Can you tell if your business partner is cheating you?

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Can you tell if your business partner is cheating you?

On Behalf of | Feb 19, 2021 | Commercial Litigation

As a co-owner of a business in Lafayette, you’ve worked hard to get where you are. You and your co-owner both put time and effort into this work, but you’ve noticed that the other founder isn’t as invested as they once were.

If you’re convicted that they’re cheating your business in any way, now is the time to take action.

What is “cheating” in business?

There are plenty of different examples of cheating in business. For example, if you think your business partner is working on their own business on the side and taking intellectual property from your shared business, then that would be one type of cheating. If you think they’re stealing money or giving ideas to others, investing into personal projects or making other decisions that negatively affect your business, then it is time to say something.

Are there signs that your business partner may be cheating you or your business?

Yes. There are some signs that you can look for. For example, if they are usually in charge of the financial aspects of the business (like accounting and purchase or sales) but don’t want to show you the books, then that could be problematic. While there’s no guarantee they’re hiding anything, the fact that they’re being secretive can’t help your relationship.

New behaviors are another sign that something isn’t right. If your business partner used to always be on time and have documents in order but has not been doing so lately, then it’s time to ask if they need additional help or if there is something going on that’s hurting their ability to invest their time into the business. If paperwork keeps coming up “lost” or they can’t account for expenses you’ve noticed, that may also be a sign of trouble.

No one wants to be second-guessed, and most people want to be trusted. Unfortunately, if your business partner’s behaviors have changed and they’re not willing to give you information on what’s going on, you may need to look into getting legal support to get access to the documentation you need to verify that your partner is doing what they should for your company.