My partner and I have frequent disagreements over spending the petty cash. To fix that, I wrote up a rule and asked her to sign it. She refused. We need rules but that didn’t work. I don’t feel like we need mediation for something this minor but I don’t know what to do.
There’s an old expression that goes back to the early days of this country that says, “good fences make good neighbors.” That means setting clear boundaries is a way to avoid a lot of disputes. I am a big believer in applying that axiom to business partnerships. Many little tensions leading up to a big blowout are usually rooted in a lot of minor incidents that could have been avoided. Defining “rules” will usually eliminate the behaviors that irritate partners. I recommend that partners talk through a specific issue and then draft an agreement (called a resolution) that sets a policy. You can keep this in a binder to serve as amendments (or foundation) to your Partnership Agreement. In this post I’ll explain how to talk about things that bug you with your partner and how to draft a binding resolution to fix the problems. Let’s go!
Keep in mind that I’m talking about real business matters and not personal quirks. If your partner likes green ties and you hate green, get over it. If, as the question above says, there are problems with managing the petty cash, deal with it. Letting those things go often leads to arguments. The first step is sort out the feelings from the business reality. Ask yourself if you are being nasty and controlling or if this truly matters to the business. If it matters, let’s go to the next step.
You’ll want to address issues like this in a somewhat formal meeting. Set a time to talk when you both (or all) have time without distractions. Meet privately. This is not something to share with your receptionist or sales team. It’s a partnership matter for partners only.
Don’t write a rule and email it to your partner or shove something at them to sign. That’s not respectful to them. Do not prepare a vwritten document. That will make your partner leery of future requests to talk about policies. You can think about how you want to present your thoughts, but don’t draft anything until you meet.
The first time you have a meeting like this, it might be a little awkward. Future meetings will be much easier if you handle the first one correctly. You’ll want to say something like, “I’d like us to talk about making a policy on something. Let’s talk and you can tell me if you think it’s a good idea.” Stay low key. Don’t say something stupid like, “things need to change and I want some rules.”
Introduce your topic clearly and without accusation. “We are having a hard time managing the petty cash. For example, when the delivery guy brought the food for the client meeting yesterday, the petty cash was empty and I barely had enough to cover it. It was a little embarrassing.” See? That states the problem and why it matters to me. I didn’t say, “what did you do with the money?” There is little need to hammer the point home.
Next, offer a solution. “I propose we make a resolution saying that whomever draws the petty cash down to $20 or less, needs to notify the other partner so the cash can be replenished or at least we both know it’s running low.” If your partner agrees, draft it in the form of a resolution. Be sure to ask you partner for input. Draft it together. Then sign it. It’s important that you sign it. Then put it in your partnership agreement binder.
Read to the end! There’s a link to download a sample resolution at the end of this article.