Business relationships can have a complicated dynamic at times depending on the personalities of the people that own and manage the company, differences in opinion and even differences in religious beliefs or educational backgrounds. For people in Colorado who are in a business endeavor with another family member, that interesting dynamic can be significantly more fragile as the pressure to keep family and business affairs separate becomes crucial.
Experts suggest many interesting reasons why the dynamic of a family partnership has to be dealt with extra cautiously including when there are stark differences in the manner that each partner believes strategic growth should be handled. In most businesses, there are noticeable differences between risk-takers and the people who would prefer to take the safer route. A partnership where contributing members feel strongly one way or the other in conflict with each other can set the foundation for disagreements to happen.
Other sources of conflict may include significant family affairs, personal or business-related mistakes by one partner, differing ideas on leadership and succession, fluctuations in commitment levels and disagreements about which opportunities should be taken or handled. A couple of valuable solutions that can be implemented from the beginning to better prevent this type of conflict is for families to establish a board of advisors who will function as an objective third-party in handling decision-making. The other option is for a contract to be written that details how the conflict should be handled and what should happen in the event the partnership is in discord with one another.
If people are experiencing debilitating conflict within their business partnership, they may wish to contact an attorney. With the advice of a legal professional, people may have the chance to recover their business endeavor without compromising their success altogether.
Source: Forbes, “Equal Partnerships In A Family Business: A Disaster Waiting To Happen,” Dennis Jaffe, Sept. 12, 2019