When you start a business with someone, you expect to share the journey, including the highs and the lows. However, what if your partner suddenly decides to cut you out of the business?
It can be a shocking and devastating experience, but there are steps you can take to address the situation and protect your interests.
Stay calm and assess the situation
First, remain calm as you gather all the information you can about what has happened. Try to understand the reasons behind your partner’s actions and whether you observed any warning signs beforehand.
Review your legal documents
Review any contracts, agreements or partnership documents that you signed when you started the business. These documents may outline the rights and responsibilities of each partner and provide guidance on what to do in case of business disputes or disagreements.
Protect your intellectual property
According to the U.S. Census, in February 2024, 436,358 individuals applied for business licenses, and many have intellectual property associated with their companies. If you helped develop any intellectual property for the business, such as patents, trademarks or proprietary technology, document your contributions and consider consulting with a professional to ensure you safeguard your intellectual property rights.
Consider the future of the business
Regardless of the outcome, consider the future of the business and your role in it. Depending on the circumstances, you may need to explore options, such as selling your stake in the business, exiting gracefully or pursuing other ventures.
By taking proactive steps and seeking assistance when needed, you can navigate this difficult situation and move forward with confidence. Remember to take care of yourself throughout the process. Lean on friends, family or a support network for guidance and encouragement.