There are many reasons that people with pre-existing relationships might run a business together. Sometimes, siblings or cousins inherit a family business jointly. Other times, friends or relatives decide to combine their resources to purchase an existing company or start a new business together.
Working relationships almost invariably experience some degree of conflict. For business owners who have existing social connections to their partners, disagreements about organizational matters can have personal consequences.
How can those who share ownership of a business with friends or family members address disputes related to the company?
Establish standards ahead of time
The fact that business disputes are predictable means that those starting or acquiring companies can plan in advance for these unpleasant experiences. Those starting a new business or acquiring one together can negotiate contracts that include provisions for dispute resolution. They can even include terms for a buyout in the agreement in case a dispute proves impossible to resolve. That way, it may be possible to preserve their relationship and the business after a major disagreement.
Find a space for processing
Usually, professionals dealing with a business conflict can go home and talk about their disagreement with their loved ones. Doing so when a business partner is a friend or family member can be more problematic. There may not be the same expectation of privacy, as other people may share complaints or concerns with the co-owner or business partner. People may need a confidential space in which they can process their emotions and separate their inner personal matters from business matters. After verifying what business issues require consideration, they can then try to resolve the matter amicably.
Keep a focus on the big picture
Disputes between people who have emotional attachments to one another can easily spiral out of control. It is therefore important to have a plan in place for communicating about business disputes. Agreeing to communicate in writing can be one way to limit emotional outbursts. Sitting down with a neutral third party could also be a viable option. Attempting to see one another’s perspectives and to compromise whenever possible can prevent conflicts from causing long-term harm to the relationship.
The goal in such scenarios is usually to preserve the business, the working relationship and the interpersonal relationship between the partners or co-owners. Achieving those goals can be easier when people keep their focus on their long-term success and happiness rather than on the minutiae of a particular dispute.
Recognizing that business conflicts are all but inevitable can help people prepare for and effectively navigate conflicts with their co-owners. Those who go into business with friends or family may need support as they attempt to address disagreements about company operations, and that’s okay.