Disputes between business partners are fairly common. Some are minor and can be resolved quickly, while others are more significant and may require legal action, such as mediation, to reach an agreeable solution.
Why do these business partner disputes happen in the first place? Identifying some of the root causes can be helpful. Below are a few examples.
A difference in priorities
In some cases, business partners simply have different priorities. One partner may focus on creating the best possible customer experience, while the other prioritizes maximizing profits. These goals are not always compatible and can lead to disagreements. It is detrimental to a business when both partners have a different vision of what they want it to become.
Financial issues
Money often causes disputes, such as when one partner feels they are receiving an unequal share of the earnings. There can also be conflicts over investments, particularly if one partner believes they are putting in significantly more time, effort, or money than the other.
Lack of trust
If trust breaks down, the business relationship can quickly deteriorate. In some cases, all it takes is one partner making an important decision behind the other’s back, leading to a loss of confidence that may never be fully regained.
Playing the blame game
If a company struggles, business partners may blame each other. In reality, both may be partially responsible, but pointing fingers often leads to deeper disputes that can be difficult to resolve.
In many cases, mediation can help business partners reach a fair resolution without going to court. It is important for both parties to understand how it works and how it can help them.