When it's time to end a business relationship

Sometimes things don't work out.

Whether it's with clients, business partners, or employees/contractors.

So what happens if a business relationship has gone sideways? I'm going to mainly be focused on service businesses vs product based businesses.

Being proactive is one of the best ways to prevent this.

Decide the type of people you're looking for. When it comes to clients, we know how important it is to know your values and what you can offer clearly so you can attract those types of people in your marketing. The same is true of relationships within your business.

This might be hard when you first start out and don't have experience working with anyone, or you need to just get started.

But even still, you need to know yourself - your scope of practice, what you want to offer, what services you can offer, and honestly, what your strengths and weaknesses are.

When it comes to business partnerships or team members, similar rules apply. What skill gap are you filling so you know who you're looking for. Our HR instructor has often said that people tend to hire others just like them... rather than the skills and approaches they don't have. What shared values are non negotiable?

And then ensure you get a contract in place. Have one drawn up or reviewed by your lawyer or consider a template created by a lawyer (I have an amazing referral if you need one).

But if you're already in some kind of business relationship that is not working, what can you do?

I always encourage good, honest (and respectful) communication.

Ask them to meet to discuss.

Take time to clear as many emotions as possible. An angry conversation is likely not going to be as productive as a calm one.

Collect your thoughts and point of view.

Be open to hearing theirs. Understanding whether you can salvage and improve a relationship is important.

If after this conversation you feel that ending the relationship is best, know what your contract states.

Ending any business relationship is hard. But it's probably in your best interest to at least see if it can be repaired.

If not, aim to end things on friendly terms as you don't know when or if your paths may cross again.