Signs Your Partnership Isn’t Working and How to Deal With It

Sometimes you and your business partner are just going through a rough patch. Other times it’s just not meant to be. But seeing the writing on the wall before things get ugly is key to successfully dissolving an unsalvageable partnership.

There are many subtle signs that the partnership is heading south, but those can be difficult to spot and sometimes mistaken for just minor disagreements. On the other hand, there are three red flags that should prompt you to take a serious look at your partnership’s dynamics.

You’re carrying more than your fair share of the weight, and you have been for some time: A large gap in the workload between partners usually causes resentment from the partner getting the short end of the stick. If things don’t start to change, neither will your resentment.
Your vision for the future and overall direction of the company is distinct from that of your partner: You want to expand, opening up more stores and offering more products. Your partner wants to maintain a “small town” feel and just invest in the business you already have. You’re at a stalemate, and neither of you is willing to budge.
Your partner has lost all interest in the business: Your partner doesn’t seem to understand the magnitude of running the business and, on top of that, doesn’t care.

If you and your partner fit any of these, then you have to be willing to walk away, no matter how difficult it may be. But that doesn’t mean that you have to contact a business broker and put the company on the market right away. There may still be a viable business there worth saving.

Before you get too hasty and exit the business on the spot, it often pays to take one last, well-constructed stab at it (if you haven’t already). Set up a meeting with your partner to discuss why things aren’t working out, and then try to craft a remedy to solve those issues. Develop clear goals with clear deadlines. If things aren’t getting back on track in the given time, then it’s time to bail (and call a lawyer). No ifs, ands or buts about it.

You and your partner should have drawn up a formal business plan with an exit strategy, without legal documentation things can get heated. But if you didn’t draw one up, you still have options. It’s just going to be a stickier situation. There could be a buyout where either you or your partner buys the other’s share of the company. One of you could try to sell to a third party to create a new partnership. Or if none of these is right for either of you, then go ahead and put the entire business up for sale.

Entrepreneurs put everything they have into their businesses and are often reluctant to let go—so reluctant that they prolong a south-bound partnership and end up hurting the company in the end anyway. But if you recognize the early warning signs, try to remedy them and still come up short, dissolving the partnership is your logical next step.