MY BUISNESS PARTNER IS HAVING A BABY

[Steph232]

Hi I am seeking some advice.

My business parter is pregnant. What does this mean for me. We have a 51/49 share split in the business (me 49) we are both equally as important and the business cannot survive with out either one or having someone in place of each.

She is taking maternity leave and is mentioning that she will probably work from home however her position entails mainly client meetings and going out and getting new business + full ongoing sales target management of our internal team.

I want to know how to approach this -

Firstly - Financially ? for both salaries - hers and mine - how would these alter ? Do they in these circumstances? my workload will go up considerably and if we consider taking someone on in her place - there will be their salary on top.

Secondly - How to approach the conversation and what options could work. It is probably wise to mention that my buisness partner fuelled by others opinions at the time - got a lawyer involved and put a figure I had to pay for pre set up time she put in for the business start up - I had to keep my job to pay my way whilst setting up the business and she had a husband who kept her so her argument was she put more "sweat" time in. Was a very difficult start - had to begin paying it - 1 year in business and she came to me and said that she would drop it to 5K instead of 10k as she felt it was unfair.... nice deed at the time but couldn't eradicate it from memory. We are past that now and my value to the business is equal and valuable - we work well and we are growing - however it has always been a difficult thing to forget.

Has anyone been in this position or can anyone give me any advice/ or where I can seek the advice needed?

 

[ethical PR]

1. Look at the UK.gov and ACAS site for information on how statutory maternity works. She will be paid in line with whatever her employment contract and your employment policies say about maternity pay.

2. Just have a conversation about how the business will be managed while she is on maternity leave and what additional resources ie staffing will be needed.

 

[JEREMY HAWKE]

What !
Somebody in the workplace is having a baby !
I hope your not serious !.
I can not believe I am reading this in the modern era !

You adapt you business to change of its key personnel for life changing events Yes you may have to work harder so what ? When you have an event in your life down the line she will be happy to stand on the foot plate as well .
You may need to get some help in for a while .
Do you have an agreement stating the "effort" the directors have to put in. This type of thing really should have been taking into consideration at the point of any agreements

I think you have a bit a problem that shines though a bit in this sermon . You clearly point out you cant get an old skirmish from your memory . Well you should .We should all forget this type of thing 5 minutes later . Not let it become a mental obstacle .

Congratulate her and her husband on their news . Commit to do everything you can to keep things going and building the business building more during you business partners happy time

She is your business partner and anything you say or do now at this point in her life will have an effect in the future . If you value working with her and she is a good person to be fighting the good fight with . Then try to make this period as enjoyable and as comfortable for her .
She will repay you for it . With children she will want the business to make a profit for all concerned .So its really in your best interest to carry it on for a while

While she is away you can get lots of advice on this forum . It looks like you have also done a thing or two so you could also give us some advice !

 

[serendipitybusiness]

How to approach the conversation

Very carefully she has obviously put a lot of hard work in, feels like she built a lot of the business on her own and right now her hormones will likely be going crazy so things she wouldn't normally take personally, she may do now and it could easily blow up. (Before anyone starts shouting at me, I am a woman, in business, who has had a child, who knows lots of other women, in business, who have had children. It doesn't relate to all but does relate to many, it is not sexist it is realistic.)

She obviously values the company, her second baby probably, so I would approach it as a team. Ask her what she thinks, how do you work collectively to allow the business to continue to grow without her usual, very valuable input, that will allow her to rest and enjoy this wonderful time without having to worry about the business.

The reality of it is that you will probably have more work to do and the profits will be hit. However, this is the same for any member of staff that goes on maternity. I remember a client of mine who ran 2 nurseries at one point had 8 members of staff on maternity. It killed her profits for a while but she had to weather the storm financially as that is simply a part of doing business.

Is there anyone already on the team that could step up to replace/help her in the short term? She may need help in the future as well for when little one is off sick, random teacher training days etc. So it may be worth having a second sales person on the team anyway to help cover her when she is away and double the push when she is there. However make sure you emphasis this is someone to help make her life easier, under her guidance, not her replacement.

Bringing up reducing her wages or increasing yours at this point will likely send her straight back to the solicitor so I would try and avoid this if you can.

Good luck

I hope this helps

 

[serendipitybusiness]

Also bear in mind, if this is her first then she proably has no idea what is coming to her. We all think it will be fine, I am smart, I am a hard worker and a determined go getter. I can do everything I could before I had a baby and then reality hits! So she may get offended or refuse to acknowledge how much her life is about to change. She is probably already fearful that you are going to start pushing her out and this will grow when she is away from the business and is going through those first 3 months, no sleep, no rest, no headspace and weird hormones, so tread carefully.

I couldn't even warn my best friend of 18 years (who is an accomplished business woman with her own seperate business) fully of what was coming and I was with her, through all of time that lead upto it, talking about business and life on a weekly basis. I was just there, ready to support her, through the breakdowns when it did happen!

 

[Gecko001]

The issue with regard to the other partner getting the lawyers in at the start of the partnership IS significant despite what others have said. The OP obviously resented that. It might have been irrational to resent starting the partnership on a firm legal basis, but there is obviously a lack of trust along the way somewhere.

The having a baby issue will take its course in accordance with the law and it would be silly of make an issue of it as you will have no friends there. However the lack of trust problem needs to be resolved at some time in my view.

 

[patientlady]

Some great advice here. Good on her for getting the business up and running on the right foot from the start. Just think if she hadn't, where would you be now.
As said above tread lightly, be on her side. You mentioned when you started you needed to work elsewhere to start up, now its her turn
You work well together as mentioned, keep that great relationship going
good luck p/l

 

[carl.atkinson]

Do you have either a shareholders agreement or employment contracts (assuming that you are employed by the business) which deal with the issue of Mat Leave?

 

[Vectis]

...You clearly point out you cant get an old skirmish from your memory . Well you should .We should all forget this type of thing 5 minutes later . Not let it become a mental obstacle .

...

She is your business partner and anything you say or do now at this point in her life will have an effect in the future .

Surely that's contradictory? Or is it ok for her to hold a grudge after the event but not the op?

And, yes, even in this day and age, someone going off on maternity leave for up to a year can have an enormous effect on a small company. It needs to be discussed and planned for - and that means everything from how much she's paid to what, if anything, she will contribute to the company during this time.

Plus, let's face it, it doesn't stop at the end of the maternity leave either. You will need to plan in the future for her not being around quite so much. Most, if not all, mothers like to be around their children when they are growing up and that, possibly, means less time devoted to work.

Yes, congratulate her and celebrate the event, but don't be deceived that it WILL have an effect on your business.

 

[Alan]

we are both equally as important and the business cannot survive with out either one or having someone in place of each

Referring to some other threads - some would not consider that you actually have a business if it can't survive without the owners.

I know that doesn't help.

What will help, is that you will be able to claim some 103% of Statutory Maternity pay. see https://www.gov.uk/recover-statutory-payments/reclaiming

 

[Newchodge]

Assuming the business partner was receiving a salary.

 

[Talay]

Referring to some other threads - some would not consider that you actually have a business if it can't survive without the owners.

I know that doesn't help.

What will help, is that you will be able to claim some 103% of Statutory Maternity pay. see https://www.gov.uk/recover-statutory-payments/reclaiming

By at least one definition, they do not have a true business and with so much baggage already on the carousel, I don't see this one surviving.

The OP has 49% of what ? 49% of not a lot I imagine. If I were they, I would be looking at all options, including nuclear ones, as this is a very unequal arrangement, far far more unequal that 51/49.

 

[Ashley_Price]

Do you have either a shareholders agreement or employment contracts (assuming that you are employed by the business) which deal with the issue of Mat Leave?

Yes, this was my first thought, what is in the agreements and other documents you signed with her when you became a business partner?

 

[Ian J]

Shame that the OP hasn't had the courtesy to acknowledge the many helpful responses here

 

[Paul Norman]

Shame that the OP hasn't had the courtesy to acknowledge the many helpful responses here

Yes, indeed. And if, as is possible, this is indicative of a person's communication skills, the outcome is likely not to be easy.

 

[Ashley_Price]

Shame that the OP hasn't had the courtesy to acknowledge the many helpful responses here

Or - to give them the benefit of the doubt - things might have happened in the business or personal life that has prevented them coming back to reply.

I remember once a similar thread where a "newcomer" had asked a question, lots of people gave great advice but the OP didn't respond. The posts started to slate the OP for not having the politeness to come back and thank people... until they did a month later, and explained they had a sudden, unexpected family bereavement.