How to get rid of a lousy business partner?
Getting rid of a non- performing business partner is time-consuming and frustrating at the same time. Usually, an exit strategy is mentioned in the partnership deed which is the pre-nuptial equivalent of a business marriage. Before taking any step, one must consult a business lawyer to go through all possible options. Here are three of the many ways listed:
Buy them out
If you are running a profitable business, buying out your partner may be the best bet. The partner may walk away with a huge chunk of your money but, in the long run, it would be better for the business and also your sanity.
Exit with a royalty deal
Usually, product companies that have a patent have a royalty deal built into their partnership deal as an exit strategy. If this is the case, then you both may shut the business. This is the best scenario if your partner helped you with inventing the product but you two are not able to run the business together.
Dissolve the partnership
If you are just in the initial stage of business and you fear your partner may run the business into the ground, it is your best bet to cut your losses now. You don't have a brand following and you are not at a profit-making stage. Hence this is the best time to dissolve a partnership early on.