Help! New partnerships isn't going to plan.

Discussion in 'Employment & HR' started by Tanya lowe, Jun 30, 2019.

  1. Tanya lowe

    Tanya lowe UKBF Newcomer Free Member

    1 0
    Myself and a friend opened a beauty salon just 5 months ago. Unfortunately we dont have any sort of agreement in place everything as always been verbal.
    I'm finding that she isn't doing half of the work I am, I am finding myself doing all the advertising as well as most of the clients! We work on a 50-50 basis. Some weeks we still aren't taking a good wage we are basically putting aside money for rent, electricity etc and what ever is left we are splitting. But I'm finding that I'm working my socks off whilst she's just sat Internet shopping! In work time rather than advertising etc!!
    Also a few week back she had booked in family members and friends and when I came to check the takings I was surprised to see that they had not been charged, so I obviously asked her about this and her response was I didn't think it'd be a problem because I did them myself, I tried to explain that it was still part of my stock that the time she spent doing them for free we could have had paying clients in! She still couldn't see what my problem was! And thought it was acceptable to do this without consulting me.
    She is also offering large discounts (£150)to her friends without consulting me.
    She has gone away for 2 weeks now but worked half of one week and will be working 2 days another week and is still expecting to come off with the same wage as me for both them weeks but she has stated she doesn't expect to be paid for the full week she will be off (which is fine but I don't think she's realised I'm having to work for her half of the bills)
    I feel like I am just there to make money!
    I don't want to leave the salon because I love the location and love the salon and feel like I have put so much more in than her so why should I walk away but at the same time i know I can't carry on like this as its affecting me and my husband.
    Would It be illegal for me to approach and tell her I want to take the takings from the clients I work on and she keeps takings from the clients she does and we both put half to rent, stock etc?
    I'm just at the point where I wish I'd done it myself because I'm doing it all myself anyway and she's getting paid for just sitting and looking pretty!
     
    Posted: Jun 30, 2019 By: Tanya lowe Member since: Jun 30, 2019
    #1
  2. billybob99

    billybob99 UKBF Regular Free Member

    1,163 259
    No.
     
    Posted: Jun 30, 2019 By: billybob99 Member since: Apr 23, 2013
    #2
  3. Mr D

    Mr D UKBF Legend Free Member

    16,608 1,847
    You'll still be doing all the advertising for the business with each of you paying half towards agreed advertising?

    What happens when she doesn't have the money one week for the bills? What happens when, as now, on holiday - not earning and not contributing to the bills?

    It sounds like the partnership has already broken down.
     
    Posted: Jun 30, 2019 By: Mr D Member since: Feb 12, 2017
    #3
  4. MBE2017

    MBE2017 UKBF Ace Free Member

    1,060 278
    Why do people insist on partnerships? Worst idea ever for 95% of people.

    My advice FWIW, you might not realise it yet, but you would be best going your own way, sole trader or company, but be the owner and boss. You need to sit your partner down and either sort things out, highly unlikely IMO, or separate ASAP.
     
    Posted: Jun 30, 2019 By: MBE2017 Member since: Feb 16, 2017
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  5. Mr D

    Mr D UKBF Legend Free Member

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    Just out of interest, whose name is on the salon lease?
     
    Posted: Jun 30, 2019 By: Mr D Member since: Feb 12, 2017
    #5
  6. Clinton

    Clinton UKBF Big Shot Free Member

    4,409 1,656
    Because most people have no clue about business.

    Two problems:

    #1: Business is not a compulsory subject in school ...which is absolutely crazy given the interactions everybody has with businesses and the fact that so many run a business at some point in their lives.

    It's compulsory for kids to learn about imaginary beings in the sky, and about why Darren wants to wear dresses, but not to learn about taxes or pensions or mortgages!

    and

    #2: People don't know that they don't know jack. So instead of paying for proper advice before starting they start first and discover later that they are neck deep in brown stuff.

    And even then they don't realise they need to go seek expert (paid) advice.
     
    Posted: Jun 30, 2019 By: Clinton Member since: Jan 17, 2010
    #6
  7. Chris Ashdown

    Chris Ashdown UKBF Legend Free Member

    10,617 2,149
    actually many schools do have the senior pupils run a active business whilst in school for a year making and selling a product normally to parents, they learn a good understanding of running a company, unfortunately schooling is not liked by many and therefore they grow up a dummies blaming the world on their misfortune and will not accept that obtaining information by reading or googling would be a useful way of learning
     
    Posted: Jul 1, 2019 By: Chris Ashdown Member since: Dec 7, 2003
    #7
  8. Mr D

    Mr D UKBF Legend Free Member

    16,608 1,847
    My school had multiple groups of us senior lads run a business for a time period in school.
    Given a small booklet and basically let loose. The business made a profit - don't think over the years I ever heard of the school businesses ever making a loss, what with captive audience of parents supporting their kids.

    Taught us jack about business. No use whatsoever many years later when I started my first business.
     
    Posted: Jul 1, 2019 By: Mr D Member since: Feb 12, 2017
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  9. Paul Norman

    Paul Norman UKBF Ace Free Member

    2,507 768
    You are experiencing the problems early on in the partnership, which makes it slightly less complex.

    Cutting through all the usual questions, this already does not sound like a partnership that will end well. I would have that ending now.

    That will, of course, leave the question of who takes over the lease. And it is possible that the answer is that both of you will remain potentially liable for that until you can use the break clause to end it - possibly 3, or maybe 5, years in. That means that even if one of you takes on the salon, and runs a successful business there, the landlord could still go after the other for rent if it remains unpaid.

    Undocumented partnerships with nothing in writing. Keeping us busy nodding sagely on these forums since, well, since the forums began.

    But like all relationships pressing on without addressing the issues is not going to make the issues go away.

    No. Your proposal is not illegal. But it won't solve anything, either.
     
    Posted: Jul 1, 2019 By: Paul Norman Member since: Apr 8, 2010
    #9
  10. The Byre

    The Byre UKBF Ace Free Member

    8,950 3,496
    The three mistakes the British make when starting a business are
    • Thinking they know enough.
    • Starting partnerships.
    • Loading themselves with debt.
    In most of Europe, you must be a master tradesman to start a business in most things and a beauty salon is one of them. That means many years of experience as a trained beauty technician following a three-year apprenticeship and several years getting that masters certificate. You will have several years of experience in a business and you will have spent at least one year training in aspects of business studies, such as HR skills, bookkeeping, cash flow, marketing and all the other things that anyone in business must know.

    Nearly all partnerships end in tears because they do not have matching skills. In your case, two beauty techs - hardly a complimentary pair. A great tech and a great sales person would be a match. Two people with the same skill set is nearly always pointless and a destructive mix.

    With little or no idea about how to run a business, in the UK all too often the totally clueless load themselves with debt, thereby making failure a near certainty.

    At fault is the UK educational system. It teaches irrelevant and pointless stuff and fails totally to teach money management, business skills and it totally and completely fails to teach people how to present themselves in public and use media properly.

    So, for those of you out there with children, please teach them all the important things and ignore rubbish like how to multiply out (A+B)(A+B) or how Edward II died or even that the sine of an angle is perpendicular over hypotenuse.

    Sound fair to me - but she will not think so and you will be at fault in one way or another!
     
    Posted: Jul 1, 2019 By: The Byre Member since: Aug 13, 2013
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  11. Newchodge

    Newchodge UKBF Big Shot Free Member

    12,586 3,274
    If she is prepared to let you take over the business, you could hire her a 'chair'. You are responsible for all bills, she keeps the money from her clients and she pays you rent. But you will need a very clearly defined agreement, professionally drawn up.

    Did either of you put moeny in at the beginning?
     
    Posted: Jul 1, 2019 By: Newchodge Member since: Nov 8, 2012
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  12. MY OFFICE IN CHINA

    MY OFFICE IN CHINA UKBF Big Shot Full Member

    4,340 874
    1. Sit down and talk with your partner.

    2. Get legal advice to protect you.

    Or do point 2 first, depending on what you are more comfortable doing.
     
    Posted: Jul 1, 2019 By: MY OFFICE IN CHINA Member since: Nov 16, 2011
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  13. MBE2017

    MBE2017 UKBF Ace Free Member

    1,060 278
    Even with a partner with complimentary skills, partnerships rarely work out for most people, because sooner or later one feels they are working harder, smarter and to better effect than their partner. The resentment starts to build towards an break up.

    OP, better to consider a company in future, designated roles, salaries and profit shares etc. If your co worker ends up internet shopping then start disciplinary procedures etc, take away the profit share, reduce salary etc but to do this you need to be in control.

    Having your own business is all about being in control, of your destiny, money, future etc. I hope you sort things out, but in 50 years I have only seen a handful of partnerships succeed, but thousands fail.
     
    Posted: Jul 1, 2019 By: MBE2017 Member since: Feb 16, 2017
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  14. Chris Ashdown

    Chris Ashdown UKBF Legend Free Member

    10,617 2,149
    That sounds fine following the old traditional training methods, But would appear to hold back the people who understand business studies and have a idea for a new company, so often people spend years training especially at University learning for the sake of learning and having no intention of progressing in that field after qualifying

    So many people have thrown out the rule book and gone alone into a new venture and making a great success of it

    Rather than rules and fixed routes, it may be far better if the colleges ran first class evening classes in Business studies and more use of mentors with experience to assist them with their plans prior to start-up
     
    Posted: Jul 1, 2019 By: Chris Ashdown Member since: Dec 7, 2003
    #14
  15. antropy

    antropy OpenCart Experts Full Member - Verified Business

    3,411 584
    Sorry to be the bearer of bad news but I think it will all end in tears. As mentioned above partnerships on the face of it sound like a good idea but in reality become very complicated and more often than not end badly. Go now whilst you have the chance seeing as it is just a verbal agreement. If you are doing a good job then the clients will follow you, not her. Alex
     
    Posted: Jul 4, 2019 By: antropy Member since: Aug 2, 2010
    #15
  16. Mark T Jones

    Mark T Jones UKBF Big Shot Full Member

    3,457 1,036
    As others have said; you know where this is going, so send it there now.

    One option is to take on the business yourself and offer the partner a chair/space on rent
     
    Posted: Jul 4, 2019 By: Mark T Jones Member since: Nov 4, 2015
    #16
  17. TheoNe

    TheoNe UKBF Regular Full Member

    135 14
    Yea don't waste time, just either set up on your own or buy her out. Maybe offer her 50% of profit for the next 12 months if you don't have the upfront cash, she doesn't need to show up for work and after that you own it. Or something like that, what ever works for both of you. Doesn't need to be hostile.
     
    Posted: Jul 9, 2019 By: TheoNe Member since: Jul 6, 2019
    #17
  18. Strent12

    Strent12 UKBF Contributor Free Member

    34 5
    Start taking legal advice, see who owns the lease and start drawing up a list of clients to take with you.

    If she's not putting in the effort in the business' infancy then its not going to get better from here. Get out now before you sink more time, money and energy into it. Also be prepared to lose a friendship.

    Sorry about that.
     
    Posted: Jul 16, 2019 By: Strent12 Member since: May 15, 2019
    #18