7 Warning Signs of Partnership Conflict in Small Business

Partnerships, like other committed close relationships, could be an amazing, powerful journey - when it works right. The dual nature of relationships is a delicate topic as it is based on combining complementing personalities that provide the magical source of power and, at the same time could be a source for conflicts and disagreements.

Even the best partnerships can encounter challenges. Ignoring early signs of conflict can lead to more significant issues down the road. The earlier we identify these symptoms and handle them, the better chances for a partnership to survive and thrive.

Let’s explore seven warning signs that your partnership might be heading for trouble—and how to address them before it’s too late.

Communication Breakdowns

One of the first red flags is a lack of open and honest communication. If emails and texts go unanswered or critical decisions are being made without discussion, it's a sign that the partnership is losing its collaborative foundation.

One of the first signs that something might be a little 'off' in a partnership is when people stop communicating openly and honestly. Good communication is key to any successful collaboration, so when it starts to fade, it usually means there are more significant problems. For example, if emails and texts aren’t getting answered for a long time, it can make everyone feel frustrated and unsure. This lack of response not only slows down the flow of information but also makes team members feel ignored and undervalued.

On top of that, if big decisions are being made without talking to everyone involved, it just makes things worse. Making decisions on your own can cause resentment and make people feel left out as if their opinions and contributions don’t matter. This shift away from working together can break down trust, which is crucial for any partnership to succeed.

When communication breaks down, misunderstandings and misaligned goals can pop up, leading to a loss of the teamwork that once defined the partnership. It gets harder to tackle challenges or grab opportunities when there’s no clarity or shared vision. So, it’s important to spot these signs early. Fixing communication issues quickly can help rebuild the collaborative foundation that’s essential for the partnership’s success and longevity. Having open conversations, setting clear expectations, and making sure everyone’s voice is heard can really improve how the relationship works.

Root Cause: In most cases, lack of open communication is a sign of avoidance - partners are trying to avoid a conflict and prefer to skip the subject or act without communicating first. This is a clear indicator of a deeper cause - misalignment. When partners don't see eye-to-eye when it comes to the values purpose, and goals of the business - conflict arises, which in turn causes avoidance and communication breakdown.

Unbalanced Workloads

Another frequent challenge that partners may experience is when one partner feels like they're pulling more weight than the other. This can show up in all sorts of ways, like doing more chores, giving more emotional support, covering more financial stuff, or making more decisions. If one partner is handling too much, it can lead to frustration and burnout. This same issue can show up even when the work balance is fairly equal. It might be a perception of one partner, not fully aware of the work done by the other. Over time, this can create resentment, which can chip away at the trust and teamwork that's key to a healthy relationship.

When things aren't split fairly, or even don't seem to be split fairly, the person doing more might struggle with their self-esteem and happiness in the relationship. They might feel undervalued or like they're being taken for granted, which can kick off a cycle of negative feelings that's tough to stop. Meanwhile, the partner who's less involved might not even realize how uneven things are, thinking they're doing enough or that their partner is okay with it all.

This imbalance isn't just about physical tasks; emotional work is a big deal too. One partner might be the go-to for emotional support, conflict management, or handling social situations, while the other might not see how much effort this takes. This can leave the person handling the emotional side feeling lonely and unappreciated.

Root Cause: Actual work imbalance or a perception of an imbalance can be a result of poor accountability planning. In most partnerships, the expectation is that all partners will carry the load together equally. As opposed to employees, partners should split the work based on their skills, strengths, personal development plan, and overall workload. Concepts like dynamic leadership and role sharing are a big part of partnership planning and should take part in the leadership alignment phase of the business planning and be reviewed continuously.

Differing Visions for the Future

Another early sign you should watch for is when you aren't on the same page about long-term goals. This mismatch can show up in different ways, impacting how decisions are made and the overall vibe between partners.

For example, one partner might be all about fast growth, wanting to scale the business quickly, grab market share, and boost profits ASAP. They might push for bold moves like upping the marketing budget, adding new products, or jumping into new markets quickly.

Meanwhile, the other partner might take a more cautious approach, preferring stability and steady growth over quick wins. They might focus on building a strong foundation, making sure the business can handle economic ups and downs, and keeping quality high. This partner could advocate for detailed market research, gradual changes, and careful resource management to avoid stretching the business too thin.

These different approaches can cause all sorts of issues. Meetings might get heated as each partner tries to push their agenda. They might clash over budgets, with one wanting to spend big right away and the other pushing for a slower, more careful approach. This lack of alignment can also confuse employees, who might not be sure about the company's direction or what's expected of them.

This tension can also hurt trust and communication between partners. If one partner feels their ideas are always ignored or undervalued, it can lead to resentment. This emotional stress can make collaboration tough, with each partner digging in their heels. As a result, the partnership might struggle to make unified decisions, which can slow down the business's progress.

Root Cause: Misaligned vision and long-term goals are a result of jumping into business without assuring alignment. Alignment starts with self-awareness and continues with a long discussion about values, purpose, and a common vision for the business. When this type of misalignment exists, partners will end up stopping open and effective communication in an attempt to avoid conflicts, as mentioned in the first point above.

Financial Disagreements

Money can really stir up some drama, whether it’s in your personal life, at work, or just how you feel about things. Sorting out finances can be tricky and can cause a lot of friction between people. Take relationships, for example. If one person wants to save up for a vacation and the other thinks fixing up the house is more important, it can lead to some pretty heated arguments. Both sides might end up feeling frustrated because they just don’t see eye to eye on what’s considered smart spending.

In the workplace, differences in pay can cause a lot of tension among partners. If one of the partners thinks they’re not getting paid what they’re worth or that their salary doesn’t match up with their peers, it can make them feel unappreciated. This can turn the workplace into a competitive zone instead of a team effort, hurting morale and productivity. Plus, when it comes to a point where partners need to invest in order to support the business, things can get really touchy if not all partners are able to contribute equally. if partners feel like they’re being passed over or treated unfairly, it can mess up the vibe at work and make them lose interest in the partnership.

In the business world, deciding what to do with profits can also cause a lot of disagreements. Some folks might want to reinvest in the company to help it grow, while others might think it’s better to pay out dividends to partners. These differing views can lead to some serious debates, as everyone tries to push for what they think is best based on their own financial beliefs and goals. The stakes are high here because the decisions made can really affect the company’s future and the financial well-being of everyone involved.

Root Cause: All in all, money issues—whether they’re about how you spend, pay differences, or business strategies—can blow up fast and leave a lasting impact. The emotional baggage that comes with money matters can make these conflicts even more intense. Those differences are rooted in several causes: One is a difference in the personal relationship of each partner with the company. One may see it as an investment to sell at some point, while another may see it as a secured source of income into retirement or even a legacy to leave for their kids. Another reason is a difference in vision and long-term goals, as mentioned in the previous point. As discussed before - tension can lead to a loss of trust and healthy open communication.

Either way - it is a result of misalignment. As mentioned already - when alignment is achieved, and all are steering in the same direction and with a common vision, the priorities and goals are clear, and with that - many of the financial conflicts are eliminated.

Lack of Trust

Trust is super important in any partnership. It's like the base for everything you do together. When there's trust, you both feel secure and respect each other, making it easier to believe in each other's skills and intentions. With trust, you can talk openly and work together smoothly, hitting your shared goals and succeeding together. But if one partner starts doubting the other's choices or honesty, things can change fast. This doubt can lead to an environment where everything is questioned, and motives are second-guessed.

Once trust starts to slip away, the relationship can go downhill quickly, causing misunderstandings and fights that could've been avoided if trust was still there. The doubting partner might get more defensive or critical, while the other feels wrongly accused, adding more tension. This lack of trust can show up as less teamwork, hiding things, and not wanting to share info or resources.

Plus, losing trust doesn't just affect the partnership itself; it can mess with outside relationships too, like with clients or other collaborators. For example, a company with trust issues inside might struggle to keep a good reputation, as the internal drama can spread out, affecting how employees feel and how customers see the company.

Root Cause: Unsurprisingly, trust issues can arise from lack of alignment, especially in core values, but other misalignments as well. When tension is building up, and communication goes bad, one partner may be acting without communication to avoid conflict and, when confronted - may not be honest about it. That is a huge step of breaking trust, and once lost - it is not easy to gain it back. When people are not truthful, it is usually to avoid conflict or get away with something they did wrong. When alignment and trust are strong - you can create an atmosphere where fault does not exist, and admitting to a mistake is not a trigger for a conflict. When there is no reason to hide anything, and partners are supportive - even when mistakes are made, there is no finger-pointing - there is no reason to lie or hide anything to start with.

Unequal Recognition

If one person in a relationship, whether personal or professional, feels like they're not being appreciated or are getting overshadowed, it can really lead to a lot of frustration and a drop in morale. Feeling overlooked can come from things like an uneven split of tasks, not getting credit for hard work, or one person getting all the praise in public situations.

When one person is always in the spotlight, and the other is left out, it can create resentment. This kind of imbalance not only affects the person who feels left out but can also put a strain on the whole relationship.

Root Cause: Let's dive into this scenario: The person who receives most of the recognition could be more outgoing and extroverted and claim that it is not his fault that the other partner does not put themselves out there. This partner might be in a position or role that is more exposed to employees or the public, such as a salesperson or the CEO, while the other may be in an internal facing role such as operation or accounting.

The partner in the shadows may expect his partner to recognize his efforts, even though they might be in an internal position, doing the work behind the scenes.

Either way - those expectations, if not communicated and handled in a timely manner, can cause frustration and anxiety. It may be a result of unbalanced work perception and can lead to financial disagreement as well. As with all other cases - tension will result in communication breakdown and escalation of the situation.

Avoiding Conflict

Oddly enough, dodging conflict completely can be just as risky as always getting into arguments. This scenario can hold a different form where one partner agrees to a decision they are not aligned with, just to avoid a conflict. When people or groups avoid disagreements or keep their feelings to themselves, they might think they're keeping things peaceful. But this can actually lead to issues piling up under the surface. Ignoring problems doesn't make them vanish; they often come back even worse later on.

This happens because when conflicts aren't dealt with, they can turn into resentment and frustration. Over time, these feelings can build up and create a tense atmosphere where even small disagreements can blow up. Like, if a team member feels ignored in meetings and stays quiet, hoping they'll eventually get noticed, their frustration might grow. Then, they might blow up during a random discussion, causing a big scene that could've been avoided with some honest talk.

Avoiding conflict can also mess up trust and closeness in relationships. When people keep dodging tough talks, it sends the message that certain topics are off-limits or that being honest isn't valued. This can create emotional distance, making it harder for people to really connect. In personal relationships, this might mean partners drift apart, feel alone, or start doubting their bond because there's no open communication.

In the workplace, avoiding conflict can be just as bad. Teams that ignore underlying tensions might struggle to work together or come up with new ideas. If team members are scared to speak up, the group's effectiveness drops. Important feedback, which is key for growth, gets stifled, leading to a standstill. Ultimately, companies that focus on avoiding conflict instead of dealing with it constructively might miss out on valuable insights and different viewpoints.

Root Cause: The immediate obvious cause of conflict avoidance is an attempt to avoid confrontations and arguments. The desire to avoid conflicts is driven by the unpleasant experience of being in a conflict, but it doesn't have to be that way. Just like trust - when creating the right environment to make mistakes without finger-pointing, people do not need to lie, and when creating a welcoming environment for disagreements, conflicts will not be avoided.

Furthermore - with the right alignment on values, purpose, and vision - most conflicts will be eliminated, and those that are present - will have clear guidelines and tools to help navigate through them. Conflicts are part of any relationship, yet with alignment and communication, conflicts are actually a good thing, as they are the enablers of innovation and creativity.

What's next

When running a business with multiple partners, the rules of the game are different. The partnership combines the principle of a personal relationship with those principles of small business. This combination can boost the business and make it thrive much faster or it can hinder growth and cause tension and anxiety.

Recognizing the symptoms early provides a better chance to work on the partnership and bring it back on track. As you can see, working on alignment is an important step that can eliminate most of the symptoms mentioned in this blog post.

If you are in a partnership and experiencing any of those symptoms - your best path is to work on aligning your core values, purpose, and common vision, build trust, and create an environment that promotes vulnerability.

At Back on Track, we specialize in working specifically with partnerships and have developed a program that guides the partners through self-awareness and interpersonal dynamics, which covers conflict transformation and leadership alignment.