I am Dr. Hassan, a Board-Certified Physiatrist and Independent Practice Owner. I help physiatrists start and grow their own profitable practices so they can achieve financial independence and live without limits.
When building a profitable practice, you may have to part ways with a business partner you aren’t in alignment with anymore. You don’t know what happened. You used to be so good together. The future looked bright. And every time you were together wonderful things happened. While that might sound like a fairy tale romance, we’re talking about a business partnership. As good as it was, you’re faced with the difficult decision of terminating a relationship that’s been so beneficial for both of you. You might have been through some tough times together. Maybe this person is a good friend, in addition to being a business partner.
Whatever the situation, here are five steps to part ways with a partner you built a business with, so everyone involved can successfully move on:
1. Develop an exit game plan. This exit strategy should be in place long before you talk to your business partner about a possible breakup. Are you going to buy your partner out or sell your stake of the business to them? Maybe someone else is coming in to take your place? Would it be better to merge with another business? Be sure you know exactly what you want from this breakup before you sit down and talk about it.
2. Get an attorney involved. You might not think this is needed. This is a case of ‘better safe than sorry,’ in case things go terribly wrong. There may be some formal business documents or agreements that can make the process easier for both you and your business partner.
3. Express gratitude but be reasonable. If you have a business partner who’s tanking your business, you should still be thankful. No matter how much harm this person is doing. They’ve partnered up with you and the two of you have a lot of history together. Express gratitude for the hard work your partner did in the past. You should also be reasonable and not let someone who’s killing your business, convince you to stay together.
4. Talk about the future. How is this going to affect your employees? Are you leaving the business or buying out your partner? Put yourself in your partner’s shoes? What’s the future going to look like for them? Be transparent and reasonable so you can hopefully avoid any legal or personal conflicts?
5. Consider sweetening the deal. Is there any way to make this breakup advantageous for your partner? Giving up a little more than you might like could be a smart move that greases the wheels of this process and helps you part ways quickly.
Breaking up isn’t easy. Whether it be with a boyfriend, girlfriend, spouse or partner. The five steps we just shared with you can make parting ways with a business partner as amicable as possible. They allow both of you to move on and pursue other endeavors.
It’s not easy letting a business partner or associate go. Check out our blog post here for tips on having difficult conversations in business.
I’m Dr. Hassan, a Board-Certified Physiatrist and Independent Practice Owner. I help physiatrists start and grow their own profitable practices so they can achieve financial independence and live without limits. Please go to businessofrehab.com/contractnegotiations to pick up the free guide to help you negotiate the contract of your dreams.
Attention, Physiatrists! Stop leaving money on the table. Sign up for the free video series: How To Build A Profitable Practice in 90 Days or Less: http://www.sixtytosuccess.com