I am in the process of getting a small business/hobby going and am almost finished. Intially from startup I included an inlaw in the process and needless to say things have been "rocky". I have pretty much funded this entire thing, spent untold hours coding, getting artistic renditions for logos, working with suppliers, contracting out work, etc. Since my inlaw is short on funds I said that I understand and just asked that they pursue the advertising aspect, get clients lined up, find product distibuters, etc. Up until this point nothing has been done by them and I am a little frustrated. In fact I was going to let them go, pay them out the little bit they kicked in, with some added money. I talked to them about my concerns here recently and that I understood if they were too busy, etc. but focused on that nothing has been done as per the agreement, by them. I received all kinds of excuses, etc. My spouse pushed me, and as a favor, to give them one last shot (eventhough this was against my better judgment). I sat down with them and told them once again everything I expected from them, and indicated that I expected this to be done within a short time frame. Once again, looking at the records and other items, nothing is getting completed. To cover my ass I need to write up a plan that specifically outlines what they are supposed to do. time frame involved, and the exit option for failure to comply. As of current no formal business paperwork has been filed, and in fact I am hesitant to do so, until I see some initiation on their part. This whole thing is a cluster... I have someone else in mind to partner up with me and I know they would get thinigs done, however nothing can be done until the current situation is resolved. I have worked so hard getting to this point, and expended tons of time, energy and money, and fear that eventhough they may get gung ho, it will only last for the short duration - which concerns me for the long term. Can anyone who has traveled down this path before suggest how I might go about putting together a simple document that outlines what they are supposed to do, time frames involved and penalties? I hat to do the paper thing on "family" but at this point I have no choice. Any help is GREATLY appreciated. Thanks!
Need some pointers/help on small business info
by sinis 12 Replies latest jw friends
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Paralipomenon
Is the business set up as a partnership and if so, is it a 50/50 arrangement?
Otherwise, what do you have documented?
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Chariklo
I think you're finding out why people say "never go into business with family or friends".
If I wewre you, I wouldn't put time and effort into making it work. I'd find a tactful way to step back from this arrangement while you still have a reasonable relationship with your in-law.
At the end of the day, family relationships are worth much more than a business relationship, and it's better to save the first and lose the second than the other way round.
And yes, I do speak from experience!
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sinis
Thanks! As of current no paperwork exists at all. Pretty much all documentation for art work commissioned, contracted services etc are all in my name. You are right about family though.
Chariklo - can you offer some suggestions? I am willing to pay them out what little they have contributed, and a little extra. Everytime I talk with them they get fired up, but that last probably all of 10 minutes and we go back to square one. Could someone offer a suggestion on how to document everything so that I have some physical proof to show that nothing is happening and thus I don't piss off my spouse and her family? Thanks!
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Paralipomenon
One step to handle it would be to actually register a company with you as sole proprietor. Given his poor work ethic, I would say to bring him on as a commission sales with set deliverables. If he misses his targets, then he doesn't get paid. Maybe that would motivate him.
I'm a self employed coder as well, mind me asking what platform you are coding for?
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Chariklo
You don't give us any details of who the in-law is, but I'm wondering if maybe they're feeling a bit overwhelmed by it. Perhaps it seemed to be something they could do easily but then they found they were floundering, and so what looks like negligence mighty actually be that they'd bitten off more than they could chew. Just perhaps.
It sounds as though the financial side has been all your input. Maybe the best approach would be to get together in a friendly family way, and first say whatever nice things are true over such work that they have done. Then ask them how they feel or something...you'll have to judge it according to all the things you know and we don't.
Give them a bit of perspective and explain that you really need A and B done by now. But at the end of the day, if the money input has been all yours, and if the basic idea and most of the organisation has been yours, then you have to make the decision for the sake of the business. Of course, the more input they have already had the more you have to oil the wheels.
As to documenting, well, that's essential, and if they haven't done that and kept proper records then that too is an indicator.
If there's a hard decision to be made, and if it is inevitable, then the sooner the better for the least damage.
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sinis
Para - I like that idea. I'm using php - was using vb but bailed and went with a linux server. Here is one kicker. Technically my day gig does not like anyone having a quote unquote second "job" so I was thinking of having my wife put it in her name, since this did originally start as both our ideas - she makes jewelry on the side and wanted to try and sell them as a hobby she enjoys.
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sinis
I don't think they are overwhelmed per se. I think they have other avenues they are interested in. For example their child met a scout for modeling and the inlaw has been 1000% into this. Recently the scout, who has become their friend, told the inlaw that he should focus on other things - so I'm not really sure what went on there. Now he seems all into this project which has been going on for about a year, but I am done. No products, suppliers, clients, advertising goals/plan, NOTHING - I have been bugging them throughout the entire year to so these things and nothing. Input from the other party has not been that great. In fact I was given a ton of excuses the other day, told they were bored, etc. but NOW they are ready to go... yea... any additional thoughts on how you would go about setting up a physical written plan???
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Paralipomenon
Being able to work without supervision isn't an ability that everyone has. I have had several run ins with people that would love the idea of self employment but when it comes down to sacrificing free time to get it going, it just never gets off the ground.
For a written plan, so long as you outline what you expect from him, by when and highlight what compensation he is entitled to if he meets his end, and conditions for termination.
If you are thinking about the comission sales end of thing, there's many templates available that you could customize.
Here's one I found quickly as a reference:
http://www.biztree.com/Templates/Commission-Sales-Agreement.html
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Hortensia
What are you waiting for? This is hindering your business. Pay them back, say thanks, and then register the business in your own name, as the sole owner. Being too nice can be very costly in a business. Get another sales person pronto. If you feel you must, let these folks be commissioned sales persons and at the end of the year, review their performance. If it isn't up to par, part ways.