There may come a time when you no longer want to be a partner in your current business. If that time has come, it’s smart to break your partnership in a positive manner whenever possible. You may want to work with these people again in the future, and you don’t necessarily want to burn bridges.
If you’re going to break a partnership arrangement, there are a few tips you can follow to do it gracefully and to avoid any potential lawsuits. Here are five to consider.
- Review your contract before mentioning that you want to leave
The first step is to review your contract. Your contract should have explained what would happen if a partner wanted to leave. It may also have information about getting a severance or how to handle disagreements with other partners.
- Try to be reasonable
Ending a partnership can be frustrating for everyone involved, so try to do so with grace. Be reasonable in how you handle disputes and try to remain amicable. Failing to do this could end up resulting in litigation, which may cost the business thousands.
- Decide what the partners’ goals are
Another thing to talk about with your partners is their desired outcome. Do both of you share the same desired outcome, or are you at odds? If you agree on how you want the partnership to end, it will be much easier to go through the motions. Do your best to come to a fitting agreement.
- Be honest about why you’re leaving
Though it might not be something you really want to bring up, it is important to explain why you want to leave. Don’t act out in the heat of the moment after something upsetting happens. Explain carefully and plan your approach to ending your partnership. Be honest about what’s wrong and why you can no longer move forward with the company. Then, offer up a plan that will make the end of this arrangement work for both, or all, parties.
These are just a few tips that may make ending your business partnership easier. Be clear about your intentions, but make sure you’re following your contract to protect your own best interests.