As the old saying goes: two heads are better than one. This is just one of the reasons that business partnerships are often an effective means of building a successful company. Partnerships offer a range of benefits, from having access to additional knowledge and skills to splitting responsibilities. Unfortunately, business partnerships can also lead to substantial conflict. When partners do not see eye to eye regarding the business, serious disputes that threaten the stability of the company can arise.

There is no way to guarantee that a business partnership will be free of any conflict or disagreements. However, partners can take certain steps to reduce the chances of a partnership dispute.

Start With a Detailed Partnership Agreement

For many entrepreneurs and hopeful business owners, the excitement of starting a new partnership may overshadow some of the more practical steps involved with creating a partnership. Although it may seem tedious and sometimes uncomfortable, building a detailed partnership agreement is one of the best things you can do to avoid conflict. Do not assume that you and the other partners will simply work out the details as you go along. This strategy almost never works. 

Business contracts are the backbone of a successful business. When two parties agree to enter into a contract, they are legally bound by its terms and conditions. If one of the parties fails to fulfill their obligations as stated in the contract, this is considered a breach of contract. Breach of contract disputes may involve non-compete agreements, nondisclosure agreements, licensing contracts, partnership agreements, or other types of agreements.

When faced with a breach of contract issues, many businesses use mediation to resolve the dispute. Mediation involves a neutral third party (the mediator) who helps the parties reach an agreement. The goal of mediation is to find a mutually agreeable solution that satisfies both parties and prevents them from having to go through lengthy and costly litigation in court.

What Happens During Mediation?

During the mediation process, the mediator will listen to both parties and help them discuss the various possibilities. The mediator may also suggest creative solutions to the dispute, such as offering the breaching party the option to make up for their breach in an alternate way. The mediator’s main job is to facilitate communication between the two parties and help them reach an agreement that they are both comfortable with.

Becoming a business owner is an overwhelming prospect, especially when it comes time to acquainting yourself with the myriad of business laws for which you will be held accountable as you commence your new role. Branding in particular will be an imperative foundation for your marketing efforts, and it all begins with one critical task: selecting a business name.

Doing Business As (DBA)

Whether you are an existing owner looking to start another side business or are embarking on a brand-new business venture for the first time, it is important to be aware of the requirement to legally register your business name with the proper authorities to ensure you remain compliant with the law. Filing your “Doing Business As” name (also called your DBA) is the process of officially registering your chosen business name. This name must be different from your real, personal name and will be required on a number of government forms and applications, such as your employer tax ID application and license paperwork.

Who Needs to Register?

Not every state requires business owners to register for a DBA, but in Texas, you are expected to register if you are a sole proprietor or partnership that wishes to conduct business under a different name. Additionally, existing corporations or LLCs must register for a DBA if they wish to operate under a name other than their existing name.

As any business owner can attest, owning and operating a small business takes hard work. It is important for a business owner to always be coming up with new and innovative ways to promote the company’s success. If you are a small business owner, you should be trying to think of ways to help your business grow. You should be looking for new opportunities to expand your client base and drive up your profits. While there is not a one-size-fits-all plan for growing a small business, there are a few general guidelines that could help you achieve your goals.

Playing to Your Strengths

Are customers drawn to your business for a particular product or service? Are there patterns regarding your most loyal clients? It may be tempting to try exciting new ways to generate revenue, but it is very important to keep your primary focus on your basic strengths—or the “bread-and-butter” if you will. For example, if you run a coffee shop and customers love your custom roasts, you may wish to look for new ways to market your products with strong sales as opposed to eliminating your own brands in favor of new products.

Diversifying Can Help Too

While your most successful products and services should take priority, there is also risk in being too focused on one thing. Relying on one or two sources of revenue can be dangerous. By taking the time to develop alternative revenue sources, you can help ensure your company’s sustainability despite market changes or changing customer tastes. Keep in mind, however, that there is also a danger of spreading yourself too thin. Work on just one new project at a time so that you do not get burnt out or become stagnant.

For many business owners and, in fact, people in everyday life, a promise and a handshake mean more than anything that could be captured in a legally binding document. The physical manifestation of a person giving his or her word regarding an agreement or transaction still carries a great deal of psychological weight, even in today’s litigious society.

While it would be wonderful to be able to consistently rely on another’s good word in business dealings, the reality is that contracts are often necessary, and, sometimes, one party fails to comply with his or her end of the deal. When that happens, your only option may be a breach of contract claim.

Three Main Elements

All contracts represent some form of a legally enforceable promise. Some, of course, are more complicated than others, but all provide certain rights and responsibilities to each involved party. In the context of business, most contracts address the purchase of items, goods, or services rendered. When the other party fails to comply with the terms of an agreed-upon contract, you may be able to bring a claim for breach of contract before the court. To win your claim, you will be required to show: