Tennessee entrepreneurs that are planning are entering into a 50/50 business partnership should know that this sort of business structure could face certain difficulties. However, some issues may be avoided by taking a few precautionary measures and investing time into building a partnership agreement that will lay out a roadmap for handling complications.
Conflict may have a negative effect on a business. It is even worse when it is a 50/50 partnership because the conflict means deadlock for the company. If the disagreement escalates to the point of a legal dispute, that could cost the company a lot in time and resources. In order to avoid this situation, partners should have in place a quick and economical conflict resolution process to handle disputes when they surface. For example, a walkaway provision that allows a partner to cleanly severe ties with the company.