Your advice...
Discussion
Yes, we have an agreement in place and I realise I will still own 30%. Negotiation was fine but things change and the set up ultimately didn't work for me. My business partner has a good income from other areas whereas I don't really.
I'd like to continue but have to be realistic. I can't spend potentially 3 years earning a small salary. Its put enough pressure on my OH and even though we are fairly comfortable financially I understand he frustration of getting to a good financial situation and then taking 3 years back.
Will have 'the chat' on Monday about pulling out. I can take my investment out but this will really leave the business without anyone to drive it when, after a challenging second year where we learnt a lot, it really needs someone to drive it. I will be doing something else and so can't be there to do this and so leaving my investment with the company might not be wise.
I'd like to continue but have to be realistic. I can't spend potentially 3 years earning a small salary. Its put enough pressure on my OH and even though we are fairly comfortable financially I understand he frustration of getting to a good financial situation and then taking 3 years back.
Will have 'the chat' on Monday about pulling out. I can take my investment out but this will really leave the business without anyone to drive it when, after a challenging second year where we learnt a lot, it really needs someone to drive it. I will be doing something else and so can't be there to do this and so leaving my investment with the company might not be wise.
Neither a business as small as you say, YOU are the business. Without you it'll never hit the levels it does now so if you move on getting your 30% back would be nice as the alternative, taking 30% of profit but not working in the business will realistically not pay a penny.
First as I said the business will flounder without you and second, if by some remote possibility it doesn't, it'll never show a profit!
So either stay on better terms or try and cash out though unless you previously agreed either of you found it may well be your partner values your 30% at less than you do.
Good luck though as its not an easy situation.
First as I said the business will flounder without you and second, if by some remote possibility it doesn't, it'll never show a profit!
So either stay on better terms or try and cash out though unless you previously agreed either of you found it may well be your partner values your 30% at less than you do.
Good luck though as its not an easy situation.
Thankyou4calling said:
Neither a business as small as you say, YOU are the business. Without you it'll never hit the levels it does now so if you move on getting your 30% back would be nice as the alternative, taking 30% of profit but not working in the business will realistically not pay a penny.
First as I said the business will flounder without you and second, if by some remote possibility it doesn't, it'll never show a profit!
So either stay on better terms or try and cash out though unless you previously agreed either of you found it may well be your partner values your 30% at less than you do.
Good luck though as its not an easy situation.
Yes, its hard to see what will happen to it. He has recruited someone to work on one of his other businesses but I have no idea why because that business isn't doing much at the moment and (even if he is) I am not sure it has the future he thinks it does and it really needs him to get it going properly first. He's just going down the 'I'll get someone to drive it' route without realising or understanding how much supervision and input it will still require from him.First as I said the business will flounder without you and second, if by some remote possibility it doesn't, it'll never show a profit!
So either stay on better terms or try and cash out though unless you previously agreed either of you found it may well be your partner values your 30% at less than you do.
Good luck though as its not an easy situation.
I feel disappointed that the business I put so much time and effort into won't be a part of my life going forward but, just as a small start i posted my CV on a few job sites and had a lot of call and two interviews lined up on around £60k each. Its hard not to be very tempted (although I accept I haven't even been to them yet) by the benefits of these, both with good companies too. Its hard to let go.
Just a little update on this, we decided to split. We had a bumpy (but predicted) Year 2 in which we made little financial improvement and although things look positive for next year with some good potential partnerships in the offing I can't really get around the fact that my business partner does not seem as committed to the business as me. I want to really drive it but I am not doing it for free and the business, once we get an administrator in, can't afford to pay me. A real shame as it was exciting but such is life. I'll get my original stake back out of the business too. My BP did vaguely talked about buying him out at £30-45k but its not worth that. I could start up on my own but I am not sure if I'd feel ok doing that, it sort of goes against our friendship and I'd want to use the contractors I have now (which I found and have relationships with). Oddly, when talking about leaving the business he said something about getting me to sign a non-compete but I don't believe I have to?
If he's buying you out then I guess you'd sign whatever the two of you agree to. That doesn't mean you have to agree though and unless the £30-45k that he wants for his share is the original stake that he put in then I wouldn't be inclined to sign anything like that.
If the £30-45k includes a large premium but the amount he would be paying you does not then you've got a pretty good reference about how your BP views the divide between your friendship and your partnership.
If the £30-45k includes a large premium but the amount he would be paying you does not then you've got a pretty good reference about how your BP views the divide between your friendship and your partnership.
Undirection said:
Just a little update on this, we decided to split. We had a bumpy (but predicted) Year 2 in which we made little financial improvement and although things look positive for next year with some good potential partnerships in the offing I can't really get around the fact that my business partner does not seem as committed to the business as me. I want to really drive it but I am not doing it for free and the business, once we get an administrator in, can't afford to pay me. A real shame as it was exciting but such is life. I'll get my original stake back out of the business too. My BP did vaguely talked about buying him out at £30-45k but its not worth that. I could start up on my own but I am not sure if I'd feel ok doing that, it sort of goes against our friendship and I'd want to use the contractors I have now (which I found and have relationships with). Oddly, when talking about leaving the business he said something about getting me to sign a non-compete but I don't believe I have to?
non-compete with what - the business that you partly own?!I think you are being taken for a ride on all sorts of levels...
The business I am leaving behind. He's mentioned it but I don't think I am under any obligation to do so and although there are no plans to start up in competition, who knows what will happen in the future. I'll be out of it by Xmas with my initial investment back so no real harm done and some valuable learnings. I was talking to him yesterday and he has all these new ideas which I think only complicate and undo the proposition and so I can only see it going one way (like his other businesses): trickling along and into oblivion at some point. Oh well.... SEP
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