I went into business with a friend of mine a year ago. At first everything was going alright and we were both contributing equally. As time goes by though, I feel like I am shouldering most of the work. How do I get my partner to put in his share of the work and/or how do I call this whole thing off?
Answer
This is a common problem. Firstly what you should do when starting a business with another person - however friendly is set up clear and DOCUMENTED details of each person's responsibilities, their profit share and financial remuneration. If your friendship means enough to you that you are willing to go into business together then do you want to risk it on a falling out over business.
There are a number of scenarios open to you, but I assume that you want to do one of the following:
1. Remain in the business and increase your partner's contribution.
2. Sell up or close the business.
3. Buy your partner out and continue with the business on your own.
4. Change the contribution that your partner makes and the corresponding reward/salary/profits that they receive.
Firstly you should try and resolve this matter amicably. Ask your partner to meet you for dinner in a quiet restaurant to discuss your business and how you both want to manage it in the future. Your partner is probably aware that they have not been contributing as much as they have in the past. If your partner is not keen or is afraid that your anger will be expressed, then just point out that you value them as a good friend and do not want to lose such a friendship over business problems that you are sure can be sorted out very easily.
Please remember that your friend could be having problems of their own. Their reason for contributing less may be:
1. They don't actually realize that they are not contributing as much as they used.
2. They may have family, personal or financial problems.
3. They may feel that you are taking over more work as you prefer to do so.
4. They may feel that you are edging them out of the business.
5. They may have lost interest in the business.
6. They may not be able to do the work they are assigned and are leaving it rather than look inefficient.
7. They may have different ideas to you as to what the business should be doing now and in the future.
For your meeting, please give them time to prepare as well. They may have some comments about your contribution! Are you sure that you are not pushing your partner our, because that is your "take charge" personality? You should have a rough outline of what you want to both talk about. This should include:
1. Where you both see the business progressing for the next year and then in the near future (say year 2 and 3).
2. Whether you both feel that you want to continue in partnership.
3. What you both would like to do to make this happen.
4. What you both feel are your particular strengths that you can each bring to the business.
5. Do you both feel that the business responsibilities are equally allocated.
6. Are there any suggestions you can both make in order to improve both the business and your respective contributions to it.
7. How you can solve the problems you currently face.
During the meeting, please remember:
1. Your friendship is important to you.
2. Your business is important to both of you.
3. Don't accuse your partner.
4. Listen to their side of the subject.
5. Aim to get some agreed resolution - if only how you are going to dissolve the business.
So in summary, be friendly, look for solutions, listen to both sides.
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