If the business is failing and your working relationship sours, there are steps you can take to either mend fences with your partners or dissolve the partnership
My fiancé decided two years ago to go into business with his sister and her boyfriend. The business is a entertainment venue and restaurant, but because they jumped into the business without a business plan or clear vision, it is failing. My fiancé knows this and wants out, but because of the emotional and verbal abuse he has endured from his sister's boyfriend, he feels trapped and doesn't know how to exit the business. What can he do? —S.D., Elk Grove, Calif.
Your fiancé's situation is a good illustration of why it is so important to plan thoroughly before starting a business. If these three had prepared a business plan (BusinessWeek.com, 1/7/08) and drawn up a formal partnership agreement (BusinessWeek SmallBiz, June/July, 2007), there would be a clear exit strategy laid out that any of them could follow. But without valid legal documents, there can be ugly financial and legal repercussions when a business goes sour.
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