- Consider the financial and tax implications of the dissolution and any future obligations.
- Be sure to document all conversations and actions throughout the process.
- Inform your clients, vendors, employees, and other parties regarding the change.
Dissolving a partnership can be a difficult process. It’s important to seek help from someone who can help you understand your rights and obligations and ensure that you are in compliance with state and federal laws.