Entrepreneurs get into business partnerships for a variety of reasons. Done right, a business partnership can help you leverage each party’s strengths and grow your bottom line.
While business partnerships are governed by the partnership agreement, they are largely built on trust. Unfortunately, theft is never uncommon in the business world. If you learn that your partner is stealing from the business, you need to act quickly.
Telltale signs that your partner could be dishonest
The best way to establish if your business partner is engaging in theft is by ensuring that your books are up to date. Closely watching your financial records allows you to keep tabs on the money trail. By monitoring sales and expenditures, you will be able to note the red flags that are indicative of something sinister.
What kinds of activities indicate your partner may be stealing? Consider these:
- Excess personal expenses: If your partner is billing the business more than usual for personal expenses. like unusually numerous business trips and extravagant meals, then you need to ask questions. Your partner could be living beyond their means on the company dime.
- An unexpected change in business income: Businesses go through low and peak seasons. However, if reported sales have suddenly fallen without a clear explanation, then you need to investigate what could be going on. This could be a sign that your partner is either diverting cash to their own pockets.
There are few things as distressing as learning that you are in a business partnership with a dishonest person. Find out how you can safeguard your interests and recover damages from a partner who is stealing from the business.