Replies to This Discussion

Permalink Reply by Monica Grajales on May 1, 2013 at 3:48am

First of all, I would talk to her. Since you guys are 50/50, let her know that she's affecting your livelihood - that simple. Let me ask you this: Do you split 50/50 on everything? Meaning, you do skincare for $100 and give her $50 of what you did? And she does the same?  Then she's taking advantage of you if she's not keeping her end of the deal. 

I would write a contract with the terms you see fit benefiting YOU. After you talk to her, present her with the contract and tell her that you came up with some terms to protect yourself. If the terms involve you NOT paying $50 (example) for YOUR work, so be it.  Get your own tel# and own booking system and separate everything.  You still need to pay your share of the rent, so analyze all your pros and cons and perhaps have a lawyer look at it.  I have found that if I don't have lots of money for expensive services (lawyers can charge a lot of money for something really simple), I would visit a college and try to find a (advanced) student who is willing to help out. Visit your local law school, place an ad and have someone (still with passion to help) help you. Or if you're not on linkedin.com yet, connect with professionals there and try to find a lawyer with whom you can connect and have them assist you.

I had a similar problem once.  I wanted to open my business and at the time I was managing a yoga studio.  The owner of the studio and I became close and she offered a room she had available at a very good deal.  Learning from my past experience, I came up with a contract that benefited me, but it was also fair to protect her as well.  I gave it to her.  She never signed it, but we went over each point in person and she verbally agreed to all the points.  One day, she sent me a nasty email about something specific, and I re-sent her the contract AND reminded her of the day we sat to discuss the contract, that we had specifically talked about that specific point and that she had agreed to it verbally and that I was surprised that it was an issue now.  (Honestly, I wasn't... that's why I wrote the contract) :-)

She had no choice but to accept the terms, but she made my life miserable after that and I ended up moving without any warning. She violated the terms of the contract (verbal agreement is a contract agreement) and I felt I didn't have to abide by my own rule and simply moved out.  It was the BEST decision ever and my business tripled. I am in a better area, and people just LOVE my new place.  And although the distance was significant, I was able to keep a good number of my "old" clients who decided to follow me. 

The point is: sometimes friends or acquaintances come to our lives for a reason.  And some people come and go because they served a purpose in life. The person I mentioned and I never spoke to each other again, and although I am still upset at what she did, I am truly appreciative of what she did in the beginning for me, which was to allow me to start a business in a place that was completely new to (I had just moved to FL and didn't know anyone). 

I've been more philosophical than practical, but I hope I was able to provide some perspective.  I wish you the best.

Permalink Reply by rachel reyes on May 1, 2013 at 1:46pm

Thank you so much Monica. I am afraid to loose her as friend so i am hoping we can move on with out affecting our friendship and business!

Permalink Reply by Crickett Enos on May 1, 2013 at 8:55am

Great questions Monica! 

1. What is the nature of your partnership?  Do you split the expenses 50/50 and each keep what you make as individual techs or do you also split your earnings with each other?

2. Did you sign a partnership agreement prior to starting biz together? 

How you answers these questions will determine the advice:)

Hang in there:)

Permalink Reply by rachel reyes on May 1, 2013 at 1:43pm

Thank you so much for your advice. Yes we split everything we make. so for example if we made 2,000 in a month. we split what ever is left after paying bills.  the hard part right now is how to do retail. Would i keep that in my room separate from our retail area?

Permalink Reply by rachel reyes on May 1, 2013 at 1:44pm

and we didn't sign any agreement i was just all verbal.

Permalink Reply by Carrie Patrick on May 1, 2013 at 2:19pm

For the retail sales, whenever each of you sells a product, could you mark the merchant copy of the receipt so you know which person sold that item and then you can add it all up at the end of the month? Then you will be able to see who sold how much, and divide up the profits the same way.

(Of course, this still depends on her being willing to do it...)

Permalink Reply by Crickett Enos on May 2, 2013 at 9:38am

Rachel,  sad to say, but you have a tough decision to make.   You can either stay with her or go out on your own.  

If you decide to stay together as a partnership you need to create an agreement to continue.  My advice would be to only split the expenses of running the business, rent/utilities/building maintenance/laundry, that sort of thing. 

When it comes to the service and retail revenue,

Your skin care retail and skin care service revenue should go to you

Her Massage retail and massage service revenue should go to her

This is the fairest way to partner just using the partnership as a way to share rent and those types of expenses.  Trying to split service and retail revenue is never going to work, because one person is always going to  put more effort forth than the other and then resentment builds and fighting starts.  

If you just share the space and run your own business you will be much happier.

You need to nip this in the bud now, do not wait any longer. 

Hope this is helpful

Permalink Reply by Monica Grajales on May 2, 2013 at 10:12am

Cricket, you said it perfectly!

Permalink Reply by Juliette Zweig on May 3, 2013 at 6:49am

Hi Rachel,

Business and friendships very often do-not go well together.  The only way to approach this is with total honesty from a neutral standpoint.  I had a similar situation, not with a friend. I found myself becoming all-consumed with the angst and even worse, I did-not want to go into the beautiful space which was created for doing work I love.   What I did was put everything in writing first, and sent that in an email.  Many may think this is an inappropriate approach.  In my case, I knew that had I not done that, words would have been twisted, and forgotten altogether.  If you want a face to face, have ONLY the bullet points of where you believe she is not holding up her end of the arrangement.  Quite often the problem is miscommunication or misunderstanding.  Try not to go to the worst case scenario.  This is a time to be very open minded, and neutral.  I am sure your friends desire is not going out of business.  Try not to be a mind reader.  ASK, politely, and professionally.  Try to think of yourself in her position, how would you want to be addressed, how would you want to be told by your friend. she believes you have not been 150% committed.   AND, do you have a formal agreement in writing?  You can always refer to what both of you agreed to when you were in a much better frame of mind.

In my case, I sent an email thinking that we would at the very least talk about everything.  The aesthetician I was sharing with came in and moved all her equipment out after she read my email.  I was shocked, but relieved at the same time.  Since the rent for the facility was and continues to be reasonable, I decided to go it alone.  There is an enormous amount of work to be done, but for myself, this is the correct path.  As soon as she left, the atmosphere in my entire facility changed. Also, the cloud of negativity I had hanging over my head dissipated.  It's better to get this out into the open sooner, rather than letting it brew to a richer consistency.  Before you do approach your friend, make sure you have conducted a non-biased analysis of your own behavior.  Have you changed in anyway since the partnership was formed?  Be prepared to hear negative feedback about your conduct.  Successful business people should have the ability to be fair, and open to criticism.  Negative feedback is a part of any job, and it must be handled without becoming defensive and combative.  If you know your friend very well, then in your heart you also know who she really is at the core of her being.  Stick with what your gut tells you.  Be prepared for her to defend herself, and try to stay calm.  That's why I suggest getting the points out there in writing first, then talk about what SHE has been experiencing.  "Listen"  ask her for suggestions of how you may help her to get back to the place where she was when the agreement was made and both of you were committed to growing your business.

Best of luck to you.  

Juliette 

Permalink Reply by rachel reyes on May 5, 2013 at 6:42pm

Thank you all!!! Because of your input. I am getting everything in writing and switching the way we have he business structured so that it is fair. :)

Permalink Reply by Ivana Sorrell on May 7, 2013 at 6:27pm

This is why it is so hard to do business with friends... but here you are... now it is business.. don't be afraid of telling her what is on your heart... this is hurting you financially and emotionally - if she is a true friend she will understand her actions... she is either not aware or going through some hardship or possibly taking advantage of you... what ever the reason it is affecting you and true friends and partners speak from the heart and lay it out on the table.. tell her your side... and listen to hers... it can only go one of two ways... you work things out... or you going your separate ways... above all don't be afraid to speak up... you can get all kinds of advise... but until you talk with her.. nothing will happen... good luck and chin up...

Permalink Reply by Monica Grajales on May 10, 2013 at 2:13pm

I found this link with advice on 3 important contracts every small business should have:

http://smallbiztrends.com/2013/05/small-business-make-a-contract.ht...

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