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  • #1241423
    Shane-o
    Participant
    • Total posts: 2
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    Hi all

    This is my second business venture. My first business was an air-conditioner installation business which I ran by myself.

    This time around I am in a partnership company with another electrician.

    We have been trading for around 18 months now.

    We are getting decent revenue, but my business partner brings his personal financial issues too far into the business. For example, we should be restricting the amount we pay ourselves so we can re-invest into the business to grow. Instead, he has high living expenses and therefore pays himself accordingly.

    I want to hire an electrician, as we have more than enough work to have an electrician working 40-hour weeks. But, we have essentially no retained earnings for a buffer, let alone enough to purchase another car, etc.

    This is extremely frustrating as it feels like we’re just spinning the wheels and working for wages.

    Although, I do not see this as a waste of time as I am learning heaps and getting great experience. I also learnt, choose a business partner wisely. Infact, me personally, I am not built to have a business partner at all!

    Ta

    #1241426
    Paul – FS Concierge
    Keymaster
    • Total posts: 3,488
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    Hi And Welcome to Flying Solo @shane-o It is great to have you!

    Thank you for joining our community and posting.

    That is a really great first post.

    One key element around partnerships is what stage of life are the partners in and what are the financial imperatives both have. If there is strong compatibility, partnerships have more chance of success and vice versa is true too.

    I hope you can find equilibrium with your partner or re-plan in a way that works better for you.

    Cheers
    ~Paul

    #1241458
    Shane-o
    Participant
    • Total posts: 2
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    Hey Paul,

    I totally agree with what you’ve said.

    I have come to terms with the business not growing past what it is currently, and that’s okay. So, I’m just using it to gain experience and give me a decent wage for the meantime while I continue my degree.

    #1243741
    JenEsabell
    Participant
    • Total posts: 17
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    It sounds like you’re in a difficult situation. I understand that you want to grow the business and hire an electrician, but you are limited by your partner’s financial issues. Perhaps you could start by talking to your partner about how you can manage finances to grow the business. Additionally, you could consider taking out a loan to cover the costs of investing in the business or working on ways to generate more income.

    #1243869
    Tony Manto
    Participant
    • Total posts: 581
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    To me, the answer is simple. First of all, it does sound like you are on a path to disaster with your current partner and I would dissolve the partnership as soon as you can!!

    Secondly, most trades are in high demand, and therefore the law of supply and demand kicks in. If the demand is greater than the supply, the prices must go up.

    Set yourself a reasonable wage, with the rest of the profits going into a growth account. Once you have enough, you can hire a staff member.

    Alternatively, if you have enough work for a staff member, you could get a loan and pay it off. A staff member will cost you about $50 per hour and most Air conditioning companies charge $150 per hour.

    Both options can work!

    #1243887
    Paul – FS Concierge
    Keymaster
    • Total posts: 3,488
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    Good advice Tony!

    OP could also look at alternative ways to access and profit from labour whilst keeping within the law.

    ~Cheers

    Paul

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