How To Break Up A Business Partnership

1. A Little Too Late

How To Break Up A Business Partnership:
If you are asking this question at the point of dissolution you’re already too late. Ok, not TOO late but pretty damn late to make things easier on yourself. If you are thinking of forming a partnership you would be best served at the initial stages to discuss what it will look for you and your partner in the future if and when you chose to dissolve the partnership. Think of it as a PreNup for your business and don’t start a partnership without it.

Thanks To: Kirsten Mahoney of Insight Out Life Coaching

2. Marriage Without A Prenup!

How To Break Up A Business Partnership: Most partnerships begin as friendships and grow into a business or marriage. A partnership without a prenuptial agreement is doomed, and most certainly headed for a messy divorce. In the beginning partners should create formal contracts spelling out terms and condition if a split happens, like a marriage prenuptial. When conflict arises, without a plan, partnerships fail.

Thanks To: James Taylor of Taylored Athletes, Inc.

3. Tell It Like It Is

How To Break Up A Business Partnership: I have had several partnerships and they have all turned out badly. Over the years, I have learned from my own mistakes so feel I can advise wisely. I think the best way to end a partnership is to be honest with yourself about WHY you want to end it so you can be honest with your partner. Everyone has the right to the truth, so if you express your real feelings and don’t just blame them for failing, or whatever they did, it usually goes a bit smoother. Let’s face it – no one wants to be dumped.

Thanks To: Sarah Shaw of Entreprenette

4. No Partner, No Cry

How To Break Up A Business Partnership: Even the best, most invested, relationships can end if circumstances change enough to disrupt the fundamentals. It’s best to be mature, recognize that better things are ahead, and move on.

Thanks To: Ted Marcus of Telescope Binoculars .com

5. Before It’s Legal…

How To Break Up A Business Partnership: They say “never become business partners with relatives or friends.” That leaves strangers. Hmmm. My friend and I started a business years ago. She was my manager at our previous company. We already knew we could have a difference of opinion, talk it out and come to agreement. At the start of business planning, we discussed the “end game.” We vowed we wouldn’t let the business destroy our friendship–and meant it. We included “buy-out” options in our organizational minutes. We’re still friends.

Thanks To: Susan Hawkins of My Wedding Favors

6. Ask And They Will Receive

How To Break Up A Business Partnership: Ask them exactly what they want from the remains of the partnership and to put it in writing. Do your best to accommodate them and move on your way. If they come back later asking for other things you will have it in writing.

Thanks To: Derrick Hayes of WOE Enterprises

7. Partner Or Boss Or Spouse?

How To Break Up A Business Partnership: Since I’ve always had an investment in any company I worked for, in many ways and considerations, I have always had partners. If things start getting tricky, consider mediation. The idea is to walk away like Cohan (Cagney) in “Yankee Doodle Dandy” with a handshake and smile.

Thanks To: Monica Tombers of Just So!

8. Be Honest, Direct, & Assertive

How To Break Up A Business Partnership: Like any relationship – a partnership can come to an end. The problem comes up when both sides don’t agree on that fact. But, again like any relationship, being honest, direct and assertive (not aggressive) will work best. It’s really the only way.

Thanks To: Ted Marcus of Telescope Binoculars .com

9. Just Like A Marrage

How To Break Up A Business Partnership: Design it! Figure out what is the WIN-WIN for both parties. Just like when forming the partnership there was a structure that worked for both, there is one here too as you go your separate ways. What one break up looks like is not what another one looks like. Relationships are all different. Dig deep, be curious with each other to find the win-win to end the relationship. It is possible to make it work and work well!

Thanks To: Lorin Beller Blake of Big Fish Nation/Lorin Beller & Co.

10. Plan Ahead, Fred

How To Break Up A Business Partnership: The best way to be prepared for a breakup is to plan it before the honeymoon is over. As a part of your formal partnership docs (you do have those, right?) include a buy/sell agreement. It’s much easier to be clear-headed about this when you’re still pals. The simplest form of a B/S goes like this: Party A (having determined that a breakup is needed) names a price that s/he is willing to pay or be paid for the company. Party B gets to say whether they will buy or sell at that price.

Thanks To: Amanda Lorenzo of Runt Farm

11. Dot Your I’s & Cross Your T’s

How To Break Up A Business Partnership: In other words, hire a good lawyer who will see to it that all of the proper documentation and signatures are in place. Dissolving a partnership can be emotional, especially if you have become good friends. A hug and a handshake may feel right, but you’ve got to protect yourself legally. You never know when your ex-partner may come a’knockin in the future, when your business has grown exponentially due to all of YOUR efforts. Those trusty papers will serve you well long after the warm embrace.

Thanks To: Karen Gallagher of The Lollipop Book Club

12. Make It; Take It; Break It

How To Break Up A Business Partnership: Like the wealthy bride- or groom-to-be, who insists on a prenuptial, the businessperson contemplating a partnership should insist on a contract that includes the process for dissolution. Whether one or both partners wish it, the contract should have a fair and fairly-easy-to-exit clause for ending the partnership. Take it in hand and use it. If you don’t have one, contact an attorney to help you achieve an equitable, if not harmonious, break-up of assets–as a divorce lawyer would.

Thanks To: Marlene Caroselli of Center for Professional Development

13. Plan For Disolving

How To Break Up A Business Partnership: The key to an easy dissolution is prior planning. Set up a partner agreement detailing what each person is responsible for and what decision making power each has as well as what must be done jointly. Also specify how disagreements will be resolved. Put it in writing and follow it. Without it you have a messy divorce and too much money going to other people.

Thanks To: Harriet Cohen of Training Solutions

14. Get A Prenup

How To Break Up A Business Partnership: Almost every partnership will split at some point, even for good, happy reasons. When you start a partnership, whether you are working together to produce a single event or going into business long-term, you should spell out the conditions of the partnership, how the work/money will be split, and the methods by which you will part ways. Have the breakup conversation first!

If you agree that a partnership is often like a marriage, you’ll see the wisdom in getting a prenup.

Thanks To: Betsy Talbot of Married with Luggage

15. Plan For That Bad Day

How To Break Up A Business Partnership: Have a dissolvement plan, in writing, when you begin the partnership. Then when the time comes to say good-bye, be gracious. There was something powerful that brought you together in the first place. Honor that and honor that people grow in different directions. Wish each other well…you never know when your paths might cross again.

Thanks To: Ann Ronan of Authentic Life Institute

16. Inside Out

How To Break Up A Business Partnership: Be totally honest with yourself about why this situation is not working for you. What part(s) in the situation did you play (even if it’s a simple as that you chose the wrong partners)? This will help you articulate what your reasons are for needing to terminate. It gives you a chance to back up and review, looking at the story from each person’s perspective.

Thanks To: Barbara Hranilovich of Hranilovich Illustration

17. Don’t Be Inert; Go Organic!

How To Break Up A Business Partnership: I use the positive approach. Instead of focusing on the issues that are causing me to spilt with my business partner, I demonstrate that by changing the paradigm we are working we would be much better off as separate businesses in our areas of strength and support one another as independent entities. This sort of dissolution-restoration philosophy has worked well for me throughout my 15+ years of entrepreneurship.

Thanks To: Janine Bolon of SmartCents, Inc.

18. Aim For An Amicable Parting

How To Break Up A Business Partnership: – figure out the total debt of the business
- split it fairly
- pay your share or come up with a payment plan
- communicate everything through the process, especially feelings but not in an angry or accusing way
- remember everyone is unhappy, not just you
- value the relationship with your partner

My former biz partner is still a super close friend and was my maid of honor recently! It is possible to split up partnerships and still remain friends!

Thanks To: Susan Von Seggern of SvS PR

19. Break-up Better Now Than Later

How To Break Up A Business Partnership: A business breakup is similar to a divorce. One of the most common things you hear after a divorce is the parties lamenting that they should have done it sooner and all the signs were there, etc. Truth is, in business, there are also signs and like a divorce people will often stay in a bad business relationship or a marriage for that matter so as not to have to confront the emotinal difficulties not to mention financial ramifications that ensure. Nevetheless..better now than later!

Thanks To: Craig Wolfe of CelebriDucks

20. Be Willing

How To Break Up A Business Partnership: Any type of business relationship is like a marriage. You use to talk…. do it now if this option is still open. Communication is a step in the right direction. However, if all rational thinking and emotions can’t be found, be willing to walk away….. and by walking away, I mean, move forward.

Thanks To: Carolyn Bartz of LIVING YOUR PASSION

21. Try Not To Take It Personally

How To Break Up A Business Partnership: Business is business, and that is never more true than when it is broken. If you are dissovling a business relationship that was formed without a contract, then you have some negotiating to do – just like a divorce.

The best thing you can do is keep it professional. Take the high road, keep to the facts and the issues at hand, be fair, and get on with it.

I have lived through two business separations, and although they weren’t pleasant, by focusing on business, they weren’t ugly either.

Thanks To: Ellen DePasquale of Efficient Office Computing

22. Built In An Exit Strategy!

How To Break Up A Business Partnership: Agree at the beginning of your partnership to have an exit strategy in place with the terms spelled out along with the selection of one attorney who will work in the best interest of the business and all parties involved!

Thanks To: Stacey Kannenberg of Cedar Valley Publishing

23. Rip Off The Band Aid

How To Break Up A Business Partnership: Ouch ! This one still hurts for me ..even writing about it….I have just done this no more than a few weeks ago. The WORST part was the part beforehand.Thinking about it. Mulling it over. Anticipating the conversation etc. A yoga class I went to recently taught me that you must learn how to FEEL COMFORTABLE IN AN UNCOMFORTABLE position.You do it..it hurts, its UNCOMFORTABLE, but then its done. You move on,you live with your decision.You know, doing the RIGHT thing doesnt always feel good…….

Thanks To: Rachel Gaffney of RachelGaffney’sAuthenticIrishGoods

24. Find A Win For Your Partner

How To Break Up A Business Partnership: Try to find a Win for your business partner. Could you check in with them to get their advice on a certain topic, once per quarter? Is there something of value you can provide them, that doesn’t hurt your business? Find a way for them to feel as if they gained something. They might not accept your offer, but they will appreciate being appreciated.

They were your business partner at one time and provided some type of value. Balance that value with the need to protect your business and move on.

Thanks To: Pamela Hawley of UniversalGiving

25. Work Alone!

How To Break Up A Business Partnership: Based on my experience…it’s better to work alone and not even to get into a business partnership. It’s uglier than a divorce and usually hard to recover from. Work alone and have some strategic alliances and collaborative projects, but don’t give away any of your company or your freedom.

Thanks To: Meggin McIntosh of Emphasis on Excellence, Inc.

26. Pre Nuptials Rule The Day

How To Break Up A Business Partnership: The easiest way to break up with a business partner is to have it in writing before hand. Think of it as prenuptials for business. Preparing for the end of the business before it begins is the wisest way. It does two things for you. Forces you to think about measureables that define success and provides an acceptable way to end. All partnerships eventually even if death. Be prepared ahead of time and makes life easier for everyone.

Thanks To: Scott Lovingood of The Wealth Squad Inc

27. Practice The Golden Rule

How To Break Up A Business Partnership: Whether it’s assets, clients, or resources, be fair and honest in your treatment of your partner. Regardless of how ugly it’s gotten, you can maintain your integrity by being completely honest, giving your partner what she or he is due and treating your partner the way you wish to be treated. It’s sometimes easier said than done, but it’s very necessary for you to maintain your self-respect and prevent unnecessary burned bridges and bad blood. Don’t give them any reason to slander you later!

Thanks To: Lisa Bell of Life With Inspiration