www.NiallStrickland.com
The Frequent Dilemma of Joint Ownership – 2 or more Conflicting Visions of the Future Summary/Description Partnerships are notorious for failing due to the lack of a shared vision and conflicting ideas about where the business ought to be taken. However, this is also common in limited liability companies. So what are the options when you find yourself in this situation? ______________________________________________________________________________________________ Most partnerships start with a level of optimism and excitement as friends or family members decide to set up a new business. A forced partnership may also evolve when a family business is handed down to sons or daughters. In the beginning, partners and siblings work well together, as they get to grips with new challenges. The environment is one of mutual support and everyone has a part to play. The problems usually begin when the partners begin to struggle with decision making. They may have opposing views about the direction of the business. Each of them wants to be the boss and make the final decisions. They watch each other to see who is working the hardest; who is taking more vacation days; who is earning more; who has the nicest company car; who is taking key decisions. One may be interested in aggressively growing the business and the other may be happy just to stay the same. One may be a risk taker and the other may be risk averse. The list is endless. The problem is that a deep and destructive rot may set in that makes it difficult for the partners to work together. Business decisions may begin to be taken as a game of one‐upmanship rather than what may be best for the business. Often an independent referee or umpire may be required to defuse a difficult situation where entrenched positions exist. So how do you stop the spiral of negativity? One of the places to start is in crafting a business plan together. You need to explore your core values, your vision, your mission and objectives for the business. You need to establish well defined roles and responsibilities for each of you so that you both have full control over an agreed area of the business. You might consider bringing in an external resource to chair and steer this process. You need to agree how decisions get taken when you reach a stalemate so that the rules are consistent and fair. If the business is prosperous and worth saving, you must come to an accommodation with your partner, that works for both of you. In extreme cases, the sensible thing may be for you to go your separate ways. One partner may offer to buy the other out at fair market value. If you cannot agree on who exits the business then you can propose that each of you makes a financial offer to the other with the business going to the person making the largest offer. At the end of the day, life is too short to stay in a bad relationship and business divorce may well be the best option.
Visit www.NiallStrickland.com to download other Business Articles, to view Business Advice Videos or to Discover the full range of products and services available
www.NiallStrickland.com
BIO Resource Box Niall Strickland is an MBA with more than 20 years of business coaching and management consulting experience working with CEO’s in small and medium businesses. He can provide additional information about common business issues and how to resolve them at www.NiallStrickland.com. This article has also been published on www.EzineArticles.com
Visit www.NiallStrickland.com to download other Business Articles, to view Business Advice Videos or to Discover the full range of products and services available