When Business Partnerships Break Down
Handling a Breach of Agreement
Whether you’ve just launched an eatery in your area, want to turn the locals on to your homemade trinkets, or have aspirations to dominate the global market for your products or services, focusing on navigating the marketing maze close to home first is often the wisest way to build a solid foundation for future growth. Here are three tips for building a presence in your backyard. If you know your neighbors well, you can sell to them. It’s reasonable to assume you know a few things about the place where you live. Your community’s culture, key industries, economic standing, and demand for your business are critical to consider before establishing your business locally. If, for example, you intend to offer a product or service that the locals generally have previously had to travel out of the area to purchase, you can beat the faraway competition by offering discounts based on a customer’s zip code. This promotional tactic attracts local customers while nurturing community connections. The Community Connection Tips for Capturing Local Customers
Most business partners don’t start out planning to take advantage of each other, but things can change. Maybe someone stops doing the work. Maybe they start dipping into funds without telling you. Maybe they cut a side deal and keep the money. Whatever it is, you feel it in your books, in your gut, and sometimes both. These situations are frustrating, but they can also be illegal. Misusing business assets, hiding income, or even just refusing to contribute can be considered a breach of fiduciary duty or a violation of your written agreement. A lot of partnership contracts include specific steps for handling disputes, like mediation, forced buyouts, or even a process for walking away. The contract might not solve the problem outright, but it gives you footing, as does documentation. Keep records of who agreed to what, who dropped the ball, and when things went sideways. You’d be surprised how quickly memories get fuzzy when money’s involved. We’ve had business owners come to us after months of giving their partner the benefit of the doubt. Meanwhile, accounts were drained, and vendor relationships have fallen apart. That’s not something a handshake fixes.
Texas law offers a few different paths for when partnerships go south. If your partner’s actions are hurting the
company, you might be able to remove them with a court order. In more extreme cases, you may need to dissolve the business entirely. On the other hand, if you want to keep things going but just can’t work with this person anymore, there are ways to structure a buyout or redistribute ownership.
Care about the same things your local customers do.
As you establish your local footing, focus on things that bring your community members together. If local high school sports events are popular pastimes for your potential customers, consider sponsoring a team or donating to school fundraisers. Showing your commitment to supporting things your target local demographic values — and the visibility from engaging in such activities — will go a long way in helping you build a reputation as the go-to source for your neighborhood’s needs.
Not every dispute has to turn into a lawsuit. Sometimes, a sharply written letter gets the message across. Other times, you need to show you’re serious. But one thing we always tell people is not to
Catch consumers in the ‘net.’ While you can still achieve some of the best local marketing the old-fashioned way (by hitting the streets), you can also find invaluable information while surfing the web at home. You can expand your online presence by identifying and listing specific keywords to attract local views. For example, if you want to drive sales of pizza at your casual dining establishment, using keywords like “best pizza in [town/city]” or “pizza delivery in [town]” can be advantageous. By starting small and thinking locally, you can plant the seeds for growth in your community, leading to greater financial rewards than you ever imagined.
assume that waiting it out will calm things down. Bad behavior in partnerships usually escalates. The longer you leave it alone, the harder it is to unwind. Sul Lee Law Firm helps business owners across Dallas and beyond figure out what to do when partnerships stop working. Whether you want to salvage the relationship or cut ties for good, we’ll help you get clear on where you stand and what comes next.
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