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Business Advice

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BigSi:
Long story, so here is the shorten version. My business partner and myself both live in different towns. He has the business address and main phone number, so because of this most of our work comes from his area. He therefore does pretty much of the quoting, invoicing, emergency call outs (has the works van), site visits, and knows pretty much most the people. Because were equal partners, he feels that he is doing most the work and should take more of a reward. He therefore wants me to become employed and work for him, there by loosing my say in the business (including a business name change). He also wants to invest more money into the business, that I can’t match.

Just after some advice, on the best cause of action.  :-k  :-k  :-k  :-k

Lord Shagg-Pyle:
I think a chat with a solicitor may be in order. Sounds like he is trying to shoulder you out.

V8MoneyPit:
If there is a genuine difference in hours worked, it is only fair to split the profit by the same proportion. We do exactly that in our business, but as a Ltd company we do it by means of dividends.

However, you have the difficulty of him receiving the majority of the calls. Is there any way you can take on more of the quoting, etc to even out the work load? Or is he actively persuing most of the work to leave you out of it?

I guess it ultimately comes down to your relationship. Can you talk it through with him to sort something out that evens out the load? If not, it has to be said, your business partnership is not likely to last anyway. Sorry to be so brutal. I do mean it in the most constructive way. If the partnership looks like it has no future, you are best recognising it sooner rather than later.

Do you have a formal partnership agreement drawn up? If so, you both have to live with it unless agreed otherwise.

One partner investing extra money is the easy part. Treat it as a loan. You both have to agree an interest rate based on what your bank would charge for the equivalent loan and he has the right to draw that interest before any other money is drawn from the business. You should also agree a reasonable term for the loan and from that, you can work out the monthly repayments, also drawn before any other drawings.

You still remain equal partners in terms of working capital and business value.

BigSi:
Most of the quoting is for work at his end (knows more people, builder, plumbers etc, and being ex-navy), and a majority of it is after hours (when people are home). I would like to do more of the quoting, but it doesn’t look very business like turning up in a V8 Land Rover! I would like to even the load, but as he has the office at his home, I don’t really have any access to it (we don’t want to spit the office either).

We have no formal partnership agreement drawn up, and if it was to disband (not what I want), we would both loose money (loans etc).

I don’t think it’s a case of shouldering me out, because he has the business talent, and I have the technical talent.

I enjoy working with the guy and we do get along well, and I understand where he is coming from, if the situation was reversed I would feel the same. But stuck for ideas on how to proceed, and just wanted to know how other people do it.

wheeler:
both take a wage that way you get paid for every hour worked
any profet can be invested back to the business
which is what he wants
which is better for both of you
as for the office at his house he can charge the business a monthly rate for this

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