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Business Partners - Startup

S_choco
Established Member

Business Partners - Startup

My boyfriend and I have decided to start a business together.  He's demanding to be a full partner but has no money, has not cooperated in the setup but tries to be the final decision maker.  In addition, we will need to invest my savings into equipment to start and he is counting on his earnings from the business.  I'm worried that if the relationship doesn't last, I will lose on this investment.  I love him but worry about this business relationship.

 

I want us to be successful on all fronts but I'm not sure if I will be able to recover if he makes poor decisions.

 

Advice?

Message 1 of 18
17 REPLIES 17
BlixkEm24
Established Member

Re: Business Partners - Startup

Honestly I wouldn't feel comfortable of him making any decisions if he isn't putting up anything towards start up but his decision on "Your Business" ... funds 100% coming from your money so everything is your call. Is he bringing anything thing to the table at all? Ideas, connection etc? 

Question to make me reconsider my advice 1. How long have y'all two been together?

2. Do you think he is responsible with finances?

3.Does he not a have a savings?

4.What type of business are you looking to get in to


Side note: In life always remember to  protect yourself first if anything was to happen 

Current Cards:




Message 2 of 18
sccredit
Valued Contributor

Re: Business Partners - Startup

There are red flags everywhere here. I have three hard rules in business. 1. Always negotiate with the truth. 2. No family. 3. No Partnerships. All of these rules came about from hard experiences. Your situation breaks 2 of the 3 and the other needs to be used right now. If he walks in the door with unrealistic expectations you are both going to be in a world of hurt soon enough. Trust me, if you don't deal with it now you'll regret it later. I have been there, done that and paid a very heavy price (see the BK7 in my signature).

Ch 7 Discharge 3/12/2018
Cap One VentureOne $3,500, CapOne Savor $5,300, Kohls $3,000, BBVA $2,500
Infiniti Financial Lease
Goal: New Mortgage 3/2022
Message 3 of 18
Shooting-For-800
Valued Contributor

Re: Business Partners - Startup

If you are going to do it, let him buy his equity over time.

Create an S Corp with 1000 shares of stock.

You put in $51k and the company pays you back at 10% interest.

He puts in $1k per month and earns 1% of the company each payment up to 49k.

The company is split 51/49 in your favor.

etc etc etc

 

 

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Message 4 of 18
S_choco
Established Member

Re: Business Partners - Startup

@BlixkEm24 

1. How long have y'all two been together? less than 2 years

2. Do you think he is responsible with finances? NO

3.Does he not a have a savings? NO

4.What type of business are you looking to get in to - commercial printing and merchandise

Message 5 of 18
S_choco
Established Member

Re: Business Partners - Startup

@sccredit - i agree with your philosophy.  i don't want to experience any harder lessons than necessary.  thank you.

Message 6 of 18
S_choco
Established Member

Re: Business Partners - Startup

@Shooting-For-800 

This sounds perfect!  The idea of partnering makes me uncomfortable with anyone but I am new to this and want to avoid foolish and costly mistakes. We were registering as a LLP but I will change this.  Thank you.

Message 7 of 18
Save-n-Invest
Frequent Contributor

Re: Business Partners - Startup

Don't do it. 

Message 8 of 18
sccredit
Valued Contributor

Re: Business Partners - Startup


@S_choco wrote:

@sccredit - i agree with your philosophy.  i don't want to experience any harder lessons than necessary.  thank you.


Believe me, I did not come to these "rules" without learning them the hard way. Now I advise anyone and everyone to avoid these issues. The risk is just way too high.

Ch 7 Discharge 3/12/2018
Cap One VentureOne $3,500, CapOne Savor $5,300, Kohls $3,000, BBVA $2,500
Infiniti Financial Lease
Goal: New Mortgage 3/2022
Message 9 of 18
sccredit
Valued Contributor

Re: Business Partners - Startup

One last thing to add should you decide to move forward. Do NOT give him access to any company funds, bank acocunts, etc.. When a "partner" has to earn their way they get resentful and do stupid things. Never underestimate the power of greed. Take complete control.

Ch 7 Discharge 3/12/2018
Cap One VentureOne $3,500, CapOne Savor $5,300, Kohls $3,000, BBVA $2,500
Infiniti Financial Lease
Goal: New Mortgage 3/2022
Message 10 of 18
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