Family businesses can be a cause of conflict

On Behalf of | Feb 1, 2018 | Business Litigation

Entrepreneurs in Missouri may enjoy their business partnerships and ventures with friends and family. The people involved share common commitments, not only to the business but also to each other. However, there can be complicated and difficult problems that arise in family businesses or partnerships between friends. In these cases, the close personal and emotional ties can make resolving the business issue more complex due to issues that arise from the underlying relationship.

It can be very important for small businesses to note the danger of these types of disputes and plan ahead in order to avoid serious issues. All businesses involve disputes or conflicts of some kind, but when there are no clear policies to handle conflicts or deal with complaints, it can be difficult to find a resolution. Disagreements and conflicts in the personal relationships between people can be brought inside the business, especially when long-term feuds develop.

Having a clear business structure can help to protect family companies from disintegrating due to ongoing conflicts. For example, writing out specific policies can help businesses that are too small for a real HR department. Ongoing meetings between family partners can help to ensure that all parties remain in agreement on business matters. When non-family members become part of the business, it can be important to avoid favoritism. If newcomers are treated as outsiders, it can cause the business to lose valuable employees.

People in a small or closely held business dealing with ongoing disputes may seek to find a resolution or set up a pathway to resolve future issues. Whether planning a mediation or moving into business litigation, a commercial lawyer can help entrepreneurs protect their investments.


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Long & Robinson, LLC
1800 Baltimore Avenue
Suite 500
Kansas City, MO 64108

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Our condo association was faced with monumental construction issues thanks to the original developer of our complex. We were cash poor and in no position to get legal representation without a contingency fee arrangement. Luckily for us, Scott Long and Burke Robinson were willing to take us on as clients. Their work ethic, professionalism and knowledge of condominium construction served our association very well. Any association would be well served in hiring these gentlemen to represent them.

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