Dali748

Member
Joined
Jan 17, 2021
Messages
3
Hi,

I have a business partner in who has brought a deal to the table, unrelated to our current partnership. This deal is basically us taking over part of the business because the current owner of this contract does not want to do this anymore because it’s not a part of their core business.

So for example, let’s say the current owner wants $150K to have me and my business partner take this part of the business/contract over; so we would do a profit share over the next 3 years where we would give $50K each year until we absorb the rights to this new contract and customers.

However, over the next 3 years I’m doing all the work; nurturing leads, making sales, customer support, cutting the POs, collecting payment, working with manufacturer to ship products to end-customer, re-negotiating rates with manufacturer, etc…while my business partner does NOT help with any of this, he just had the connection to this deal. So without me keeping this contract/business running smoothly by doing all the above day in, day out work…then this business would not exist.

It just seems like a lot to commit to with an even 50/50 split when I’m the one that’s going to be doing all the work. If he came into this as investing $100K and then doing a profit share of $50K, then me doing all the work it would seem more fair because then it would only take 1 year to payoff the current owner and have complete ownership of this contract/business.

Thank you!
 

Dali748

Member
Joined
Jan 17, 2021
Messages
3
Haven't brought it up to him yet, since we haven't moved forward with this deal but I'm first just trying to get some feedback from what others think.

I was thinking that, maybe I can propose it as all profits from this will go towards our other business partnership that we have where we're 50/50 but the more I think about that; of course he would agree to that because that business is already setup as 50/50 split.

I'm trying to think what other ways I can structure this so it feels like it's an even deal and feel more incentivized to do this without it feeling like I'm getting taken advantage of. I can easily just say no and then just go back to focusing on the other business partnership we have already.
 

djbaxter

Administrator
Joined
Nov 10, 2016
Messages
2,583
I'm not sure what to say but I do think you should make him aware that you are unhappy with the current situation. If you don't, it's going to sit there festering until the day you do bring it up, jeopardizing your future business relationship(s). And when you do finally bring it up, he would be wholly justified in asking why you didn't bring it up at the time (i.e., now).
 

Dali748

Member
Joined
Jan 17, 2021
Messages
3
Yes, that's very true. I've been thinking that maybe proposing either myself taking an increase in salary for the extra work, or maybe hiring someone who will be able to take this work load over.
 

SmallBizDocs

Member
Joined
Jul 14, 2021
Messages
9
Dali748, you said that the opportunity is unrelated to your current partnership. Have you considered something as simple as a straight "finders fee" with respect to the new opportunity brought to you by this partner?

I have seen quite a few finders fees paid when one party is providing an introduction (or sale qualification), and then hand all work off to the party that has been referred in.
 

VictorLoanz90

Member
Joined
Jan 12, 2022
Messages
20
Yea this is definitely unfair how can he even have the audacity to expect an even split when your responsible for doing 100% of the work and without your leg work the business won’t Generate anything so I think this is a conversation you guys should both be having and see how you guys can renegotiate cause this should be more like a 80/20 honestly .
 
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