Home – New Forums Starting your journey Straight up and down

  • This topic is empty.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • #996996
    drivingtheblues
    Member
    • Total posts: 6
    Up
    0
    ::

    Hi Fellow Soloists!

    I need some straight up and down advice if possible.

    I need an alternative to someone being a business partner. I have opened my business premises with a dear friend. I have put in all the money and the sweat equity has definitely been equal. She was in a bad a place, so i said to her quit your job and come run the shop with me, i can cover your wages for 12 weeks, and she did. Essentially its “our shop”.

    She has now visited an accountant, and wants her to write up a partnership agreement. Her accountant has told her that the money i have invested does not need to be paid back (its “borrowed from our family trust and a considerable amount), that its just owners investment. I trust her as a friend, but as a business partner i do not.

    However having said that, she has come up with some great ideas but she is missing that fire that you only have when your ass is on the line, and you want to be a success.

    I do realise now what i have done (dont go into business with friends) – so any bright ideas would be greatly appreciated.

    Thanks in advance!

    #1209908
    Rowan@quaotic
    Participant
    • Total posts: 712
    Up
    0
    ::

    You are in a tight ethical spot since she gave up her job on your advice and hope for the future. But keep in mind that a partnership agreement does not have to be totally equal, I am tired and with a heavy cold so I can’t think of the right words to explain but you can research on the internet.

    I would consider researching turning your business into a company as it may have more flexibility and options, especially when it comes to forcing each shareholder/director to live up to the agreement or be kicked out. Either way your contract or agreement must have a good way to dissolve fairly.

    I am sure someone will be around to explain better.

    #1209909
    bb1
    Participant
    • Total posts: 4,485
    Up
    0
    ::
    drivingtheblues, post: 250493, member: 99407 wrote:
    She has now visited an accountant, and wants her to write up a partnership agreement. Her accountant has told her that the money i have invested does not need to be paid back (its “borrowed from our family trust and a considerable amount), that its just owners investment. I trust her as a friend, but as a business partner i do not.
    !

    Her accountant would naturally say that, why would they believe that unless she has told them the wrong stuff, get you own professional advise rather then relying on what her accountant has said

    #1209910
    GregB
    Member
    • Total posts: 5
    Up
    0
    ::

    This retired chartered accountant says keep away from accountants and lawyers. Make them the last on your list. At $300 to $700 an hour, you can sort it out yourself.
    Even a partnership agreement is only as good as the paper it’s written on if at least one partner wants to break it.
    There is NO substitute for the cost of TWO coffees at $4.50 each.
    Sit down and discus it. Identify and discus your individual needs, document them.
    If you can’t do that you should be in business anyway.

Viewing 4 posts - 1 through 4 (of 4 total)
  • You must be logged in to reply to this topic.