Business partners should observe the terms of their partnership agreement. This includes contributing to the business by performing the required duties and making agreed-upon financial contributions. A partner who does not contribute to the company may be breaching the contract they signed.
Here is what to know about this matter:
How can you tell your partner is not contributing?
It’s easy to spot a noncontributing business partner. Examples of signs you may recognize are not attending meetings and not contributing cash to cover business expenses.
You should also be concerned if your business partner attends meetings but fails to contribute to the discussions, lacks enthusiasm for the company’s goals, performs their duties poorly, fails to take responsibility for their actions or does not contribute effectively to projects.
What can you do?
A business partner not actively contributing to the business can negatively impact it. For instance, if they fail to contribute toward startup costs, the company may experience financial strain, which might affect its growth.
If a business partner regularly ignores emails or meetings, a business may not make crucial decisions on time. While waiting for input from the non-contributing business partner, it may miss out on opportunities, and so forth.
Thus, it’s crucial to know what to do when your business partner is not contributing to the business. Consider having an open and non-confrontational discussion with them to express your concerns early. Aim to understand the reasons behind their behavior.
You should also review the partnership agreement to ensure you are all reminded of your expected responsibilities. Then, agree on solutions – develop a plan to prevent such a problem from recurring.
A business partner may suddenly stop contributing to the business. If you are currently dealing with such a partner, obtain more information to protect your investment.
