How Do I Get Rid of a Toxic Business Partner?
Good business partners are like peanut butter and jelly—they vibe well and work in unison for the greater good of their business. On the other hand, toxic business partners are like ketchup on eggs, they don’t only affect your health, but they could ruin your business too.
If you find yourself in a toxic business partnership, the chances are you want out. Getting rid of a business partner is nothing like discarding the trash in the waste bin or ending a relationship. Freeing yourself from the shackles of a toxic business partner involves planning, a little patience, and smart execution.
Here are some helpful tips on how to get rid of a toxic business partner. But, before we delve into that, you should understand how to determine a toxic business partner.
Spotting a toxic business partner: the signs?
Spotting a toxic business partner can be difficult, especially if you aren’t sure who a toxic partner is or the signs to look out for. In that regard, we have provided you with some common telltale signs of a toxic partner:
- Poor communication
- Unaligned mission or goals
- Inconsistencies
- Lack of responsibility
- Financial disagreements
- Untrustworthy
- Zero focus on mutual success
- No enthusiasm
After confirming that your business partner is toxic, what next? Like most people, you’ll want out. But how? By following these tips.
- Determine what you want out of the partnership
If, for instance, your car gets damaged beyond repair, you’ll definitely want to salvage some things from the car before towing it to a scrapyard. The same applies to a partnership.
After making up your mind to dissolve your partnership, the next step is to decide what you want to salvage from the partnership.
Do you want your partner to resign and let you handle the business? Or do you want a cash severance for all the years of effort you invested into the business? It would help if you had clear insights into what you want after ending the partnership. After figuring out what you want, you can approach your partner to end the partnership while presenting your demands.
- Inspect your partnership agreement and the business
It is common practice to draft a partnership agreement before venturing into a business partnership. If you and your partner took this step before becoming partners, you might want to inspect the document to understand its content.
Review the document appropriately. Determine what belongs to your partner and that which belongs to you. If you both have equal shares in the company and wish to buy them out, you’ll have to figure out their worth.
Understanding the content of your partnership agreement will come in handy, especially in situations that may require you to reference your partnership agreement to quell a misunderstanding.
- Create a legally binding document for the breakup
After talking to your business partner and thrashing out a deal that you both can agree on, what next? The next step is to put your agreement into writing. Create a legally binding agreement and ensure it contains the necessary terms and conditions, including the sum of money that will be given to either party, the rights each party now holds, and what each party is barred or allowed to do afterward.
Dissolving a business partnership isn’t always a smooth ride. Issues may come up. Your toxic partner may not agree to your terms. In such a case, you may want to contact a business lawyer for help. A business lawyer can help settle partnership disputes, dissolve a partnership. This professional can also provide biased and straightforward business advice to entrepreneurs like you.
- Go your separate ways.
After discussing with your business partner about your expectations (and hearing theirs) and putting them into writing, the last step is to go your separate ways. You two are officially ex-partners and have nothing to do with each other.
Conclusion
A toxic business partnership is not only bad for your health; it is also bad for your growth. If you discover that your business partner is toxic, don’t hesitate to adopt the measures highlighted above to get rid of the individual. If any issue comes up or, perhaps, you need the advice of a professional, contact a business lawyer.
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