Imbalance in Division of Labor
Continuing our consideration of whether it’s time to break up, we consider some warning signs of an imminent split, as detailed in Entrepreneur.com’s May 16, 2017 article, authored by John Boitnott. https://www.entrepreneur.com/article/294280
The article mentions the first sign of an imminent split: Somebody isn’t carrying their weight. I would modify that only slightly to say, a perception that somebody isn’t carrying their weight. So many times, I get into negotiations for a business break up and all of the partners believe each of the other partners is loafing. Each has an inflated sense of his or her contribution and minimized or was unaware of the other partners’ contributions.
You have probably heard the saying: Perceptions are reality. That maxim is surely true in relationships that involve work and money. Once the perception is lodged in a partner’s mindset, it is incredibly difficult to dispel.
If a partner who feels like she or he is pulling the load for the entire company suddenly learns that other work is done by another partner, the “load pulling” partner may question the value of the work, question the quality of the work. For the “load pulling” partner, figuring out that the big reason for the break up is poorly grounded in fact rarely changes anyone’s mind about a business break up. The sense of imbalance persists. The “load pulling” partner’s intent to break up remains.
While there are a number of strategies the could have been implemented to avoid the perception of imbalance, once the perception has taken hold, the chances of recovering may be slim. A break up may be inevitable.
As always, in advance of a break up, the partner contemplating break up should exercise her or his partnership rights to review information about the financial condition of the company. The partner contemplating break up should be sure she or he has a full understanding about who the company’s customers are and how cash flow works.
With current and accurate financial information, the partner may contemplate her or his options in breaking up the partnership relationship. A partner armed with good information may strategize and plan for her or his partner’s response to a proposal to break up. Gaming out the possible reactions prepares a partner for calm and strategic negotiations and a better outcome.
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