SarahRose Posted July 7, 2010 Posted July 7, 2010 My husband wants to start abusiness and he said that one of his workmates wants to be a partner so my husband says he wants me to be in the business too. We are buying the equipment and making the investment. I my husband I didn't think it was good idea to let this guy be part of the business. He said we need someone who can weld and i said we can just pay him per job like an employee. My husband keeps coming back to wanting thisguy as a partner. I don't know if he promised the guy but I am thinking he has. Nothing is in writing as we are still writing the business plan. I've run abusiness before and he hasn't and I don't think he understands the potential legal and financial cosewuences of choosing the right business partner. Is there anything else I can say to him?
norajane Posted July 7, 2010 Posted July 7, 2010 A business partner usually contributes financially to open the business. Is this guy doing that? Does your husband understand that you will have to split your profits with this guy instead of just paying him for the work he does? Since you understand the legal and financial considerations and your husband does not, why haven't you explained those to your husband, in great detail?
xxoo Posted July 7, 2010 Posted July 7, 2010 It sounds like you need to be asking questions at this point. Why does he want this person as a partner? Why is he opposed to having him as an employee? Has he promised the partnership? You need to understand his point of view clearly to have a productive discussion.
Author SarahRose Posted July 7, 2010 Author Posted July 7, 2010 He said the reason is that he has skills we don't which is true but I said we can hire him as an employee. I think what happened is him and the guy were discussing this at work and my husband most likely promised him without doing any research on it or asking me about it. No this guy hasn't contributed a dime. I've never met him.
califnan Posted July 7, 2010 Posted July 7, 2010 Good posts above. my comment: NO NO NO NO NO NO NO NO NO Don't make me any crazier than I already am .... NO NO NO
califnan Posted July 7, 2010 Posted July 7, 2010 Alright .. There will be No Partnership Agreement .. OK? Your husband lost it because he thinks this man's skills will make the business - and maybe he thought that giving him partnership would be the only way of securing the man's promise to leave his present employment and coming with him.. Your husband should not mention the partnership again.. And just ask the man if he is willing to come with him as an employee, as there is a problem with the partnership.. If you want me to tell you my war stories, I will ..
Author SarahRose Posted July 7, 2010 Author Posted July 7, 2010 That is probably what it is. This guys skills are not unique. We can hire welders. I have told him repeatedly we can hire him as an employee or part time on a per job that requires his skills but my husband isn't listening.
califnan Posted July 7, 2010 Posted July 7, 2010 Maybe your husband thinks that just starting out - it would be a financial advantage to share profits than to pay the man a salary? The man is not putting any money into the business and should not be a partner ..
Iconoclast Posted July 7, 2010 Posted July 7, 2010 Okay, so this guy has critical skills and an established relationship with your husband. Could be big boost to business if he's got a good rep. So, I bet he's not real interested in running a business, but likes the idea of independence and $$$. So perhaps, make an agreeement where he shares in the profits, but has no say in how the business is run. He can have a dream of retiring early and raking in money for doing nothing in the future, IF, he helps the business grow now.
Art_Critic Posted July 7, 2010 Posted July 7, 2010 Honestly is sounds like this plan is already in the tank.. Business partnerships don't start out this way and don't have this much mistrust already injected by any involved. Since you don't value the guys abilities do be a partner but your husband does then there is already a power struggle even in your own partnership with your husband.. not good.. Partners should always compliment each other and not be after each others jobs or ownership.. that is the only way they last.. What they excel at the other won't and vise versa. What they miss the other has.. Is your husband an excellent welder with connections ? Does he possess the same skills this guy has ? What about your husband would make him a good partner.. What about the other guy would make him a good partner.. What about you would make you a good partner ? Those are the types of questions you should be asking yourselves.. What is being brought to the table by each ? Just because you can hire the guys labor doesn't mean he wouldn't be a useful resource as a partner or be a good partner. Nobody works harder that when it is their own business...
califnan Posted July 7, 2010 Posted July 7, 2010 The Potential Mess: My husband was a third generation printer .. The company was founded by his grandmother - handed to his father - handed down to my H and his brother .. My H and his brother didn't get along, so my H left him and started his own printing company.. My husband asked Alex - an employee of the company that he and his brother had together - if Alex wanted to come with him .. My brother-in-law didn't seem to mind. About 5 yrs later my husband also hired Mike, his cousin's son.. Shortly after H told me that upon his death he wanted Mike to have the business with our sons (who were already in our printing company).. A few years later my husband divorced me and put the building into his new wife's name - as well as his.. Mike started having personal problems and quit and then killed himself.. I lost my home in the divorce - because there was fraud. So before my husband died he gave me the business and the building.. to save his new wife's house, which had been purchased with our community funds.. So 6 yrs later, I told Alex that I was tired of his slothfulness and reading the paper and magazines instead of watching the press, and clocking in before he was ready to work .. so he quit. Somehow, the business and bldg was saved for the Rightful Heirs .. our loyal devoted hardworking sons - who have been working the business for 24 years.
califnan Posted July 7, 2010 Posted July 7, 2010 Okay, so this guy has critical skills and an established relationship with your husband. Could be big boost to business if he's got a good rep. So, I bet he's not real interested in running a business, but likes the idea of independence and $$$. So perhaps, make an agreeement where he shares in the profits, but has no say in how the business is run. He can have a dream of retiring early and raking in money for doing nothing in the future, IF, he helps the business grow now. ----------------- No critical skills - OP says they can get other welders.. Why should he share in profits - if bringing no money in to start the business - and no critical skills..
Author SarahRose Posted July 7, 2010 Author Posted July 7, 2010 They aren't critical skills and only about 10% of the work would need a welder and none at all at first. My husband can do the rest of the type of work. I bring my business and marketing skills. We don't need this other guy.
Art_Critic Posted July 7, 2010 Posted July 7, 2010 The Potential Mess: My husband was a third generation printer .. The company was founded by his grandmother - handed to his father - handed down to my H and his brother .. My H and his brother didn't get along, so my H left him and started his own printing company.. My husband asked Alex - an employee of the company that he and his brother had together - if Alex wanted to come with him .. My brother-in-law didn't seem to mind. About 5 yrs later my husband also hired Mike, his cousin's son.. Shortly after H told me that upon his death he wanted Mike to have the business with our sons (who were already in our printing company).. A few years later my husband divorced me and put the building into his new wife's name - as well as his.. Mike started having personal problems and quit and then killed himself.. I lost my home in the divorce - because there was fraud. So before my husband died he gave me the business and the building.. to save his new wife's house, which had been purchased with our community funds.. So 6 yrs later, I told Alex that I was tired of his slothfulness and reading the paper and magazines instead of watching the press, and clocking in before he was ready to work .. so he quit. Somehow, the business and bldg was saved for the Rightful Heirs .. our loyal devoted hardworking sons - who have been working the business for 24 years. I'm having trouble figuring out where the issue was with partners.. It sounds like maybe the problem was with your husband and not having any buy/sell agreements in place for his stock or company and not having a third company own the property that he owns and rent back to the other company. Employees quit.. owners you have to buy them out...
Art_Critic Posted July 7, 2010 Posted July 7, 2010 They aren't critical skills and only about 10% of the work would need a welder and none at all at first. My husband can do the rest of the type of work. I bring my business and marketing skills. We don't need this other guy. Can you work with your husband ? and this one is critical.. Can he work with you ? Family business's aren't easy to run and even harder with spouses and even harder when the spouses expect more from the other than they are willing to give..
califnan Posted July 7, 2010 Posted July 7, 2010 I'm having trouble figuring out where the issue was with partners.. It sounds like maybe the problem was with your husband and not having any buy/sell agreements in place for his stock or company and not having a third company own the property that he owns and rent back to the other company. Employees quit.. owners you have to buy them out... ---------------- I called it a potential mess.. He could have made Alex a partner - but fortuneatly didn't .. Had he made him a partner, Alex would have had to be bought out - before I took over. He wanted to make Mike a partner before Mike quit .. another near miss. Had there not been fraud in the divorce - his new wife would be the owner of the building and maybe the business - and my sons would probably have been out.. The business was a sole proprietor, not corporation.
califnan Posted July 7, 2010 Posted July 7, 2010 Can you work with your husband ? and this one is critical.. Can he work with you ? Family business's aren't easy to run and even harder with spouses and even harder when the spouses expect more from the other than they are willing to give.. ---------------- They will have to learn to work together .. She has said that she has marketing skills to bring to the business .. and probably would be able to do bookkeeping and other secretarial.. I did the bookkeeping, counter, secretarial .. better than having an employee, believe me ..
Author SarahRose Posted July 7, 2010 Author Posted July 7, 2010 Years ago when I was young trusting and naive I had a signing telegram business. I had a few friends who wanted to do it and I said I would pay them $25 per gig which was a lot of money 30 years ago. I created and ran the ads and paid for them and paid for the phone and it was in my home. Usually they went there by themselves n they collected the money. For some reason when they saw how much I was charging they thought they should be getting half of the fee I told them they are a contractor for me not a business partner. No matter how many time I tried to explain that I was paying all the expenses n getting alll the gigs they thought I should give them half. So they got ticked off and quit. Simple situation but an example of a negative experience.
Art_Critic Posted July 7, 2010 Posted July 7, 2010 and my sons would probably have been out.. But today 20 some years later your sons are partners ?
Art_Critic Posted July 7, 2010 Posted July 7, 2010 Simple situation but an example of a negative experience. The easiest way to to make sure all your bases are covered is to do a business plan... Do you have one ? If you don't need a partner then why have one forced into the business plan, that surely would make things tumble quickly.. but if you need one or your husband wants one then you already have an issue... Why does your husband think or want a business partner besides you ?..
Author SarahRose Posted July 7, 2010 Author Posted July 7, 2010 I am writing the business plan now. The idea of starting a business was for this guy to print some cards to pass out and my husband buys all the materials and equipment and then they do the jobs together. No formal agreement on anything and no business plan. AC I have said multiple times that this guy can weld. He has no money or connections. Only 10% of the jobs would need welding. My husband seems to think we have to have a welder. I also think he is just trying to be nice to this guy We have a powered workshop on our property to do it. My husband is nice and trusting like I used to be. I know better now.
threebyfate Posted July 7, 2010 Posted July 7, 2010 SarahRose, I'm not hearing a lot of respect for your husband. Rather than guessing at why it's so important this man be made a partner, ask him without grilling him.
threebyfate Posted July 7, 2010 Posted July 7, 2010 To expand on my previous post, your husband brought to you an idea where he wanted you to be a partner in this idea, as well as bringing in another partner. From what I've read, you've taken his idea and taken or want to take complete control of it. While I encourage everyone to have a viable business plan and create a business using pragmatic concepts and methods, aren't you forgetting that he's also your husband and partner? Should he not have a say in the business? Should there not be negotiation and potentially compromise? I can only share with you my experiences with men. Part of being a man is pride.
carhill Posted July 7, 2010 Posted July 7, 2010 OP, unless there's something unique about this potential partner which brings value into the business, I'd suggest investigating subcontracting the welding/fabrication out to him as appropriate, or bidding it out. I do this kind of work for a living (for about 30 years now) and am a subcontract vendor for numerous businesses. IME, employees are expensive and partners must be chosen exceedingly carefully. All I needed was one divorce to teach me about the latter I agree with TBF that you should obtain concrete facts and perspectives as to the advantages/costs of bringing this potential partner on-board. Then, if you and your H are indeed partners in this new venture (you don't have to be just because you're married), make a decision as a *team*. Good luck
Author SarahRose Posted July 7, 2010 Author Posted July 7, 2010 To expand on my previous post, your husband brought to you an idea where he wanted you to be a partner in this idea, as well as bringing in another partner. From what I've read, you've taken his idea and taken or want to take complete control of it. While I encourage everyone to have a viable business plan and create a business using pragmatic concepts and methods, aren't you forgetting that he's also your husband and partner? Should he not have a say in the business? Should there not be negotiation and potentially compromise? I can only share with you my experiences with men. Part of being a man is pride. I think it is rather insulting to men to think they are so delicate that they should never be questioned. This is a serious thing which could mean financial ruin for us and I won't sugarcoat it. Then again you are assuming I'm grilling him about it which I am not. Lots of women pussyfoot around and go along with half baked schemes and end up in dire straights because of love.
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