Having a business partnership is great for a myriad of reasons. You can combine your business senses with those of a trusted colleague. However, just having a partnership isn’t a foolproof means of business success. There are all kinds of things that can cause trouble for your partnership. These “5 Deadly D’s” should be known by everyone considering a business partnership.
Divorce
Conventional wisdom would tell you that divorce is a personal matter and has no real effect on a business. But things change when it’s a business partnership. The terms of the divorce could allow your partner’s former spouse to receive or maintain some stake in the company. Depending on their temperament, their ex could fight to receive a bigger share or harass you and your partner in other ways.
Default
Before you form a business partnership with someone, you need to get a good assessment of their financial sense. If they are in serious financial straits, it could lead to your business taking the hit. It might not seem fair that you would be penalized for the financial matters of your partner, but there are ways around it. One strategy is forming an LLC. This way, you can make sure that your company’s assets are protected.
Drug Abuse
Being a professional and struggling with drug abuse are not mutually exclusive. People with good social standing are as liable to become addicts as anybody else. One of the most alarming trends is opioid use. Abuse of prescription opioids up to and including fentanyl are becoming extremely common, and opioid addiction does not confine itself to any one class, color, or creed. If your partner isn’t able to keep their health in check, you may have to cut ties with them so that your business doesn’t suffer.
Disinterest
A table cannot stand up if one leg is missing, and a partnership cannot survive if one member isn’t pulling their weight. If one partner is showing signs of apathy, it might be for the best that they leave the business before their disinterest causes serious damage. Consider their job performance and if there are any alarming drops in quality and/or motivation. Sometimes, people get into slumps that they can get out of with a bit of encouragement.
Death
The death of a partner is probably one of the last things you want to think about, but it needs to be put into consideration. It’s incredibly difficult to go through, not only for the emotional devastation but also for figuring how your business will transition in the aftermath. The easiest is for a spouse or another person named in their will to inherit their stake in the company. If there is no one willing or able to take over for them, you may elect to sell their stake.
These items are meant not to scare you away from a business partnership but to alert you to some difficult things you might experience. Your business needs to be ready to handle all kinds of emergencies as deftly as possible. Once you know the “5 Deadly D’s”, you can work on the best strategies for keeping your business alive.
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