Most small businesses fail, unfortunately. They say half won’t exist for more than five years. That statistic is even more staggering when you realize that there are over 30 million small businesses in the United States. According to the Small Business Administration, small businesses make up 99.9% of all companies. When you think of what it is like to be a business owner, shift your focus from Apple and Amazon and consider the bagel store owner, the person who walks your dogs, or your favorite taco truck.
Small business owners fuel our economy, provide jobs, and make our neighborhoods unique. At Foldenauer Law Group, we have firsthand experience of how difficult it is for these businesses to survive. It’s a jungle out there. In addition to building a customer base, establishing a brand, and growing, businesses face challenges from within. Even the closest of friendships can deteriorate rapidly when they become business partners. When employees sue their employers in California, employers can be held liable for damages plus the employee’s attorney’s fees, if the employer should lose at trial. If the employer prevails, they are not often compensated for their legal costs. The fact is, the former employee’s attorney’s fees may significantly outweigh the actual damages the employee is pursuing.
Helping You Stay In Business
Our purpose and privilege are to help those who start businesses stay in business. Business partners can find themselves at odds for various reasons, such as breach of oral or written contract, breach of partnership or shareholder agreement, or breach of fiduciary duty, or business torts such as misappropriation of assets and trade secrets, fraud and deceit. But a partnership dispute doesn’t have to be the end, nor should it immediately force you into litigation or bankruptcy. At Foldenauer Law Group, we are dedicated to helping businesses solve conflicts quickly and efficiently. We believe there are many methods of resolving disputes without incurring the expense of litigation and trial. These include early business structuring and planning, mediating and good ol’ fashioned negotiating, to name a few.
The approach we use is entirely dependent on your situation. For instance, mediation overseen by a neutral third-party can reopen the path for effective communication. It is a cost-effective way of creating a foundation for moving forward, and it could strengthen the most fractured partnership.
There are also instances when the partnership is beyond repair. This may require more nuanced negotiation techniques to find a way for the business to continue. Or, it may require obtaining a valuation for the company and outlining appropriate terms for the sale. If you and your partner are set on moving on from the business, then it could be sold to an outside party or even an employee from within your organization. There are many options available.
Let Us Support You & Your Business
Our respect and appreciation for small business owners are unparalleled. If you have questions, we would love to learn more to see if we can help, or at least point you in the right direction. Contact our firm today and schedule a consultation.