AardvarkBusiness.net - Business Search Engine AardvarkBusiness.net - Business Search Engine



 FAQFAQ   SearchSearch   MemberlistMemberlist   UsergroupsUsergroups   RegisterRegister   ProfileProfile   Log in to check your private messagesLog in to check your private messages   Log inLog in 

     

My Business Partner Wants Out Already

 
 
Post new topic   Reply to topic    AardvarkBusiness.net Forum Index -> Small Businesses Forum
View previous topic :: View next topic  
Author Message
tonyharris73
Temp


Joined: 11 Jul 2008
Posts: 2

5 ants

PostPosted: Sat Jul 12, 2008 3:40 am    Post subject: My Business Partner Wants Out Already Reply with quote

Hi I recently started a company offering messy play sessions for pre-schoolers. My friend and I wanted to go into partnership and on the advice of business link we started a limited company as equal shareholders and both as directors of the company. 3 months down the line my partner wants to leave the business. However she wishes to retain an interest in the business based on the fact it was her original idea.

Unfortunately I have little or no knowledge about running a business and this is a friend I am dealing with so I am really struggling to come up with an answer to how to best sort this. My gut feeling is that she has no rights to retaining a share of the business, it was her idea but my hard work in starting it. The business is currently not making any money so I can't buy her out. right now I'm happy to let her keep a share in the business, as it's worth about a few thousand bucks but how am I going to feel in 10 years time when I sell the business for millions (I can dream can't I!) and have to give money to her despite the fact she's had nothing to do with it for the majority of it's life.

She isnt being akward here and has offered to remain as the company artist and act as my backup in case of illness or just be an ear to listen if I want to run ideas past her. All she's saying is actually I don't want to work I want to be at home with my child all the time and I'd like to get something back for having had the idea in the first place.

Anybody been in a similar position and if so what did you do
Back to top
View user's profile Send private message
johnkleene
Temp


Joined: 12 Jul 2008
Posts: 3

6 ants

PostPosted: Sat Jul 12, 2008 3:46 am    Post subject: Reply with quote

Quote:
she wishes to retain an interest in the business based on the fact it was her original idea.


The above is an interesting quote as it wasn't "her original idea" but "her idea originally" which is very different. The idea isn't original at all and how much financial reward does she really expect for suggesting that you two open a playgroup and subsequently backing out.

As a businessman I would have to suggest that you would be foolish to let your friend continue to have a substantial stake in something that is currently worth nothing but could be worth a substantial amount due solely to your hard work.
_________________
Business Networking | Professional Networking
Back to top
View user's profile Send private message
paul
President
President


Joined: 15 Oct 2002
Posts: 8314
Location: UK
11706 ants

PostPosted: Sat Jul 12, 2008 7:18 pm    Post subject: Reply with quote

Well, lesson number one (which is a little late now)... NEVER work with friends. That's my opinion at least.

Secondly, if you "have little or no knowledge about running a business", then are you even sure you want to continue without your partner?

Finally, if you do want to pursue and need advice/assistance, I'd get some legal advice.
_________________
UK Hotels - UK Selfcatering
Luxury Travel - Lake District Apartment
Back to top
View user's profile Send private message Visit poster's website
billyray
Temp


Joined: 11 Jul 2008
Posts: 3

6 ants

PostPosted: Sun Jul 13, 2008 12:18 pm    Post subject: Reply with quote

whatever you decide you must get it in writing and witnessed
_________________
Business Networking | Professional Networking
Back to top
View user's profile Send private message
jfslenes
Executive
Executive


Joined: 11 Feb 2004
Posts: 152

193 ants

PostPosted: Sat Jun 20, 2009 6:29 pm    Post subject: Define the settlement befor eyour partner! Reply with quote

I suggested similar problem solutions in the past but think it's still a very fair means of setting up a partnership or other business relationship.

One of the terms of such an arrangement should define how it will be split when that almost inevitable split day arrives.

Terms should be: the person wanting out makes an offer of price and terms for the split up. The other person decides who will buy and who will sell.

Problem solved. If your partner wants out, they set the price and tersm and you decide who buys and sells. If they really don't want, they'll make the price and terms so easy that you'll want to acquire. If the want out partner makes a ridiculous price and terms offer, the other partner will sell to the don't wanter.

Sort of along the lines of the old proverb, what's good for the goose is good for the gander.

BTW, mny attorney agrees with Paul. Never with a friend.
_________________
John Slenes
Visit Indian Hills Inn, Taos!
Indian Hills Inn, Taos Plaza
Back to top
View user's profile Send private message Send e-mail
richardbarker
Executive
Executive


Joined: 20 Dec 2006
Posts: 215
Location: Cheshire
276 ants

PostPosted: Tue Dec 22, 2009 3:50 pm    Post subject: Reply with quote

End the business and close the company. Then start again on your own. If your friend is a real friend then she will understand and support you. If she's taking you for a ride then she will complain and get nasty, then you'll know she's not a real friend.

Remember, she's the one who changed her mind and wants out not you. But if she still wants to have something to do with the business then why not hire on an ad-hoc basis as a free lance artist when you need her services.

I also totally agree with Paul....never ever with a friend.
_________________
ENUK Inverted Nail Systems
http://www.easynail.co.uk
Back to top
View user's profile Send private message Send e-mail Visit poster's website
Display posts from previous:   
Post new topic   Reply to topic    AardvarkBusiness.net Forum Index -> Small Businesses Forum All times are GMT + 1 Hour
Page 1 of 1

 
Google
 
Business Forum Sport Forum Travel Forum


Powered by php B B © 2001, 2002 php B B Group

AardvarkBusiness.net Business Search Engine & Directory