Business partner concerns! And just about to go intobuiness what to do? Go it alone?

[Keelham]

Hi fastlaners

Some background....

So it's been 2 month since my mate told me to read a book which gave me this burning desire to become a entruprenure. We decided to start a digital marketing business he has sales experience and that's really it. I have marketing web design skills and business skills. In the months gone i have gone all out changed my job to give me more time learn everyone I could about running a digital marketing business and also purchase 11 books on business and scaling a business etc. We are ready we will be fully setup by next week or 2.

We planned on doing everything 50 / 50 but to me it seems like I have done all the work i am the one looking everything up in spare time doing the leg work on know what we need to to etc and he hasn't even completed a course I asked him to do so he would have a basic understanding for the business he says he doesnt have time he does have a kid and works a job 6 days a week.

What should i do? a extra hand in getting clients is helpfully. But at the start till the buiness makes money enough for us to quit our jobs then its more than like he wilm do one to two hours a day trhough the week then maybe a one 7.5 hour workday on Sunday
Where as i will be putting in Monday Tuesday Wednesday 10hrs per day then while i work on my night shit thursday to Sunday i will get I will get in 2hours min a day
So I will be working around 38 hours per week to his 17.5 hours i also done all the work finding out what we need to do in order to be able to make the business work i don't sake him off but was thinking that the business should be mine but I can offer him a director position which at the begining wont pay owt but i could also offer him profit share at somert like 30- 70 / 60 -40 rather than ownership 50 50 split.
Any suggestions advice help on sorting this or even a virtual slap if i been stupid any think to help a brother out would be super fu*king appreciated

 

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[Hong_Kong]

We planned on doing everything 50 / 50 but to me it seems like I have done all the work i am the one looking everything up in spare time doing the leg work on know what we need to to etc and he hasn't even completed a course I asked him to do so he would have a basic understanding for the business he says he doesnt have time he does have a kid and works a job 6 days a week.

If he says he doesn't have time, then why would you think this would change in the future? Next! Cancel him and keep moving.

 

[Keelham]

If he says he doesn't have time, then why would you think this would change in the future? Next! Cancel him and keep moving.

Cheers man appreciate input definitly give me sumert to thinkabout.

 

[WestCoast]

My favorite line on this:

"What's the only ship that does not float?"

....
...
..

"A partnership"


--
I have 3 minority investors in my main business now, totaling less than 10%.
I've known and worked with each of them for 10+ years, most of them 20.

So, it was easy to do a minority share offering last year to them.

That said, for 18 years, I had no partners, no co-owners, and I would not change that at all.
I'm sure there are benefits, I am sure there are good partnerships. But just like marriage, there are lots of bad ones.
And the bad ones are BAD.

I choose my partner carefully in both instances.

 

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[CareCPA]

Like @WestCoast this is why I try (and have so far succeeded) at not having other owners/partners in my business.

If your friend is good at selling, then pay him a commission on each lead or conversion.
If your friend then wants to learn how to fulfill the work, pay him a rate that works for both of you.
Treat him as a contractor/employee, not as a partner.

From just this description alone, he is never going to be as invested in this business as you are (especially if he has a steady job and a family).
Either (1) your business is going to be successful and he's going to get a large payday for much less work than you, or (2) the business is going to fail and you're going to point fingers at each other. Neither of those sound ideal to me.

 

[Rangermac2]

Hi fastlaners

Some background....

So it's been 2 month since my mate told me to read a book which gave me this burning desire to become a entruprenure. We decided to start a digital marketing business he has sales experience and that's really it. I have marketing web design skills and business skills. In the months gone i have gone all out changed my job to give me more time learn everyone I could about running a digital marketing business and also purchase 11 books on business and scaling a business etc. We are ready we will be fully setup by next week or 2.

We planned on doing everything 50 / 50 but to me it seems like I have done all the work i am the one looking everything up in spare time doing the leg work on know what we need to to etc and he hasn't even completed a course I asked him to do so he would have a basic understanding for the business he says he doesnt have time he does have a kid and works a job 6 days a week.

What should i do? a extra hand in getting clients is helpfully. But at the start till the buiness makes money enough for us to quit our jobs then its more than like he wilm do one to two hours a day trhough the week then maybe a one 7.5 hour workday on Sunday
Where as i will be putting in Monday Tuesday Wednesday 10hrs per day then while i work on my night shit thursday to Sunday i will get I will get in 2hours min a day
So I will be working around 38 hours per week to his 17.5 hours i also done all the work finding out what we need to do in order to be able to make the business work i don't sake him off but was thinking that the business should be mine but I can offer him a director position which at the begining wont pay owt but i could also offer him profit share at somert like 30- 70 / 60 -40 rather than ownership 50 50 split.
Any suggestions advice help on sorting this or even a virtual slap if i been stupid any think to help a brother out would be super fu*king appreciated

Cut him out! Man isn't pulling his weight sandbagging and when your trying to get the boat to float you take out the unnecessary weight (Not saying this person isn't important but in the business he is being unnecessary to success). If he really cared about it he'd be willing sacrifice everything just as you have, working in the spare time and changing jobs uprooting your life. It's not easy to do this but why split 50/50 when the work is going 95/5 he's made you an employee to your own company limiting his principle risk to basically zero. So far you've done everything yourself.. might as well start the business up on your own.

Business Partnerships are like any other relationship, you have to learn to cut out the ones who are constricting your success and impeding your abilities. It hurts and its not easy, but you have to surround yourself with the people who are willing to give in all that you do. Support you and want to collaborate. I'm going through that right now myself with who wants to be in my life, is in my life, and who I want out of my life, but let me tell you - you can always find better business partners in the future when you need them or outsource the work.

It's up to you. You can cut him out now in the development stage before he gets anymore rooted in your work OR you can confront him on it and require him to change and if he doesn't, well then cut him out. The final solution - the frictionless and easiest one is what you're already doing, despising his lack of effort while basically working for him on your dream. Inevitably, if you continue with the final option you all will still split along the road once pressures and difficulties arise. You see the writing on the wall so assess this and analyze what you think is the best option.

Best of Luck!

Edit: Reworded the Business Partnership Paragraph

 

[Keelham]

My favorite line on this:

"What's the only ship that does not float?"

....
...
..

"A partnership"


--
I have 3 minority investors in my main business now, totaling less than 10%.
I've known and worked with each of them for 10+ years, most of them 20.

So, it was easy to do a minority share offering last year to them.

That said, for 18 years, I had no partners, no co-owners, and I would not change that at all.
I'm sure there are benefits, I am sure there are good partnerships. But just like marriage, there are lots of bad ones.
And the bad ones are BAD.

I choose my partner carefully in both instances.

Thanks for your input appciate it

 

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[Keelham]

@CareCPA Yeah true neither of them are ideal thanks a lot for the reply

 

[Keelham]

@Rangermac2 Thanks for you input mate i meeting him monday so i will have a the hard conversation then will bring the fact up he not had time like others said and will tell him that he needs to change or he's out. And there will be no split.

 

[Keelham]

Just wanted to let you know ...

Well i have dropped him a message offered him a job role in the business converting leads then once business takes off a full time position with more responsibility. I just want to thank you all for commenting i really appreciate it not just for your advice but for the incite into myself aswell.
@Hong_Kong @CareCPA @Rangermac2 @WestCoast

 

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[Hong_Kong]

Just wanted to let you know ...

Well i have dropped him a message offered him a job role in the business converting leads then once business takes off a full time position with more responsibility. I just want to thank you all for commenting i really appreciate it not just for your advice but for the incite into myself aswell.

Whats the point of keeping him around? Is it realistic to expect someone with no time to run a business, and no involvement in the business to be able to "convert leads"? You are the one working on it, talking to customers etc. so why have him close the leads?

Are you sure you're not just a little bit afraid of going at this alone?

 

[Keelham]

Whats the point of keeping him around? Is it realistic to expect someone with no time to run a business, and no involvement in the business to be able to "convert leads"? You are the one working on it, talking to customers etc. so why have him close the leads?

Are you sure you're not just a little bit afraid of going at this alone?

Well honestly possibly am but at same time no i guess i wanted to keep him around as i want to turn this business in to somthing that runs without me and well having him in from start where I can essentially groom him to run it how i want it to be run and trust that its in good hands as i want to start this business to get into property as that is also a somthing i have been studying for a while now it's just need money to take ACTION

 

[biophase]

Well honestly possibly am but at same time no i guess i wanted to keep him around as i want to turn this business in to somthing that runs without me and well having him in from start where I can essentially groom him to run it how i want it to be run and trust that its in good hands as i want to start this business to get into property as that is also a somthing i have been studying for a while now it's just need money to take ACTION

Your thought process doesn't make any sense here. Why don't you also work on converting leads right now? Do you have so many clients that you are doing the marketing for that you don't have any time to get more clients?

What makes you think you can turn this over to him? He already doesn't have time for this.

Here's what I never understood about partnerships. I've seen people do it because they don't want to start a business by themselves. So they get a partner to split the work in half. But guess what, you also only get half the profit. So you are doing the same amount of work for the same profit anyway.

So, just do it yourself. Hire an employee once you need help. Don't promise him or anyone anything.

BTW, your posts are very difficult to read without any punctuation. It took me a few times to even understand your first post.

 

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[Rangermac2]

Just wanted to let you know ...

Well i have dropped him a message offered him a job role in the business converting leads then once business takes off a full time position with more responsibility. I just want to thank you all for commenting i really appreciate it not just for your advice but for the incite into myself aswell.
@Hong_Kong @CareCPA @Rangermac2 @WestCoast
[/QUOTE]

Whats the point of keeping him around? Is it realistic to expect someone with no time to run a business, and no involvement in the business to be able to "convert leads"? You are the one working on it, talking to customers etc. so why have him close the leads?

Are you sure you're not just a little bit afraid of going at this alone

Well honestly possibly am but at same time no i guess i wanted to keep him around as i want to turn this business in to somthing that runs without me and well having him in from start where I can essentially groom him to run it how i want it to be run and trust that its in good hands as i want to start this business to get into property as that is also a somthing i have been studying for a while now it's just need money to take ACTION

Soooo you're trying to make him an employee then? It'd probably be easier to start it on your own and then employ him to do the work for you. Making him run the business when you step away when he believes that you are in it as partners will result in him thinking of you and holding you as a hypocrite which could prevent his cooperation in running the business. This is a bit of an extraordinary situation but you'll figure it out

 

[iivalky]

Hi fastlaners

Some background....

So it's been 2 month since my mate told me to read a book which gave me this burning desire to become a entruprenure. We decided to start a digital marketing business he has sales experience and that's really it. I have marketing web design skills and business skills. In the months gone i have gone all out changed my job to give me more time learn everyone I could about running a digital marketing business and also purchase 11 books on business and scaling a business etc. We are ready we will be fully setup by next week or 2.

We planned on doing everything 50 / 50 but to me it seems like I have done all the work i am the one looking everything up in spare time doing the leg work on know what we need to to etc and he hasn't even completed a course I asked him to do so he would have a basic understanding for the business he says he doesnt have time he does have a kid and works a job 6 days a week.

What should i do? a extra hand in getting clients is helpfully. But at the start till the buiness makes money enough for us to quit our jobs then its more than like he wilm do one to two hours a day trhough the week then maybe a one 7.5 hour workday on Sunday
Where as i will be putting in Monday Tuesday Wednesday 10hrs per day then while i work on my night shit thursday to Sunday i will get I will get in 2hours min a day
So I will be working around 38 hours per week to his 17.5 hours i also done all the work finding out what we need to do in order to be able to make the business work i don't sake him off but was thinking that the business should be mine but I can offer him a director position which at the begining wont pay owt but i could also offer him profit share at somert like 30- 70 / 60 -40 rather than ownership 50 50 split.
Any suggestions advice help on sorting this or even a virtual slap if i been stupid any think to help a brother out would be super fu*king appreciated

If he hasn't or won't contribute to your business he shouldn't be earning 50% of your profits

 

[Keelham]

Your thought process doesn't make any sense here. Why don't you also work on converting leads right now? Do you have so many clients that you are doing the marketing for that you don't have any time to get more clients?

What makes you think you can turn this over to him? He already doesn't have time for this.

Here's what I never understood about partnerships. I've seen people do it because they don't want to start a business by themselves. So they get a partner to split the work in half. But guess what, you also only get half the profit. So you are doing the same amount of work for the same profit anyway.

So, just do it yourself. Hire an employee once you need help. Don't promise him or anyone anything.

BTW, your posts are very difficult to read without any punctuation. It took me a few times to even understand your first post.

Thanks For the advice. i will start this business by myself, then hire as and when need. Sorry about the lack of punctuation I'm on a night shift and shattered so noticed it didn't make much sense in the morning lol. I guess i just keep doubting my self even tho i know how to do it in theory. I just keep doubting my self more closer it gets to starting. is this normal When starting on your own?

 

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[iivalky]

Thanks For the advice. i will start this business by myself, then hire as and when need. Sorry about the lack of punctuation I'm on a night shift and shattered so noticed it didn't make much sense in the morning lol. I guess i just keep doubting my self even tho i know how to do it in theory. I just keep doubting my self more closer it gets to starting. is this normal When starting on your own?

Being nervous while trying anything new is normal, just never doubt yourself, I can't even count how many times I've felt like quitting in my career. No matter how hard it may feel, push through, the reward is well worth it.

 

[Keelham]

Being nervous while trying anything new is normal, just never doubt yourself, I can't even count how many times I've felt like quitting in my career. No matter how hard it may feel, push through, the reward is well worth it.

Yeah your right and although I am nervous i am the type of person that doesn't quit so i will push through mate thank you buddy

 

[iivalky]

Yeah your right and although I am nervous i am the type of person that doesn't quit so i will push through mate thank you buddy

If you're ever in doubt, think of your end goal. Do you want a Ferrari? A mansion? It could be anything that excites you. When you feeling like quitting, think of what you want after success. You can use this as fuel to push through.

 

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[maverick]

Your thought process doesn't make any sense here. Why don't you also work on converting leads right now? Do you have so many clients that you are doing the marketing for that you don't have any time to get more clients?

What makes you think you can turn this over to him? He already doesn't have time for this.

Here's what I never understood about partnerships. I've seen people do it because they don't want to start a business by themselves. So they get a partner to split the work in half. But guess what, you also only get half the profit. So you are doing the same amount of work for the same profit anyway.

So, just do it yourself. Hire an employee once you need help. Don't promise him or anyone anything.

BTW, your posts are very difficult to read without any punctuation. It took me a few times to even understand your first post.

Usually people partner up because they don't want to do a particular essential thing like sales. Cheap way of backing out of a situation or commitment to avoid responsibility.