Hello all,
My GF and I are pursuing the purchase of an existing and thriving business. She is 30, has a HS diploma and two years experience and workind knowledge with this business, I am 40, have a Master's degree in Exec Management and 20+years of military service. She currently manages the store and performs nearly all the day to day functions and works about 40 hrs a week, but lacks the behind the scenes business knowledge and ownership aspect of the business. That’s where I come in. I believe my education, and diverse military background fills in where she lacks. In a sense we complement each other fairly well in both our relationship and this potential business venture. I have about 10 months before I am able to retire and commit 100% of my time to the business (although I do devote a good amount of time to this venture while at my current place of employment) and feel I am the driving and motivating force behind this/us. I do currently pick up shifts during the week/weekends and (will) take care of ownership issues in the evenings (as will she) once we close and become THE owners. She and I have nearly identical FICOs, are contributing the same Capital for buying the business. We are looking to use a veteran loan program through the SBA and local lender. So in essence, nearly everything that has gone into the business as far as risk is equal. In lieu of physically working at the store as she is, I am conducting the research, attending various necessary meetings, writing the business plan, and doing the 'due diligence' to keep the ball rolling in the right direction; basically doing the 'back office' management stuff while she works her 40 hrs. Luckily my current work schedule affords me to do this.
So during a recent conversation about our prospective partnership, what we both bring to the table and what that's worth in terms of our paying ourselves and partnership percentages (i.e. 50/50 v 70/30), we've come to a bit of a disagreement in what is equitable as to what we both currently contribute. Basically what should the partnership % splits be and based off of what? So what is considered a fair partnership percentage to both of us? What is the value of what each of us contribute to the business? I'm not able to physically work 40 hrs IN THE STORE like her, therefore, she believes she should have a higher salary and percentage of ownership/returns. I on the other hand, disagree because I am still putting forth time/effort into the business, including taking time off of work to meet with various people and conduct preliminary business AND work a few nights a week to assist where needed. She additionally feels that my current income and the fewer amount of physical hours contributed to the store is a factor on what I should receive as a partner. Again, I disagree. If I had 3 small businesses and 50% partnership in each, I shouldn’t take less from one business just because I have an income from the other two completely separate businesses. If I'm wrong, someone please tell me. The question is: is what we both contribute equal or does one hold more weight than the other?
With it being an LLC, I'm still learning but a bit confused as to how we will ultimately pay ourselves back. Do we increase her salary? Do I get a salary? Do we both get end of year bonuses? Is one of us paid in dividends while the other is paid as an employee? Ultimately, I want to create a partnership that won't destroy our personal relationship and is something we BOTH feel is fair and equitable.
Any help or advice is greatly appreciated!
C
My GF and I are pursuing the purchase of an existing and thriving business. She is 30, has a HS diploma and two years experience and workind knowledge with this business, I am 40, have a Master's degree in Exec Management and 20+years of military service. She currently manages the store and performs nearly all the day to day functions and works about 40 hrs a week, but lacks the behind the scenes business knowledge and ownership aspect of the business. That’s where I come in. I believe my education, and diverse military background fills in where she lacks. In a sense we complement each other fairly well in both our relationship and this potential business venture. I have about 10 months before I am able to retire and commit 100% of my time to the business (although I do devote a good amount of time to this venture while at my current place of employment) and feel I am the driving and motivating force behind this/us. I do currently pick up shifts during the week/weekends and (will) take care of ownership issues in the evenings (as will she) once we close and become THE owners. She and I have nearly identical FICOs, are contributing the same Capital for buying the business. We are looking to use a veteran loan program through the SBA and local lender. So in essence, nearly everything that has gone into the business as far as risk is equal. In lieu of physically working at the store as she is, I am conducting the research, attending various necessary meetings, writing the business plan, and doing the 'due diligence' to keep the ball rolling in the right direction; basically doing the 'back office' management stuff while she works her 40 hrs. Luckily my current work schedule affords me to do this.
So during a recent conversation about our prospective partnership, what we both bring to the table and what that's worth in terms of our paying ourselves and partnership percentages (i.e. 50/50 v 70/30), we've come to a bit of a disagreement in what is equitable as to what we both currently contribute. Basically what should the partnership % splits be and based off of what? So what is considered a fair partnership percentage to both of us? What is the value of what each of us contribute to the business? I'm not able to physically work 40 hrs IN THE STORE like her, therefore, she believes she should have a higher salary and percentage of ownership/returns. I on the other hand, disagree because I am still putting forth time/effort into the business, including taking time off of work to meet with various people and conduct preliminary business AND work a few nights a week to assist where needed. She additionally feels that my current income and the fewer amount of physical hours contributed to the store is a factor on what I should receive as a partner. Again, I disagree. If I had 3 small businesses and 50% partnership in each, I shouldn’t take less from one business just because I have an income from the other two completely separate businesses. If I'm wrong, someone please tell me. The question is: is what we both contribute equal or does one hold more weight than the other?
With it being an LLC, I'm still learning but a bit confused as to how we will ultimately pay ourselves back. Do we increase her salary? Do I get a salary? Do we both get end of year bonuses? Is one of us paid in dividends while the other is paid as an employee? Ultimately, I want to create a partnership that won't destroy our personal relationship and is something we BOTH feel is fair and equitable.
Any help or advice is greatly appreciated!
C
via Small-Business-Forum.net http://www.small-business-forum.net/starting-your-business/9429-equitable-partnership-ideas.html
Aucun commentaire:
Enregistrer un commentaire