Hi there,
This is my first time here. So I hope I have posted in the correct forum.
Since time is money, I will try and explain everything as clearly as possible
in the hope that someone may try to offer their own opinion/experience.
I set up a company (sole trader) to avail of a business grant. The company
is a food company (raw produce). We have been in operation for over 18 months.
Unofficially, I set up the company with another person. We decided to go on a gentleman's
agreement of a 50/50 split. However, very quickly I realized I was doing the lion's share of the work.
I started to put in more money, secure loans in my name and in fact everything is in my name.
The issue I have is that my business partner doesn't realize how much work goes in to everything.
I did all the research, designed the business' infrastructure, sourced the materials, equipment, designed the logo, marketing
etc etc..
We needed to expand so i secured family loans and business loans and since I am a sole trader they are all personally guaranteed.
My business partner cannot commit to the business as they have kids and have to collect them from school etc. Therefore over a given year
I do more sweat equity about 70% more than my partner. All in all I feel it's slowly becoming my business in that I have accepted all the
responsibility. My business partner hasn't got a clue what is involved in running a business and thinks it's easy. I have tried to share
certain responsibilities on the admin side but they were unable to do it. So I had to jump in and take over otherwise it would have been too late.
This is a very, very labor intensive business and I need my business partner in that capacity. We are not taking any money from the business
as of yet but next year my money runs out. I have a far greater need to drive the business forward than my partner does as my business partner's spouse
is working. This is holding the business back in some regards as the risk for my business partner is not there financially...
It came to a head recently when I became exasperated by this issue and got in to an argument about not pulling their weight. That led to all sorts of
back and forth stuff. My business partner accused me of trying to take over the business...I said I didn't but I just capitulated because I know if
they walk I am in dire straits... The business is picking up quickly but all the money is being plowed back in to ensure next year starts at best as possible.
I also should add that I deal with all the customers, doing all the accounting, banking, insurance, purchasing etc...
How should I approach my business partner with a new "deal" in that I feel that they should only get 20% rather than 50% considering what work goes in. My business partner said that if officially they became a full partner childcare would need to be covered as well as other expenses but the business can't afford that right now...
Any suggestions?
Thanks for reading.
Xinchao.
