Is This Fair

[Berblackry]

Hi All,

I am looking for some honest opinions regarding a share split between myself and my two business partners.

Our business was founded in 2006 by my two business partners and I was employed to head up the sales of the business. It was agreed from the outset that once we had raised our monthly revenue to £35,000 I would receive a directorship with a 10% share holding in the business.

My role has been considerable more diverse than just the sales guy. here is a list of key facts about my part within the company.

I have gererated over 90% of all revenue to date.
I also manage our second sales person and coach on every deal
I have employed over 80% of all staff
I have expanded our product portfolio by creating all new services that represent over 50% of all revenue

We are now in our 4th year and are on target to hit 1.5 million with a healthy profit margin. I am the person who the market know as the "face of the business". In 4 years I have taken 2 weeks holiday and regurly work 18 hours days. It is also important to point out that the other directors work less hours than me. So I work like I own 100%

I am starting to feel that I have been short changed and need to know if this is a reasonable. I cant stop thinking about the remaining 90%. My feeling is the 20% would be more appropriate.

Any thoughts?

Thanks

 

[Cornish Steve]

It's not a question of what's fair; it's a matter of what was put in writing. What does it say in your written partnership agreement?

 

[Berblackry]

10% in the partnership agreement

Its more about the fact that we have come along way and I am being offered jobs left right and centre as I now extreemly well connected in my market. I have turned these jobs down as i am dedicated to my business. But I just dont want to under sell myself. If that makes sense!

 

[TotallySport]

10% in the partnership agreement

Its more about the fact that we have come along way and I am being offered jobs left right and centre as I now extreemly well connected in my market. I have turned these jobs down as i am dedicated to my business. But I just dont want to under sell myself. If that makes sense!

But it's not your business unless yu own it, and it's not part our business unless you own some shares in it.

You need to dicuss this with the shareholders IMO, and if it doesn't go well, look at the alterantives, including going it alone.

 

[Berblackry]

I do have 10% of the 100 shares. But my point is that the split feels un even

 

[sellickbhoy]

yeah, you just own a stake in the business you bust your balls for.

i'd ask the partners for a bigger share/wage or walk out and take a more lucrative/less stressful offer elsewhere

maybe when you are walkng out the door your partners will realise your real worth

 

[Scott-Copywriter]

Make the shareholders realise how worthwhile you are to the business profits. Then you can negotiate a larger share or sell up and find a job elsewhere.

If they have any business sense whatsoever they will realise how important you are to the business and offer you a larger share.

 

[Cornish Steve]

Sorry, but I don't understand the mentality here. You came to an agreement that you'd be a 10% stakeholder. It sounds like you have been given a 10% stake, consistent with what you agreed. In your opinion, you're worth more than that. Looking at the bigger picture, the other shareholders may or may not agree. For sure, it seems they made a good decision to get you involved, and their offer of a 10% stake proved to be a good incentive.

But now you're getting greedy. Like 95% of us, you believe you're worth more than you're paid. If this is truly the case, then find a company willing to pay that much more. What if you hadn't worked out? Would you be willing to give back the 10% share in the company? You can't put the clock back, but maybe you and the other shareholders should have agreed to 5% for reaching one target, 10% for reaching another, 15% for another, and so on. But you didn't do this, so you're not really in a position to complain. The other shareholders took a risk with you and the risk paid off. You can't change the rules after knowing how the game plays out.

And the grass always looks greener elsewhere, whereas more often than not it isn't. You've worked hard and done well, and a 10% share in a company is a sizable chunk of ownership - something you can be pleased about.

If your ambitions are greater, now might be the time to start your own venture. Then you'll see both sides of the risk equation.

 

[Beachcomber]

Simple choice.

If you are being offered better jobs elsewhere then go to the partners and ask for a larger equity stake in return for the value you add to the business.

Go in with facts and figures along with projected income you expect to generate. Maybe you could negotiate a deal where you are targeted on a certain level of revenue generation over the next 12 months and if you hit target you get an increase in equity.

If they refuse, take one of the many jobs you are being offered and negotiate a good deal from day one.

EDIT: Life ain't fair - it's Darwins law all the way.

 

[Geoff T]

go out on your own, or take another job...either way your "impetus" for the business has gone...if i were one of the other directors reading this, I'd want you gone too! (unless it made me realise you're real worth...)

but either way I'd be pi**ed off you didn't talk you me about it!

 

[Geoff T]

EDIT: Life ain't fair - it's Darwins law all the way.

ps - I thought it was "sod's!" law...you know, "Murphy's" brother!

 

[gogobright]

you can discuss it with your partners,unity is more important .

 

[tony84]

i agree with whats been said.

Discuss your share, see if they agree whether you are worth more than 10% or not. If not then you have options you say, so look elsewhere.

But also as said, you agreed 10% theyve honoured it.

They have honoured what you agreed and asked for. If you ask for more you may well get it. We al have to ask for pay rises now and again.