Business Partnerships

[rich.250]

Just been offered by my business partner to buy my half of the company and take me on on the books as QS. This has stumped me lol

 

[Dcf]

Unless you have clearly defined roles as a partnership ie one does the pricing the other the invoicing purchasing etc etc, you will get conflict cos one partner(you by the sound of it)will feel like he is doing the lions share for half the money.your partner sounds like a right one by the examples of his Pish workmanship.tho as previous posts highlight can he be moulded into sales or the paperwork side of things then it might not be a lost cause.time for a step back and have a think if he can step up.if u don't think he can,time to go it alone before you lose all your clients.best of luck

 

[Sav]

Rich,
I was in a partnership for about 6 months with an old friend of mine who is a gas engineer.
Turns out he was bleeding the company dry by constantly drawing money to pay gambling debts and loan shark money !!
Clients kept calling and complaining that boilers fitted were leaking, he would not attend his appointments, even my customers who I introduced to him for the gas side were complaining to me.
I apologised to all my customers, took my name off the company, via solicitors and accountants and it felt like a weight was lifted from me.
I contacted all my customers and explained what had happened, they fortunately were understanding and continue to use me.
I personally lost about £6k all in all, but at least I can carry on and rebuild myself, whereby he is being reported to Gas Safe, owes money, but still boasts that the gas side is busier than ever !!!!
Sav

 

[a12jpm]

Just been offered by my business partner to buy my half of the company and take me on on the books as QS. This has stumped me lol

But the problem of poor workmanship/lack of knowledge will still be there with you carrying the can as the QS. Start again with your apprentice and build a reputation that people can trust, that's the long term solution IMHO.

 

[rich.250]

But the problem of poor workmanship/lack of knowledge will still be there with you carrying the can as the QS. Start again with your apprentice and build a reputation that people can trust, that's the long term solution IMHO.

Good point mate, although he does sound keen.
I will see how it goes and all his intentions before I make a decision.
Obviously I will keep you posted.

Thanks to all for all the advice.

 

[brman]

But the problem of poor workmanship/lack of knowledge will still be there with you carrying the can as the QS. Start again with your apprentice and build a reputation that people can trust, that's the long term solution IMHO.

That was my first reaction. However if he is bought out I assume he is less likely to loose financially compared to trying to get out and if (as sounds likely) his partner continues to damage his reputation then he can always resign and start up on his own. Could be another way of skinning the cat....

 

[JD6400]

That was my first reaction. However if he is bought out I assume he is less likely to loose financially compared to trying to get out and if (as sounds likely) his partner continues to damage his reputation then he can always resign and start up on his own. Could be another way of skinning the cat....

Might not be quite so easy to jack and start up on his own , as if his solicitor is worth a ---- he will tie him right up on poaching his own customers back !

 

[rich.250]

That's my concern. Partnerships aren't good. I know realise. Lol.

My current stream of thought is let him buy me out.
Money into savings and see how it goes as an employee. If it goes wrong I have some money to start up on my own again.

Sound like a sensible idea??

 

[Bluesknight]

I certainly wouldn't get involved in this company. How do you know he will pay your income tax, NI and get the right insurance cover.

The fact that you are an employee doesn't stop the tax people making you liable for the companies debts. They are within their rights to challenge your employee status. This is a common problem and the outcome is never good.

If it is a 50/50 partnership there should be no problem with a straight split and a fesh start.

 

[Welchyboy]

Why would you now want to be employed by someone who sounds like a total numpty??

With him in charge now it's only gonna go one way, and with you as QS it's gonna be you who's ultimately responsible for signing off the work

 

[rich.250]

Right Guys....

Update!!

After numerous talks i have come to an outcome, I have sold my half of the business to the other partner!
He has almost taken a back seat off the tools and even seems keen to improve the standard of his work proves that your better off voicing problems.
I am now employed as QS and me and the apprentice will do the work
He is doing the paperwork, quotes, getting work etc. With talk of taking on another spark as we have a lot on.....
Seems like a perfect solution, and a well welcomed outcome, so much stress off my shoulders lol

Thanks again for all your advice

 

[Dave 85]

I'd never ever enter into a business partnership. One guy is always going to be pulling more weight than the other. I've seen so many fail.

 

[rich.250]

Add this to the list then

 

[alarm man]

Right Guys....

Update!!

After numerous talks i have come to an outcome, I have sold my half of the business to the other partner!
He has almost taken a back seat off the tools and even seems keen to improve the standard of his work proves that your better off voicing problems.
I am now employed as QS and me and the apprentice will do the work
He is doing the paperwork, quotes, getting work etc. With talk of taking on another spark as we have a lot on.....
Seems like a perfect solution, and a well welcomed outcome, so much stress off my shoulders lol

Thanks again for all your advice

the other spark will replace you very soon,as said you and the apprentice should go it alone..

 

[sparky-s-w]

seems to me that he's on an even better screw now, he takes majority profit whilst you do all the work.
id start moonlighting now if i were you, get your own buisness up and running whilst working for him.