When a business partnership is first formed, the new partners come into the agreement full of dreams and energy. Drawn into entrepreneurship by the desire to be their own bosses, people pursue the dream of owning and operating their own companies with little thought of what could go wrong. However, many of these partnerships fail for a variety of reasons, but does that mean that business partnerships in Portland, Oregon, are doomed to fail?
Mixing business with pleasure
It is not uncommon for business partnerships to stem from friendships or relatives. While it’s tempting to make a friend or family member your business partner, doing so may lead to issues in the future. It can be extremely difficult to separate personal feelings from the business even when tough decisions have to be made. This often leads to the failure of a business partnership and the loss of a personal relationship.
Lack of success
There’s no guarantee that your newly formed business is going to succeed. In fact, the odds aren’t in your favor. A business’s failure to thrive and succeed is one of the main reasons that a partnership falls apart. While one partner may want to pivot and try something new with the company, the other party may want to get out of the failing business completely.
Breach of trust
Even if neither partner violates the terms of any contracts that are in place, it is still possible to suffer a violation of trust. If one partner breaches the trust of the other, it often leads to a chasm between the individuals that can never be mended. This possible cause of failure highlights the importance of both people entering into a business agreement with a clear understanding of their values and goals.
Consulting with a lawyer who is familiar with your state’s business law system is important, especially when a business partnership fails. While there is no reason to assume that your partnership will fall through, being prepared for the worst-case scenario is important for all business owners.