Business Plan. What to look out for?

[Snoopy_inc]

IC..... things are getting clearer this side

Keep the info coming

[stephanfx]

f not for the divorce, the business partners might still be together. The two men had scraped together enough money to open a small pool supply store, which they built over 20 years into a profitable chain of 65.

But suddenly things got ugly. In the throes of a divorce, one partner decided he needed cash fast. Hoping to sell his half of the company, he found a group of investors who wanted the whole business. The other partner didn't want to sell; he offered to buy his partner out for less than the partner wanted. Instead, the partner who wanted out persuaded a judge to order the partnership dissolved, the assets sold, and his former partner fired for interfering with the takeover.

Read full Here

Searched for business partnership traps, and came across this article, thought it might help.

[Snoopy_inc]

Doubt the laws in this country will allow for that. That sounds usa based imo.

That a nice site though stephanfx

[duncan drennan]

Doubt the laws in this country will allow for that. That sounds usa based imo.

You might be surprised. It things do happen to run awry, then it will all come down to the quality of the partnership agreement that was drawn up in the beginning.

[stephanfx]

I agree that it sounds usa based, but like Duncan said, some aspects might really be applicable in our country, not by the laws maybe, but merely by principles.

[Chatmaster]

Hi Snoopy_inc

I know I am a bit late in this discussion, but the moment someone mentions partners I get a eye irritation. My eye starts blinking uncontrollably and my head starts spinning.

I have owned many businesses in my lifetime. Not one single business I have had with partners worked out. Maybe it is just me or just a poor judge in character. Avoid a partnership and rather walk the road yourself. The closest you can come to a partnership is an investor that invests and further has no say at all, nor the shares to dictate. The best way I can describe a business is that it is a marriage. In a marriage there is one wife and one husband. The moment there is more than one husband; there are issues and problems, not to mention your wife might run away with the other husband!

Avoid a partner seriously. My experience with people coming in on a partnership is that they often manage perception until such time that you have made it a success anyway. Others again dream about the millions they will make but simply do not know how to make it. Dream they can, make they can't!

Make things on your own and rather employ people to do the rest for you. There is no skill or talent in the world that cannot be employed

[Snoopy_inc]

I would agree with doing it on my own but here is the catch... i am currently working for him and making a good living. He is offering me the same salary plus i get to start this venture with him. So i don't have the security problem etc.

[RKS Computer Solutions]

I'd say the only catch is moving from "employed" to "partner" and having all the extra responsibilities and getting the same salary... What's up with that?

Starting a new venture/partnership means if you go in 50/50 then you should share in the profits, not be pulling a salary.

[Snoopy_inc]

No no you don't get.... i work for him on another company... and we will be opening a NEW company where we will be partners. I will work with both while the one is getting up and running and the one i work for him will get salary from.

[stephanfx]

Cool, you are working for him and at the same time starting a company up with him. Here is a question for you though, what happens if the new venture does not pan out, and he blames you? He might not be that type of person, but business is a nasty game. I once heard a saying:"The only ship that does not sail is a partnership". While in many cases, this rings very true, I hope that yours does, for your sake.

On the other hand, it might go extremely well, at what point will you stop working for him and start working with him?

[Dave A]

at what point will you stop working for him and start working with him?

Now that be a most astute question. There is a subtle change in mindset involved - and although subtle, it is something of a leap.

[Snoopy_inc]

I agree stephanfx. This is the problem i am having. At some point i need to change and so does he. The only way i can see this working is if i own a majority share in the new venture.
Hence the reason why im posting here to find out what your opinions are for me to handle this situation?

As far as dave post is concerned i agree that one need to change ones mindset. I have started already with this and its a process by which i need to learn to work on a level playing field.

[duncan drennan]

The only way i can see this working is if i own a majority share in the new venture.

Hmmm....a few questions:

1) What value are each of you bringing to the partnership?
2) Why do you feel that your value is more than his?
3) Is wanting a majority share a control issue, or a value issue?
4) If you are already looking for ways to have control, is this really a good idea in the long term?

[RKS Computer Solutions]

good questions!

[Dave A]

And whilst I know the answers because I've asked the questions before, I must leave that to Snoopy.

What fascinates me in this thread so far is that we have ended up at exactly the same crunch points I did with Snoopy earlier in the 121, albeit by a slightly different road.