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4 common reasons behind business partner disputes

On Behalf of | Jul 3, 2023 | Commercial Disputes

Having a business partner usually ensures that you avoid facing the challenges of running a company by yourself. Unfortunately, having a partner may also sometimes lead to conflict, which, without proper resolution, may adversely affect your business.

Understanding the causes behind these disputes might help you reduce the risk of them occurring. Here are some areas that often lead to conflicts involving business partners.

Management approach

Different partners may have different ways of handling their employees, and these can lead to significant disagreements. For example, you may feel that your partner is too strict, and their tendency to micromanage leads to reduced productivity. Your partner may also think you are too lenient and encourage staff to neglect their jobs.


People are often uncompromising regarding their values, so it is often problematic when partners disagree on this matter. One partner may focus more on the means to an end, while another is willing to bend the rules to achieve a desired outcome.

Profit inequity

Some partners contribute more money to fund the business and usually receive compensation through greater stakes or profit shares. Conflict might arise when partners feel that the compensation they receive is disproportionate to the amount of funding they contribute.


Business partnerships survive on trust. If your partner breaks your trust by giving you false information or failing to uphold promises to you and your clients, you might not feel inclined to continue the relationship. You may also question their commitment and how their actions might affect the business.

Even minor disagreements can blow up and seriously affect your business, so it is best to address them as early as possible and seek ways to prevent them from happening again. An attorney can help you find ways to legally resolve issues through solutions that match your needs and intended outcomes.