Difficult situation with ex-business partner/current client
Difficult situation with ex-business partner/current client
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jammy-git

Original Poster:

29,778 posts

242 months

Wednesday 4th January 2017
quotequote all
To give a bit of background, when I first started out running a web development agency, I started with an old friend of mine as he was already doing similar so it made sense to partner up. I am the technical side of things, he's the sales side. After 18 months it was clear we were pulling in different directions and we agreed to go separate ways. A bit of tension over the split but things ended amicably, so much so that I continue to work with him on a few projects - generally him engaging me as a sub-contractor.

Fast forward to the last few months and I've been working for him, as project lead, on a project for another web design agency in the same town as us. The people within this web design agency I get on very well with, especially the MD - just one of those relationships where you think alike and are always on the same page. I suspect they know that I run my own company and that I'm sub-contracting for my friend's company, but it's never been directly mentioned.

The MD of this web design agency has contacted me today looking to take someone on to do all their development work for them and they've approached me to see if I know of anyone - reading between the lines I suspect they are seeing if I'm interested. I would like to approach them to see if they would be interested in partnering with my company, so they would do all design work and my company would fulfill development work - our companies compliment each other very well and I would love the opportunity to work closer with the MD.

However, I do feel like this would be somewhat stepping on the toes of my friend, who is already doing the development on one project for them and surely hopes to get the development for future projects too.

Can anyone see an outcome that wouldn't result in me coming off as the bad guy in all this?

EV11NED

973 posts

183 months

Wednesday 4th January 2017
quotequote all
Do you have a non compete clause in the agreement with your ex business partner? If not, then there is no issue in having a speculative chat with the MD of this company.

groomi

9,331 posts

273 months

Wednesday 4th January 2017
quotequote all
Ignore the friendship angle for a moment.

You're looking to cut out the middle-man (your client), to work directly for the end client. If you haven't got any form of written contract with your client forbidding this then he can't stop you, however you will never work for that client again and you could expect to be 'bad-mouthed' about it. It's pretty poor form to be honest, hence why contracts usually prevent it.

Add the friend angle back in, and you'd be writing off that friendship too.

Speak to your friend/client and let him know what his client/the end client is looking for. Discuss how you can both keep them happy to ensure furthering both of your interests with the end client. It may mean you have to tell the end client you need permission from your friend to work directly, he can then chip in and kindly give his permission, but you have to pay an introductory fee behind closed doors.

As with most kinds of relationships - talk.

jammy-git

Original Poster:

29,778 posts

242 months

Wednesday 4th January 2017
quotequote all
My friend is a bit "fly by night", no contracts or formal agreements. He wouldn't be happy if I worked directly for this agency, but then we've had a very up and down relationship so far and he generally needs me more than I need him - in fact this last project has made me consider making it the last working for/with him anyway.

I'd rather not lose the friendship though. As you say groomi, best to talk to both parties and get the lay of the land....

jonamv8

3,296 posts

196 months

Wednesday 4th January 2017
quotequote all
Just talk to your mate and explain you got to do what's best for you. He won't be happy but in time he'll get over it

williamp

20,445 posts

303 months

Wednesday 4th January 2017
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remember you're also "reading between the lines". Have a chat with the company first, and go from there. If its nothing "his daughter wants a school webiste done for free, he thought I'd help...." then its nothing.

If it is something, then have the conversation. But make it clear the lead came from them, not you.

As an aside, does your friend have any other income? If so then its not so bad...

jammy-git

Original Poster:

29,778 posts

242 months

Wednesday 4th January 2017
quotequote all
Friend also runs a web development agency, but focuses on different type of project to me. He has other clients.

Have had a few messages back and forth with the MD of the agency - they'd prefer to employ someone, I said I wasn't interested, they've asked if I'd be interested in employment + equity. Will have a chat with them after I get back from holiday next week!

Thanks for all the replies so far.

davepoth

29,395 posts

229 months

Thursday 5th January 2017
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jammy-git said:
Have had a few messages back and forth with the MD of the agency - they'd prefer to employ someone, I said I wasn't interested, they've asked if I'd be interested in employment + equity. Will have a chat with them after I get back from holiday next week!
Jammy Git indeed!

Employment (even with equity) is a different ball-game to contracting so far as the relationship with the friend is concerned IMO.

DSLiverpool

16,532 posts

232 months

Thursday 5th January 2017
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I think your friend would see this as a great opportunity for you and if he is a friend he won't cause friction.
However in a similar scenario I've put aside a small % of the future projects as an introductory commission.

dmsims

7,465 posts

297 months

Thursday 5th January 2017
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DSLiverpool said:
However in a similar scenario I've put aside a small % of the future projects as an introductory commission.
Although I've no use for it smile that's a great piece of advice