10 Behaviors That Will Destroy a Business Partnership

Many of us shake hands over a partnership without knowing the behaviors that will destroy a business partnership. We expect that the partner will always be committed, loyal, and truthful.

However, that’s not always the case. Missed updates, mismatched finances, or an offhand remark can be discomforting. And before you know it, you can’t stand your partner.

In this guide, we discuss the 10 behaviors that will destroy a business partnership, the causes, how to read the signs, and the systems that can prevent these.

I’ve had very successful business partnerships over my 16 years of entrepreneurial journey. I know for sure that putting the right systems in place can prevent poor communication or fraudulent financial activities.

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TL;DR – Behaviors That Ruin Business Partnerships

Here’s a list of 10 behaviors that ruin business partnerships.

1. Lying
2. Lacking emotional intelligence
3. Fighting over financial inequity
4. Bringing personal problems to work
5. Clashing over business priorities
6. Arguing over management styles
7. Behaving inappropriately
8. Talking behind the back
9. Fighting over roles and responsibilities
10. Clashing over personal values and beliefs

Why Business Partnerships Fail More Often Than You Think

The list of behaviors that harm business partnerships may look like they can be easily overcome. If such were the case, then 70% of business partnerships wouldn’t fail! Let’s look at the reasons.

1. Misaligned vision, mission, and goals: The basic elements of any business are vision, mission, and goals. If partners don’t agree on whether to go slow and steady or take the high-risk, high-reward way, it will definitely lead to behaviors that will destroy a business partnership.
2. Lack of communication: Instead of clearly communicating, guessing the partner’s intentions, avoiding meetings, and leaving misunderstandings unresolved can lead to irreparable business relations.
3. Undefined roles and responsibilities: When business partners are not sure of their roles and responsibilities, it creates confusion, gaps, and inefficiencies, eventually leading to business and partnership failure.
4. Money matters: From each partner’s investment in the business to their personal withdrawals, profit sharing, and areas to reinvest, money is involved at every stage. Disagreements over financial matters lead to business partnership failures.
5. Power play: Power imbalance between business partners can skew team members toward one over the other. If a partner feels less valued or has less power or control over business decisions, the business partnership will eventually fail.

10 Behaviors That Will Destroy a Business Partnership

We have seen the causes of business partnership failures above. These causes lead to specific behaviors discussed below.

1. Lying: When a partner lies about finances, performance, responsibilities, or any other business-related matter, trust is broken.
2. Lacking emotional intelligence: During the low times of the business, if one partner buckles under pressure and starts blaming the other, it leads to bad partnerships.
3. Fighting over financial inequity: When one partner feels they’re putting in more money or time, but not getting a fair return, they can be rude or outright angry.
4. Bringing personal problems to work: When business partners bring home problems to work, complain, skip work, and lose focus on business goals, they inevitably ruin the business and the partnership.
5. Clashing over business priorities: Another behavior that destroys a business partnership is when partners clash over which project or team deserves more attention, instead of focusing on how to accelerate business growth.
6. Arguing over management styles: Some leaders are easy-going, while others won’t bend any rules to achieve their goals. Business partners often target each other’s management style, which leads to a fallout.
7. Behaving inappropriately: Passing comments on a business partner’s or team mates’ age, gender, looks, or making unwanted physical contact can destroy a business partnership.
8. Talking behind the back: If one partner talks negatively about the other one to their team mates or clients, it can spread, leading to confrontation and business partnership problems.
9. Fighting over roles and responsibilities: Responsibilities like pitching for funding or negotiating with vendors, or staff and legal management, are true for any business. If one partner expects the other to perform any or all of those, or fight over who gets to do what, it’s bad for the business partnership.
10. Clashing over personal values and beliefs: One partner may be very transparent and believe in business ethics. If the other one is ready to do some shady deals to benefit the business, it leads to a clash, with your brand losing reputation, one of the risks of entrepreneurship.

How to Spot the Warning Signs Early

We have explored why businesses fail and the behaviors that lead to a business partnership’s downfall. Now, let’s look at the red flags a toxic business partner shows.

• Lack of respect: If your partner is always shrugging off your suggestions, fails to recognize your contribution, or doesn’t acknowledge your opinions and ideas, it’s a warning sign of a bad business partnership.
• Poor communication: Look for times when you were not updated about important business decisions, goals were set without your contribution, or your partner never agreed to have one-on-one meetings with you.
• Criticism: Some business partners belittle your efforts, look for the smallest mistakes, never give good feedback, or call you out in front of the team.
• Backbiting: Your business partner may show another early warning sign of a bad business relationship if you hear about your personality or personal life being negatively discussed among clients and teammates.
• Financials under wraps: If you have no clue about the financial health, profitability, and growth details of your business, chances are your partner is hiding the financials from you.
• Broken promises: Breaking promises and making excuses are some early warning signs that the business partnership is not doing well.
• Unreasonable expectations: Bigger paychecks, faster growth, or zero work-life balance are some unreasonable expectations that can come from your partner. These signal a downhill partnership.

Systems That Can Prevent Most Partnership Issues

Although it’s difficult to change one’s personality and value systems, with some systems in place, it’s possible to prevent most partnership issues.

In my 16 years of ongoing entrepreneurial journey, I’ve seen that the following work for a great business relationship.

• Partnership contract: A partnership contract should be a legally binding document signed by all the partners. It should clearly mention the roles and responsibilities, financial contribution, profit sharing, equity, decision-making processes, dispute resolution processes, and exit strategies.
• Written mission, vision, and goals: From the onset, all partners should agree on the business’s mission, vision, goals, and strategies. These should be documented and signed, with room for revisions as and when the business environment changes.
• Communication and task platforms: Using online communication and task management platforms, partners can keep communication channels open, share clarity on project progress, and identify bottlenecks to avoid flare-ups.
• Documentation: Meeting minutes, business decisions, vendor and client negotiations, and agreements should be documented and shared with relevant partners and team members with clear responsibilities and deadlines.
• Transparent financial dashboards: All partners and relevant team members should have access to all financial statements, metrics, KPIs, and reports to measure the company’s health and foresee any issues. Outsourcing such services saves time and keeps the books clean.

Learn how to outsource effectively to increase business efficiency.

When and How to Get Out of a Bad Business Partnership

Check for the warning signs discussed above. If one or more of these persist, or if the business is going downhill, then take it as a sign to get out of a bad business partnership.

But before you do, try to outsource to a neutral third-party that might salvage the ruined partnership.

More importantly, refer back to the partnership agreement and check all the relevant clauses, especially the exit strategies.

In writing, make a bid for a buyout or dissolution and try to keep it fair for clients and employees. Settle all debts and inform all stakeholders.

Avoid doing anything that might get you into a legal complexity.

Frequently Asked Questions (FAQs)

Here are some common questions and answers about business partnerships.

What Legal Steps Protect Partnerships From Toxic Behaviors?

An in-depth partnership contract, drafted by lawyers, protects partnerships from toxic behaviors. Such a contract creates accountability, clearly states buyout, selling, and exit strategies, and ensures disputes are resolved fairly.

Should I Hire a Business Coach or Mediator Before Ending the Partnership?

Hire a business coach when you see the early warning signs of a toxic partnership. The coach can help realign vision and goals, fostering better communication and accountability. When the business reaches a point where it seems unsalvageable, hire a mediator to facilitate a fair dissolution process without incurring legal costs.

Can You Save a Partnership If Trust Is Broken?

It’s possible to save a partnership after trust is broken, only if the guilty party is willing to admit fault, apologize, take responsibility, and prove through consistent actions that they have changed. The other partner should also be open to giving a second chance.

How Often Should Partners Review Partnership Agreements?

Although annual or biannual reviews are common, it’s better to review the partnership agreement when a business reaches a new milestone, there are changes in taxes and laws, or when there is an early warning sign of conflict.

Conclusion

From my experience of successfully co-founding five businesses, I know how important it is to avoid behaviors that will destroy a business partnership.

For that, I believe in background checks and a legally binding partnership contract. Learning to read the early warning signs can save the business partnership. If it still doesn’t work, a coach or mediator can help. When nothing works, act on the agreed-upon clauses in the contract.

You can avoid all the bad blood by installing automated systems to manage work and finances seamlessly.

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