During their initial few years of operation, successful business startups may face a variety of growing pains and obstacles, including partnership breakups. If you consider today’s statistics at full value, the odds are stacked against a partnership. The average startup breakdown rate is 20-30% greater than the rate of divorce in marriage. Knowing how to exit a joint business arrangement if the paring at its core starts to disintegrate can rescue the company from a severe disaster. To this end, we have highlighted some steps on how to put someone out of business below.
Reasons for Putting Someone Out of Business
Like other warning flags, an isolated event rarely signifies the need to put someone out of business. Common difficulties can become deal-breakers when they accumulate over time and impede business and personal wellness. Some of the most common reasons for putting someone out of business include:
Someone isn’t pulling their weight.
Due to an unequal distribution of obligations, one partner bears the brunt of the stress. To avoid conflict, business partners, like parents, friends, and roommates, need to feel a sense of balance in their relationships. Relationship stresses can occur when one partner is handling most of the operations while the other is reaping the advantages.
Because the phrase balance has numerous definitions in business, maintaining equilibrium necessitates maintaining open lines of communication. One entrepreneur may believe that the day-to-day operations of their business are unfairly burdening them.
While the other, who may draw in large clients regularly, feel like they aren’t given enough recognition. The basic concept is that when partners feel unable to express themselves, the resulting imbalance can lead to irreversible relationship issues.
The contentious debate over key business decisions
Every working business partnership has disagreements. Company partners must learn how to effectively collaborate to overcome inherent variances in business philosophies and decision-making. Conflicts can lead to unsolved operational challenges when compromise is hard to achieve. Personnel, financial, and customer service disagreements can worsen any rift among partners.
Differences in working styles create everyday stress
Different personality types frequently come together in personal and professional partnerships, unified in passion for innovative products or services. However, an incompatible mix of working styles might weaken that cohesiveness.
Some individuals regard business activities as a routine and place a high value on regularity. Others prefer to do things on their own time rather than following a schedule. Are your work styles compatible? Opposite working styles worsen other underlying concerns during difficult times.
How to Put Someone Out of Business
If all attempts to settle your differences fail, it’s time to put your partner out as the owner of the business. You can do this through the following tips:
Recognize the red flags before it’s too late
It takes time to lose faith in someone and want to put them out of business. It is known to worsen with time, with minor red flags becoming major red flags. These minor blunders can quickly escalate if left unchecked, turning even the best of relationships into disasters.
To avoid this and ensure an amicable split, you must recognize the indicators of a failed business partner before the relationship reaches a poisonous breaking point. When your partner’s working habits change, this is one of the more obvious symptoms. If your colleague starts slacking off or isn’t giving it their all, it could be a sign that something isn’t quite right.
It’s worth noting that nothing ruins business collaboration faster than one partner believing they’re making all the effort while the other isn’t. However, to save the relationship, keep the conversation going—that is, listening and speaking.
Meanwhile, if you want to keep your business relationship strong, talk to your partner and see if anything is wrong. It’s important to note that ignoring this notice could make matters much worse when you want to put the person out of business. There’s usually a lot of bitterness and irritation by that point.
Another symptom that your business partnership is deteriorating, as previously said, is if you and your partner find yourselves in serious exchanges regarding the company’s direction. Yes, debating is good for business, but unresolved arguments may make business success much more difficult. That’s why it’s important not to let things like that linger if you want to keep your friendship.
Always make a decisive, quick, and clear break.
It’s important to remember that, much like disastrous marriages, business partnerships can take time to collapse. Never dismiss tensions, disagreements, or outright conflicts as a result of too many years invested together. You may believe that your arguing is good, but if it continues for an extended time, it might harm your friendship and business partnership.
As a result, it’s critical to make a straight and speedy break. Try not to waste months discussing whether you should stay in business together or sell the company. When you’ve reached the point where there’s no turning back, it’s critical to get rid of any feelings of hurt, irritation, or bitterness while attempting to get the other person out of business.
Remember that splitting up with a business partner is an overwhelming journey that can be even more difficult than divorce. However, it is critical not to allow negative feelings to enter into conversations. You don’t want to attack your business partner and then hope to spend holidays with them later in the year.
Maintain a positive dialogue
When a business partnership collapses, it’s usually due to a communication breakdown between the partners. Maintaining a good and ongoing dialogue—listening and talking—will help save the relationship.
It’s difficult to hear what another person is saying when resentment and anger have contaminated the bond. However, listening and engaging in the conversation throughout the process might go a long way toward maintaining the friendship. To minimize misunderstandings, be clear about what you want out of the split operation.
Use logical thinking
If you want to keep your friends after your business collaboration ends, both sides must be rational in determining the best manner to split ways. You’re more or less certain to say goodbye to the partnership and hello to a bitter and maybe brutal split if you don’t have that, as well as the willingness to compromise.
It’s worth noting that this may necessitate giving up a little more than you intended, but the idea is to let go and move on as quickly as possible whilst maintaining the friendship. Eventually, if the process continues without resolution on specific points, it could lead both parties involved with an unfulfilling experience and may even bring about its demise.
Employ the assistance of experts
Always keep in mind that even the most successful negotiations necessitate the involvement of a third party. Seeking guidance from an expert can go far toward accomplishing that aim for two partners who wish to keep their friendship going.
Keep in mind that someone who isn’t invested in the company can offer objective advice to avoid disputes and anger. (Even seeking assistance when a relationship is deteriorating can help prevent irreversible damage in the future.)
However, while seeking external assistance, it is critical to choose someone whom both parties can trust. Avoid engaging a lawyer. Rather, contact a business mediator, business coach, or accountant. This is quite valid because your partner can see it as a hint that the relationship is ended if you use a lawyer.
Frequently Asked Questions
Can you kick someone out of a company?
You can kick someone out of a company if he isn’t bringing the desired input to the business.
What do you call someone who is always in your business?
Someone who is always in your business is called a quidnunc.
How do you expose a bad company?
You can expose a bad company through the following steps:
- Post a review on the company’s website
- Contact the Better Business Bureau
- Contact the Federal Trade Commission (FTC)
- Post a review on the company’s social media handles
What do you call someone who owns the business and makes business decisions?
Someone who owns the business and makes business decisions is called a sole proprietor.
Can I push someone out of my store?
No. You are not allowed to push someone out of your store. It could be seen as an assault, and if there is an injury, the individual can sue you.
Can I force my business partner to buy me out?
You can force your business partner to buy you out if you’ve got valid reasons.
How do I take my name off a business bank account?
You can take your name off a business bank account by calling the bank and contacting customer service.
Can one partner dissolve a business?
Dissolving a business entails the input of more than one partner.
In conclusion, it can be difficult to put someone out of business, particularly if your partner is already a friend. Every positive person you let into your life increases your chances of being positive 11 percent, estimated a study published in 2010 in the Proceedings of the Royal Society. Of those who got a response, 86% were happy or satisfied with the results.
There are excellent and poor methods to terminate a partnership while keeping your friendship intact. Make sure you’re interacting throughout the process to soften the impact and keep the friendship alive. That necessitates a lot of discussions, acknowledging that it is sensitive without allowing emotions to get in the way, and being realistic in negotiating. For more help in this regard, the tips on putting someone out of business above will aid you immensely.
I am Lavinia by name and a financial expert with having a degree in finance from the University of Chicago. In my blog, I help people to educate by making wise choices regarding personal investment, basic banking, credit and debit card, business education, real estate, insurance, expenditures, etc.