Business Owners

[kman]

Was wondering if anyone here has started a business with someone they do not know that well? Basically I own space, where if I opened this small business I know it will do good.!!!!However I am going to have to hire someone, or more than likely give them a percentage without knowing to much about them. I like giving a percentage of the income, as they will work harder, but just don't want to get screwed over, as I am not an expert in this field. Anyone have any tips or been down this road?

[UberSteroids]

I sure have been that route!

Well, would that be your partner? Partial business owner or just an employee?

[gixxerboy1]

Yes. I think your better off will someone you dont know that well. Family and friends tend to abuse the relationship.

I would run the persons credit before you even decide. You can get a good idea about them that way,

If you decide to go ahead. Get a good lwayer to draw up a partnership agreement. Be a specific as possible. Also about what happens if you want to buy the person out or if the business folds.

[kman]

I sure have been that route!

Well, would that be your partner? Partial business owner or just an employee?

Partial owner, say 25%.

[kman]

Yes. I think your better off will someone you dont know that well. Family and friends tend to abuse the relationship.

I would run the persons credit before you even decide. You can get a good idea about them that way,

If you decide to go ahead. Get a good lwayer to draw up a partnership agreement. Be a specific as possible. Also about what happens if you want to buy the person out or if the business folds.

Your right about family and friends. I have been down that road before and it can ruin things. However, I always knew I could trust them!!!Its just that they tend to slack off and that's were problems arise. Good advice, and I am definitely going to have a lawyer write everything up.

[UberSteroids]

I see.

Just make sure that you are the one making the calls. Make sure that whoever it will be, wont have a option to bring the business down for you.

It happened to me but guess what... with person I "thought" i knew.

He had too much power, as much as I did and it didn't work out.

Make sure he understands that you are the boss around here and that you can depend on him.

Good luck man.

[kman]

I see.

Just make sure that you are the one making the calls. Make sure that whoever it will be, wont have a option to bring the business down for you.

It happened to me but guess what... with person I "thought" i knew.

He had too much power, as much as I did and it didn't work out.

Make sure he understands that you are the boss around here and that you can depend on him.

Good luck man.

Good point.

[spywizard]

do an llc, that way they don't really have control of the company, and you can still dictate compensation and management control of the company.

But they still have the feeling that they own something

[UberSteroids]

do an llc, that way they don't really have control of the company, and you can still dictate compensation and management control of the company.

But they still have the feeling that they own something

That's the thing! Make sure they don't feel TOO BIG on this... they might try to make some changes or run stuff their way. LLC is definitely what you want.

Make it clear to him, you are the main guy, is is partial owner but you make the calls. You will sure ask him for opinion from time to time and listen to what he says. Just make sure he knows all this.

Don't be Mr. Sweet Pie or people will step all over you no matter what you think.

Get everything on the table the way it is right at the beginning. If someone don't like it, well... you need to know it before you get into anything because when this happens when you are already operating, you will have no time for this plus it might cause big issues.

I am perfect example... Learned it the hard way. I had to shut down my shop because of this so I do speak 100% from experience.

Take care man.

[spywizard]

I see.

Just make sure that you are the one making the calls. Make sure that whoever it will be, wont have a option to bring the business down for you.

It happened to me but guess what... with person I "thought" i knew.

He had too much power, as much as I did and it didn't work out.

Make sure he understands that you are the boss around here and that you can depend on him.

Good luck man.

Same thing here, gave 50% power.. never again.. I am starting one right now where i have the money, and the power, that way if it fails.. i have no one to blame but me..

[spywizard]

LLC is the way to go if you need to "give" part ownership of a company to someone..

but.. a Sub -s corp is the only way to control and keep most of your money, now and in the future..

check the benefits of that corp structure for the best way to keep your money..

[kman]

LLC is the way to go if you need to "give" part ownership of a company to someone..

but.. a Sub -s corp is the only way to control and keep most of your money, now and in the future..

check the benefits of that corp structure for the best way to keep your money..

Thanks spy, you bring up some great points. Lots of things need to happen before this business gets up and running, but that one thing has been on my mind!!! All this info helps a guy like me out, and it's good to hear it from guys like yourself and Uber who have unfortunately gone through with what I was talking about.

[goodcents]

Both of my businesses are incorporated. Partners blow!!!!!!!! Just run your own shlt, don't split nothing, they can get bonuses but that's it. I own a tanning salon and a body jewelry store.(Anthony Roberts is actually wearing my gauges just in case no one believes what they see on the internet)