Business Relations The Balance of Power

Sharing in a business with a friend or partner is a special occurrence. It can be a synergy which is dynamic and powerful. Conversely it can result in grief and disharmony. Let’s look at the balance of power between business partners in a same sex relationship.

The tools and techniques that each person brings to the business can vary. Financial pressures and rewards, family status and personal goals can all find their way into the business relationship.

The success of any business must be based on a strong foundation that ensures that managers and partners can work well together even in challenging times. A written framework  — a partnership agreement — clarifies the smallest issues that may cause a future breakdown.  The best time to do this is at the beginning, but it is never too late. More importantly, it should be reviewed on a regular basis to ensure a good fit.

You create this partnership agreement before a dispute occurs to remove emotion from sensible decision making.  Otherwise we attach ourselves to small details at the expense of the larger picture.

Don’t let the dream of future prosperity in your relationship be destroyed because you didn’t formulate a detailed plan. What if a shift in power means the relationship is not a good fit, and a dispute has arisen? A transparent agreement, where expectations are detailed, will assist. Without one, there is no doubt that this situation can lead to business failure. So remove the drama from your business life and clear up the expectations with a transparent concise agreement.

John Davey is the Principal Solicitor at HERM LEGAL & MIGRATION SERVICES. For more information on this artice contact on 02 6280 9622.