Business is all about weighing risks and rewards. Forming a partnership can be a great way to pool resources and reap massive rewards, but there is always the risk that things can turn sour.
You might find that you need to exit your partnership if profits do not meet expectations or if you can no longer work well with your partner. Making a mistake when leaving the company can put you on the wrong side of business law, however, so it is important to know what not to do.
1. Neglecting to negotiate
Before making a sudden exit, it may be better to negotiate an amicable conclusion to your role in the partnership. Your enterprise should have a partnership agreement in place which provides operational guidelines and dispute resolution procedures. There might already be a process in place in the event that one partner wishes to make a seamless exit or for dissolving the business altogether if things are not working out.
2. Violating the partnership agreement
Your partnership agreement is also likely to have restrictions against actions that could harm the company or your co-owners. If you exit the business in a way that violates the agreement, your partners may be able to take severe legal action against you.
3. Burning bridges
It is important to maintain good faith with your colleagues as you exit the partnership so that you do not burn bridges that could be lucrative in the future. If a dispute does occur as you attempt to leave, the Florida court system can help mediate the conflict before your professional relationships are too far gone.
While there is no shame in exiting a partnership that is no longer beneficial, it is necessary to follow proper procedures. Doing so will help protect your finances and future opportunities.