Fresh Threads: lacking patience with employees, and selling shares

  1. Ray Newman

    Ray Newman UKBF Newcomer Staff Member

    11 1
    7 |

    Hi UKBFers,

    Welcome to Fresh Threads, our weekly roundup of the best comments and advice from the forums. 

    Here are my top picks from this week.

    1. I'm running out of patience with my employees

    Jason S

    I’ve just had enough of my employees, they have made and make my life a living hell. I have brought in new people made changes and tried to get the best working culture but still I just end up with two types of people: nice, obedient workers who make so many mistakes, and those who are disruptive to our culture and go against any changes I make. How do I deal with them or find the right people? And what's more important, sales or staff morale?

    Billybob99: Its nothing to do with management style. You could be a world-class manager like Jose [Mourinho], but if your team down tools and don't play for you or the cause, you can't do nothing. Once you give the impression they can get away with something, they will be all over you.

    Mr D: Stop looking for staff by the method you have been doing and try something different. Either its how you train and manage staff or its the staff you are recruiting.

    WaveJumper: You need to be totally clear on the type of person you require from qualifications, experience, and are they going to ‘fit in’. The biggest mistake people make is they interview half-a-dozen people they have shortlisted, and then go ahead and employ the best of bunch when in fact none of them fitted the bill. To keep employing the wrong people, as you’re finding out ,is costing you dearly in time and money. Step back and have another cool hard look at your recruitment processes.

    ecommerce84: Being too nice could be your problem. The other issue is that whenever staff are involved you will always have problems. The higher the team, the more problems you will have. It is unavoidable.

    2. Selling shares in a limited company

    Nicholas Boyce

    I'm looking to buy 50% of the shares in an existing limited company from the current owner, who is the sole director. He has 50 x ordinary shares and I am wanting to buy 25 x from him for £70,000. My understanding is that it's a straightforward process. Do we also need to complete a PSC01 'Person of Significant Control' for Companies House? I expect it's up to him to declare the sum I paid him to HMRC, apply for entrepreneurs' relief etc as part of his personal tax return...? Have I missed anything, please?

    Noah: Yes, PSC notification required. More importantly, does the shareholders' ageement include mechanisms to resolve disagreements? A simple 50/50 split assures trouble otherwise, assuming you are also taking a role as a director. If you DON'T take a role as director, you may find your investment does not work out how you think it should.

    Clinton: The mechanics are fairly simple and as you describe, but are you buying shares in a business without taking proper legal advice first? It's OK if it's a small amount, eg £25 for 25 shares, but if you're paying any significant amount get a proper share purchase agreement drawn up. It'll cost some money for a decent lawyer.

    NickGrogan: 50/50 businesses rarely succeed. If you disagree, there is no way to resolve or move forward. With two directors, there is no way to resolve issues. You are essentially paying £70,000 for a job.

    3. What qualities does a retailer look for in a supplier or wholesaler?

    Digimem

    Other than price, what qualities does a retailer look for in a supplier or wholesaler? Things like ease of ordering, credit they offer, delivery time etc?

    Mr D: Quality of goods, price. minimum order (some suppliers start at £3,000, one I found started at £20,000). Ideally being able to see the goods before ordering - online, in a catalogue or in person. Delivery time and credit do not enter into it for me. Some orders can be seven months before delivery, eg Christmas stuff ordered in January then delivered July and August..

    MY OFFICE IN CHINA: Credit should be a thing of the past. It's price first, quality second (sadly). The rest depends on the customer, supplier and product with regards to stock levels, warranty, returns, ability to brand, select your own packaging, exclusively, add amendments, change materials, factory audit, factory socially compliant, quick communication.

    Pish_Pash: I'm suprised nobody has mentioned trustworthiness, which is quite important if your supplier isn't in the UK and you're wiring £100,000 overseas.

    4. Personal debt is affecting business

    RainbowM

    I have a limited company trading for two years. It is growing slowly, but I have racked up a lot of personal debt from loans and credit cards, which I used to set it up and in quiet times. This along with a change in my personal circumstances means I cannot take enough money from the business to pay for everything. Does anyone have any experience of this situation? I don't know where to go for advice or what my options are.

    intheTRADE: Your options will be depend on a number of factors, firstly, depending on the nature of the business. Do you provide products or services which are just a one of cost to the consumer, or are they long-term contracts, recurring monthly payments etc? Once that information is clear then it will be easier to give advice of your options.

    WaveJumper: Take a real good look at your business - what's doing well, whats not, cutting costs etc. Obviously get out there and bring some more business in if you can. It's not easy but if you can obviously this would be great. However, be realistic don't carry on running a business if it's insolvent (don't dig yourself a bigger hole) in which case you need to get some proper advice.

    LisaThomas: You need to take personal insolvency advice. An IVA might be suitable for you as it would allow you to continue being a director of the limited company. That is assuming the limited company is solvent and worth continuing with. You may also need to take advice from an IP about the company's options.

    That's all for this week – have a great run into the weekend!

    #0
  2. Furqan721

    Furqan721 UKBF Contributor Free Member

    55 4
    Thank You for sharing this stuff!
     
    Posted: May 16, 2018 By: Furqan721 Member since: Feb 26, 2018
    #2
    Chris The Dropshipper likes this.
  3. Salifuj

    Salifuj UKBF Newcomer Free Member

    24 1
    After all said and done, not all businesses or websites need to worry about it. Most small businesses will not be affected right?
     
    Posted: May 30, 2018 By: Salifuj Member since: Oct 7, 2016
    #5
  4. ÜZEYİR

    ÜZEYİR UKBF Newcomer Free Member

    0 0
    teşekkür ederim
     
    Posted: Jan 25, 2019 By: ÜZEYİR Member since: Jan 25, 2019
    #7
  5. Brian Preston

    Brian Preston Banned Free Member

    0 0
    this is Inflation
     
    Posted: Mar 27, 2019 By: Brian Preston Member since: Mar 26, 2019
    #8