Comments on: How To Break Up A Business Partnership http://www.toiletpaperentrepreneur.com/money-equity/how-to-break-up-a-business-partnership/ Mon, 21 May 2012 13:33:00 +0000 hourly 1 By: Thomas http://www.toiletpaperentrepreneur.com/money-equity/how-to-break-up-a-business-partnership/#comment-43468 Thomas Tue, 17 Apr 2012 22:15:00 +0000 http://www.toiletpaperentrepreneur.com/blog/?p=429#comment-43468 Hi Mike, I started a brand at age 23 right when I got out of college. I started making tshirts and sold out of the first line. A few weeks later, a very wealthy family took interest in my idea and offered to invest into my company and turn the tshirts into a real business. They invested $20k into our company in 2010, we launched our brand one year later and for the past year I have been working full-time and working on the apparel company while my partner a stay at home mother, has been working when she choses on our brand, she claimed to have all this experience, when in reality nothing of substance. We have sold a few items, but the business is on it's last leg, barely surviving as an online brand.Ultimately I would like to take my company/idea back into my own hands, and find new partners with young entrepreneurs who share the same drive and passion as myself. I feel trapped because she made the made the intial investment and owns 50% of the company, but has been so inactive the brand can't move forward. It seems to me that she has checkout and since money isnt an issue in their family, I doubt it is a major prority in their lives. Our business is more of a "arts and crafts, PTA" sort of deal for her ... in my mind. Advice please! Thomas Hi Mike,

I started a brand at age 23 right when I got out of college. I started making tshirts and sold out of the first line. A few weeks later, a very wealthy family took interest in my idea and offered to invest into my company and turn the tshirts into a real business. They invested $20k into our company in 2010, we launched our brand one year later and for the past year I have been working full-time and working on the apparel company while my partner a stay at home mother, has been working when she choses on our brand, she claimed to have all this experience, when in reality nothing of substance. We have sold a few items, but the business is on it’s last leg, barely surviving as an online brand.Ultimately I would like to take my company/idea back into my own hands, and find new partners with young entrepreneurs who share the same drive and passion as myself. I feel trapped because she made the made the intial investment and owns 50% of the company, but has been so inactive the brand can’t move forward. It seems to me that she has checkout and since money isnt an issue in their family, I doubt it is a major prority in their lives. Our business is more of a “arts and crafts, PTA” sort of deal for her … in my mind. Advice please!

Thomas

]]> By: Heatherndoray http://www.toiletpaperentrepreneur.com/money-equity/how-to-break-up-a-business-partnership/#comment-43367 Heatherndoray Sat, 24 Mar 2012 02:18:00 +0000 http://www.toiletpaperentrepreneur.com/blog/?p=429#comment-43367 my fiance is in the same situation....small business, llc he is 50/50 with his brother who has stolen from the company and he just wants out but doesnt know how to do it....they outright own one shop, have a mortgage on another, and have a mortgage on a piece of land for investment together...hasnt walked away yet only because he doesn't know how to and if he will have to file bankruptcy or not because his name is attached to everything........any advice would be welcome and very much appreciated! my fiance is in the same situation….small business, llc he is 50/50 with his brother who has stolen from the company and he just wants out but doesnt know how to do it….they outright own one shop, have a mortgage on another, and have a mortgage on a piece of land for investment together…hasnt walked away yet only because he doesn’t know how to and if he will have to file bankruptcy or not because his name is attached to everything……..any advice would be welcome and very much appreciated!

]]> By: Cesar http://www.toiletpaperentrepreneur.com/money-equity/how-to-break-up-a-business-partnership/#comment-43359 Cesar Wed, 21 Mar 2012 05:53:00 +0000 http://www.toiletpaperentrepreneur.com/blog/?p=429#comment-43359 Same situation here...could you please offer some advice? Same situation here…could you please offer some advice?

]]> By: creativeannie http://www.toiletpaperentrepreneur.com/money-equity/how-to-break-up-a-business-partnership/#comment-42981 creativeannie Mon, 26 Dec 2011 11:06:00 +0000 http://www.toiletpaperentrepreneur.com/blog/?p=429#comment-42981 I have been in business with my fiance for nearly 5 years. I met him over 5 years ago. He was in debt, but had a great business already. I financed the start up from my divorce settlement and we lived on the divorce money for a couple of years, rented, paid private school fees, until we could pay ourselves a wage. Now are sales are about $500,000AUD a year, we are profitable, and we've been able to buy a house together. I believe I have put in about 70 - 80% of 'sweat equity', marketing, bookkeeping, filing, e-mailing, etc in the 5 years too. (He would never admit that). He is an alcoholic and I just can't live with him anymore. He's dabbled in a bit of help to stay off it and can at times. But I have two teenage kids. I nearly left him earlier this year. I don't think I can split with him without emotion and stay business partners. I wonder if we can branch off and both get one or two of the arms of the business each. One branch is very new and has the potential to make quite a bit in the future. The other main branch is well established with guaranteed future earnings and thousands of leads but may not be as much. I am worried he might get very nasty, but I am happy to get a lawyer and already saw one earlier this year. After reading all the comments I think we need the business worth valued. I am seeing our accountant next week too. I have been in business with my fiance for nearly 5 years. I met him over 5 years ago. He was in debt, but had a great business already. I financed the start up from my divorce settlement and we lived on the divorce money for a couple of years, rented, paid private school fees, until we could pay ourselves a wage. Now are sales are about $500,000AUD a year, we are profitable, and we’ve been able to buy a house together. I believe I have put in about 70 – 80% of ‘sweat equity’, marketing, bookkeeping, filing, e-mailing, etc in the 5 years too. (He would never admit that).
He is an alcoholic and I just can’t live with him anymore. He’s dabbled in a bit of help to stay off it and can at times. But I have two teenage kids. I nearly left him earlier this year.
I don’t think I can split with him without emotion and stay business partners. I wonder if we can branch off and both get one or two of the arms of the business each. One branch is very new and has the potential to make quite a bit in the future. The other main branch is well established with guaranteed future earnings and thousands of leads but may not be as much. I am worried he might get very nasty, but I am happy to get a lawyer and already saw one earlier this year.
After reading all the comments I think we need the business worth valued. I am seeing our accountant next week too.

]]> By: Angela http://www.toiletpaperentrepreneur.com/money-equity/how-to-break-up-a-business-partnership/#comment-42954 Angela Fri, 16 Dec 2011 17:27:00 +0000 http://www.toiletpaperentrepreneur.com/blog/?p=429#comment-42954 Hi Mike, I have a similar situation as Jack does and I notice that you emailed him privately if I tell you my exact situation can you please offer some advice? Hi Mike, I have a similar situation as Jack does and I notice that you emailed him privately if I tell you my exact situation can you please offer some advice?

]]> By: Anonymous http://www.toiletpaperentrepreneur.com/money-equity/how-to-break-up-a-business-partnership/#comment-42873 Anonymous Mon, 21 Nov 2011 21:22:00 +0000 http://www.toiletpaperentrepreneur.com/blog/?p=429#comment-42873 Probably not legal (unless she has majority OR your operating agreement allows that provision). I hope you have an operating agreement and/or partners agreement. no matter way GET AN ATTORNEY! Probably not legal (unless she has majority OR your operating agreement allows that provision). I hope you have an operating agreement and/or partners agreement. no matter way GET AN ATTORNEY!

]]> By: Ree Ree 86 http://www.toiletpaperentrepreneur.com/money-equity/how-to-break-up-a-business-partnership/#comment-42831 Ree Ree 86 Mon, 14 Nov 2011 13:27:00 +0000 http://www.toiletpaperentrepreneur.com/blog/?p=429#comment-42831 Help, My sister and i started a cleaning business as equal partners, now as a result of a disagreement, she has fired me, is this legal?? does she have to buy me out or is there anything i can do about this Help,
My sister and i started a cleaning business as equal partners, now as a result of a disagreement, she has fired me, is this legal?? does she have to buy me out or is there anything i can do about this

]]> By: Key Things to Avoid as a Business PartnerPremiumShare http://www.toiletpaperentrepreneur.com/money-equity/how-to-break-up-a-business-partnership/#comment-42721 Key Things to Avoid as a Business PartnerPremiumShare Thu, 27 Oct 2011 20:33:39 +0000 http://www.toiletpaperentrepreneur.com/blog/?p=429#comment-42721 [...] Business partnerships can be a viable solution for any start-up’s success. Not all need to end on a bad note as long as you put everything in writing and beware of the partner that says “his hand shake is his word.” For more first-hand advice, read Michael Michalowicz’s, article “How to Break Up a Business Partnership.” [...] [...] Business partnerships can be a viable solution for any start-up’s success. Not all need to end on a bad note as long as you put everything in writing and beware of the partner that says “his hand shake is his word.” For more first-hand advice, read Michael Michalowicz’s, article “How to Break Up a Business Partnership.” [...]

]]> By: Mike Michalowicz http://www.toiletpaperentrepreneur.com/money-equity/how-to-break-up-a-business-partnership/#comment-42167 Mike Michalowicz Thu, 30 Jun 2011 15:04:27 +0000 http://www.toiletpaperentrepreneur.com/blog/?p=429#comment-42167 Jack - I sent you a private email. Jack – I sent you a private email.

]]> By: Jack http://www.toiletpaperentrepreneur.com/money-equity/how-to-break-up-a-business-partnership/#comment-42154 Jack Wed, 29 Jun 2011 22:42:03 +0000 http://www.toiletpaperentrepreneur.com/blog/?p=429#comment-42154 Hi Mike, I love your web site. Thanks. I'm in need of some advice. Any chance? Basically, I co-own a business and now I don't want to be a part of it any more. It's a small business which has inherently broken even. I've changed locations and pursued a new job and gone a new direction in life. My business partner has decided to dissolve the business in my absence. However, he's not making any quick moves to do so...nor is he making moves to get me what I need to sign and un-attach myself from the business. My issues isn't regarding any "buyout," persae. (Let's pretend like zero money has been made and the company is worth nothing.) I just want to wash my hands of it. I don't want to be under liability with a business I have no control over. Any advice? Any direction you could point me in? Huge thanks, -Jack Hi Mike,

I love your web site. Thanks.

I’m in need of some advice. Any chance?

Basically, I co-own a business and now I don’t want to be a part of it any more. It’s a small business which has inherently broken even. I’ve changed locations and pursued a new job and gone a new direction in life. My business partner has decided to dissolve the business in my absence. However, he’s not making any quick moves to do so…nor is he making moves to get me what I need to sign and un-attach myself from the business.

My issues isn’t regarding any “buyout,” persae. (Let’s pretend like zero money has been made and the company is worth nothing.) I just want to wash my hands of it. I don’t want to be under liability with a business I have no control over.

Any advice? Any direction you could point me in?

Huge thanks,

-Jack

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