Selling my Business

Discussion in 'Growing and Managing a Business' started by cosmolindsay, Apr 2, 2014.

  1. cosmolindsay

    cosmolindsay
    uix_expand uix_collapse
    New Member

    Joined:
    Apr 2, 2014
    Messages:
    1
    Likes Received:
    0
    I'm a part owner in a business that offers on location hair and makeup services for brides and their parties on their wedding day. We do about 40 wedding a year, we have 3 hair stylists, and 1 makeup artist that we book, as well as my partner and I. In 2013 we earned a gross income of 30,000. We already have 20 weddings booked for fall and spring of next year that will gross about 7,500 (we'll have to pay our artists 60% of those earnings). I'm moving and want to sell my portion of the business to my partner, but, she's telling me that it's wrong for me to ask her for money for it and that I'm just leaving her worth more work and more headaches. We never created a buy/ sell agreement when we started the business. What do I do???
     
  2. binpowers

    binpowers
    uix_expand uix_collapse
    New Member

    Joined:
    Mar 20, 2014
    Messages:
    11
    Likes Received:
    0
    You just need to convince your partner. If you sell your portion to her then her profit percent will grow than earlier. She may have more work and more headaches but she could earn more money by owning the entire business. She also introduce new idea into her business and she don't need any approval from anybody. So convince her, and sell your portion with handsome money.
     
  3. DeniseTaylor

    DeniseTaylor
    uix_expand uix_collapse
    Member

    Joined:
    Mar 26, 2010
    Messages:
    198
    Likes Received:
    39
    The situation you described sounds like it could be more personal than business and your partner might have been viewing this as a friendship venture or something. I agree with binpower about convincing your partner, but what about finding candidates to buy your half? If you did line up 1 or 2, you could present that solution to your partner and they might decide they want the whole thing.

    If there is emotion involved, I would take it easy. You don't want it to become a test of wills or anything.

    Just lightly make suggestions until you get to a workable solution. If your partner doesn't want to continue on without you, what about selling it outright and splitting the proceeds?
     
  4. Business Attorney

    Business Attorney
    uix_expand uix_collapse
    Premium Member
    Premium Member

    Joined:
    Mar 22, 2009
    Messages:
    607
    Likes Received:
    289
    Along the lines of what Denise said, if you really want to sell your interest, perhaps one of the stylists would be interested in stepping up and becoming a partner in the business.

    However, I would also caution you that your partner may have a point. In many small businesses, the business is simply a job - and one that often pays less than the owner could make working for someone else. The owner may value the sense of independence that comes with owning his or her own business, but there often is no real financial reward that comes with ownership.

    If your business had gross sales of $30,000 in 2013 and paid 60% to the stylists, I assume you and your partner took home $6,000 each. If the business ran itself and you made $6,000 for doing next to nothing, that $6,000 stream of income would have some value. On the other hand, if you had to work an average of 12 hours a week on the business, you would have made about $9.60 an hour for your actual work. It's not reasonable to expect your partner to pay you for the "privilege" of taking on another 12 hours a week to make barely more than minimum wage (and less than the $10.10 proposed Federal minimum wage). It is also unlikely that you could find someone else willing to pay much, if anything, for the right to work for $9.60 an hour, particularly since there is no guarantee that the owners will make that kind of profit every year.
     
  5. kenzo

    kenzo
    uix_expand uix_collapse
    Member

    Joined:
    Feb 11, 2013
    Messages:
    173
    Likes Received:
    17
    I'm also not so sure that you have right to ask for money. There's nothing your partner would get after you leave. He won't share money with you, but also he won't split the job, so what he should pay you for? You can sell your part to someone else and then he's paying for opportunity of taking part in this business. Otherwise, why should your partner pay you? That's how I see it.
     
  6. amal

    amal
    uix_expand uix_collapse
    Member

    Joined:
    Feb 4, 2013
    Messages:
    89
    Likes Received:
    1
    You have every right too sell you half of the share. But it doesn't mean that you have to sell you half to her. Why Don't you ask other people around if they want to buy your part of the business. Then your partner can work with the other person. Look for someone who has experience in the same field that you guys are.
    The basic problem your partner is having that she would have to control the whole business her self and deal with the customers too.
     
  7. janecristy

    janecristy
    uix_expand uix_collapse
    Member

    Joined:
    Oct 22, 2010
    Messages:
    63
    Likes Received:
    1
    It is a very common issue which is generally seen among partners of a business. If your partner does not convinced by you then it will be good to separate the business through your mutual consideration and understanding so that you can do your own business, use your own ideas, and make it independent and progressive. You both have good experience and establish your business on you own. There will be several benefits of separating the partnership of the business, the main benefit is peace of mind which is necessary for a business person. I have also seen division of a great business among brothers or kins of a family.It is a ongoing process and we should always remained prepared for it. Your partner may demand independence.
     

Share This Page