Ending a business partnership can be a lot like ending any partnership. There can be trust issues, boundaries to draw and complications for others affected by the breakup. If your business partnership ends, you can take steps to protect yourself and your company.
Shore up cybersecurity
Regardless of why your partnership ends, reinforcing your cybersecurity systems is essential during this time. It protects sensitive information from a disgruntled former partner. It can also prevent others from taking advantage of vulnerabilities when a business is going through a significant change.
Some of the areas you will want to focus on include:
- Changing passwords and logins for client details
- Implementing electronic access restrictions for trade secrets
- Moving sensitive documentation
- Updating firewalls
- Enforcing the terms of a non-disclosure or confidentiality agreement
- Collecting company-provided devices
These measures can help secure digital information and keep it from falling into the wrong hands when a partner leaves.
Review your partnership agreement
Your partnership agreement should provide guidance on obligations and responsibilities for the parties involved. It can include instructions for executing partnership dissolutions and resolving disputes.
When your partner leaves the business, completing paperwork may not necessarily be high on your list of priorities. However, doing so is crucial to ensure your company continues running as smoothly as possible.
Some of the documentation to address include:
- Business permits and number
- Existing loan agreements
Reviewing and updating your paperwork can seem tedious or even unnecessary. However, ensuring operating documents and contracts are current can make organisational transitions as smooth as possible.
While some elements of partnership changes may be confidential, communication can still be vital. Be prepared to discuss critical changes with:
- Other leaders in the company
- Financial institutions
Communication with these parties can help you prevent confusion and costly mistakes throughout this process.
Whether contentious or amicable, partnership changes can be disruptive and complicated. These tips can help you navigate these changes more smoothly.