Business Partnership Advisor
Together, we can fix your business and partnership problems
Chris Reich, Business Mediator
Terrible Tension In Family Business Partnership
In the news this week:
“A 48-year-old pizza shop owner in Bucks County faces homicide charges in the fatal shooting of her longtime partner and co-owner earlier in March, prosecutors announced. The woman allegedly wrapped the man’s body in a tarp and kept it in the master bedroom of a home in Hilltown Township, where prosecutors say she took steps to bury the remains.”
In Family and Relationship Businesses, the Tension is Multiplied
These stories are heart-breaking. I get calls every week about serious trouble in a family business. Fathers fighting with sons. Siblings at war over money. It’s tragic. In the case above, it was the son who started asking questions. Can you imagine what is happening in that family now? Read the story
The tensions run high because the parties are so close to the situation and have shared history. It’s not easy for Dad to hand over the decision-making in the family business to the son who maybe has been a little flakey in the past. The older brother has a hard time accepting that his little sister has more business sense than he has.
At this point, the reasons for the tensions are not important.
I have seen fathers and sons fighting over business. I have seen brothers in dispute over business. I have seen siblings and in-laws fight over business. It’s sad. Get a mediator before the situation is beyond repair.
Chris Reich, Business Partnership Mediator
Get a Good Business Mediator ASAP
In family businesses, when things break down, they really break down. The stress level is much higher than when a typical partnership has issues. And because people have years of history, the arguments can be pretty colorful. I’ve been involved in family disputes after someone threw a punch.
Here’s the most important thing to remember. Get help from a business mediator as soon as you recognize the problem. The mediator will help prevent the blowout that is coming. Talk with anyone in a business partnership and they will tell you about the “blowout”. Yelling, screaming, and threatening are all part of the action. Take it up 10-fold and it’s a family business blowout.
The damage may tear things apart permanently. Kids don’t see grandparents. Cousins can’t see cousins. Holidays are horrible. Don’t let it happen. It can be avoided.
The sooner a mediator is involved, the greater the chance of reaching a lasting, successful outcome.
“If there is tension in your family business partnership, get help from a business mediator as soon as possible. You must avoid a blowout.”
Let’s look at how to plan for the next generation of your family to run your business. It’s never too early to make a succession plan and the earlier you start, the more options you have.
How do I get out of my partnership? And, it’s the biggest reason I am always ranting about having a Partnership Agreement. Without a Partnership Agreement, your options are very limited. You accept anything your partner is willing to give you, or you can dissolve the business.
Somebody puts up money with someone who agrees to contribute labor as their contribution to an equal Partnership. Once things are set up, and a lot of money is spent, the other Partner fails to perform, and the troubles begin. I get 2-3 calls like this every week.
Partners take advantage of partners every day and they get away with it. It is the most painful call I get. It sounds like this, “I put all the money I had into starting our business. My partner had bad credit and no money, but he promised to do all the work to get the business going.