Businesses in Ohio fear litigation and with good reason. Business litigation can be expensive even when you win. From the time spent in court rooms to legal fees, it all adds up. However, what many businessowners do not see coming is the possibility of being sued by their own business partner.
There are a number of reasons your business partner may choose to sue you. A common reason stems from business disputes you fail to resolve together. In these instances, seeking a peaceful resolution and making a timely exit before the relationship goes from soured to rotten is key. Here are a few signs to watch out for.
According to Inc., if you no longer communicate when problems arise, the partnership is already heading downhill. Many of the conflicts that end up in a court room could easily have been resolved between business partners if both parties were willing to communicate openly and honestly. Both parties may even opt for a neutral mediator, such as a therapist.
Egos get in the way
While men may do more peacocking than women, everyone has an ego. When the stakes are high and money is on the line that ego could come out and stir up a bit of trouble. Partners may refuse to admit when they are wrong or want to take all credit for themselves. This may rub a lot of people the wrong way, including employees, vendors and even clients.
Lack of trust
Whether it is trusting a partner with money or business decisions, once doubt sets in paranoia may follow. This may quickly escalate to pointing fingers and making legal allegations. Trust is an essential part of business, so regardless of how well everything else may work, if there is no trust, it may not be wise to maintain a business relationship.
At the start of a business partnership, you may have idealistic views of working together. However, reality rarely lives up to these expectations. Some partnership squabbles can be resolved, but if you recognize that things have taken a toxic turn it may be time to jump ship before it gets worse.
This article provides information on business partnerships and should not be used as legal or professional business advice.