Hello all, I'm currently in a business/friendship predicament. I can't decide what to do about my business partner (let him go or not). There are several factors affecting this situation and it's currently driving me nuts! I need a third person perspective and I don't know who to turn to for advice, so any feedback is greatly appreciated. Before I get into the details, one of the biggest concerns for me is not screwing him over b/c he is a friend of mine. If I am to let him go, I want to do it quickly so he can move on with his life and take on a new career path. Ok, so here it goes: I started a web marketing business about a two years ago. I followed my father's footsteps, he runs a successful web marketing company and he's been my mentor through whole process. Although it is a sole proprietorship by the books, I started this company with my college roommate (I am currently 22 years old, he is 24). At the time, I only knew him for 6 months before we started the company. My role was to do the work (web design and other web dev.) and his role was in sales. He's worked in a few sale positions before, so I figured he'd be alright at it. We did this for about a year and really did not make any progress. We barely covered our expenses (rent and internet). We had a few small projects from some people we knew and small businesses around our office. Once again, his job was to get sales. The problem was, he didn't. He didn't want to make cold calls because he had to make too many to actually get through to anybody. He said we needed money for him to market effectively. This is not true. When your a startup, you use guerilla tactics and "fake it til you make it". He had opportunities to go to free business conventions during business hours, both ME and HIM went to them. There were a few after-hours convention and he didn't go because it cut into his "gym" time. In my honest opinion there are two types of people in this world. People who want things and explore every possible opportunity to get what they want and if attainable, they go get it or at least try. And there are people who want things, but make excuses to not follow through because in reality, they don't want to put in the effort in and possibly get nothing out of their effort. Unfortunately, he is the worse of the two of types. I've come to realize, I am an entrepreneur, he's not. This may sound harsh, but sometimes reality is. I re-evaluated our situation and came up with a new business model. My father's company specializes in creating e-commerce sites. They are very good at it and can develop very quickly after doing it for so long. My idea was to partner up with retailers/wholesalers who have established successful operations in niche markets, but have not yet penetrated the power of the internet. In this partnership, we would build a new e-commerce website for them and implement ongoing internet marketing (seo, email marketing). We split the margins 50/50 with retailer who is happy with that b/c we are basically handing them sales that never would have existed without us. Win-win. I contacted a decent size medical company about a 9 months ago and we landed the deal. We made our first partnership. I had to seal the deal b/c I understood how this worked and benefited us both. For the past 6 months, me and my partner have been mining through product data getting it organized for the site. When we were done, my father's company built the site and we will continue market the site online (we split our 50% margin with my father's company). Another win-win. The site went live about 3 months ago and we have already increased their online sales by 120% and total company sales by 8%. Everyone is happy. I'll even admit, he put equal amount of work into the data organization we did for 3 months. We're on pace to make some serious money. In the next month or so, I will have an outsource network lined up that will be doing ongoing marketing for the site now that we have enough money to do so. I will be virtually managing it. Sorry for the amount of detail, but I felt everything was important. The dilemma I'm in right now, is I don't know what to do with my business partner. Honestly, he's not a computer guy and after completely analyzing his ability, the data work is all he can do. And we're done with the data work. I no longer have clients, just partners who practically answer to me b/c they are so happy with the what we're doing. I will be pursuing additional partnership deals, but I can already tell, I will be getting them, which I have no problem doing. When that time comes, there will be data work again, but I'll have the money to pay someone 10-15K to do it for me. I'm trying to find a place for him in this new business model, but I'm not seeing it. This is just not his thing. I work 9 to 5 from the office and then go home and think about work until I go to bed. He goes to the office 9 to 5 and doesn't think about work until the next day. He never contributes ideas, he'd rather talk about girls (which is not always bad, but I'm thinking about business until I go to the bar on Friday night). We've talked about putting together an operations/revenue share agreement a few times, but I just haven't mentioned it b/c this has been on my mind. Besides his lack of business value and ability, he is my friend so I don't want to screw him over. But at the same time, I don't want to be throwing him meaningless work so we both feel he is contributing. Everything is under my name so realistically, I could cut him out tomorrow, but that would be unethical in my book. If I am to let him go, I will give him his 50% profit share for the next year (his involvement in the operations would cease immediately). Again, sorry for the length, but this is torturing me. I'd hate to keep this going for another 3 years and cut him loose then, being 27 years and having no idea what he is to do for a career. Please, any advice is helpful.