Going into business with a partner can be exciting and highly profitable. However, any number of circumstances can arise that might lead you to hastily exit the business.
Whether you are leaving the business for personal reasons or closing the partnership altogether, there are sensitive matters to consider. A simple mistake that occurs when leaving a business partnership could have real consequences.
1. Ignoring your written agreement
A partnership agreement is essential when going into business with someone. It protects both individuals from behavior that could harm them or the enterprise. When leaving the partnership, be sure to adhere to any procedures outlined in the agreement so as to avoid legal repercussions.
2. Failing to communicate
Sometimes things do not go to plan in business, but that is no reason to burn bridges. Communicate your concerns and intentions to your business partner as you go forward with your exit. There could still be lucrative opportunities in the future.
3. Neglecting to consult an attorney
You should seek legal counsel every step of the way when running a business. From forming your partnership to leaving the company, sensitive issues can arise that you might not have the tools to handle. Your attorney can help you navigate the complexities of leaving your partnership while maintaining legal compliance.
The closing of one business opportunity can often open the way to other lucrative ventures in the future. By following best practices when opening or closing a business partnership, you will save a lot of time and energy that you can spend on other endeavors.