SRS business issues

Discussion in 'On Topic' started by eljefedetonto, Jan 10, 2008.

  1. eljefedetonto

    eljefedetonto OT Supporter

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    So before I went to Denmark last summer, my buddy and I started a small business online. Knowing that I was leaving, the arrangement was that I'd provide the seed money (about 1k) and he'd do the leg work until I got back, and I'd get about 30% of the profits in the meantime. I also did about a month of work before I left to get things rolling.

    Well, there ended up being a few complications while I was out.

    First, his mom got into an accident, and then he got into one a few weeks later. So he had to take out of the profits to get things back in one piece. Extenuating circumstances, no problem.

    Second, after I left we barely made any sales. August and January are peak seasons, so I am understanding about modest sales during the fall. But that was compounded by the fact that he was moved to full-time at his job. He says he's not able to pick up inventory on his days off because the warehouse is closed those days. But then he mentioned not wanting to do anything on his days off where he COULD get to the warehouse. Working at a full-time job 5 days a week, I can understand. But that's fucking shitty for business. Things just seemed to be lagging while I was gone. Shipments are going out late, inventory isn't getting listed.

    What this all means is that I haven't seen a dime since we started, and we've turned a decent profit overall. In fact, I just had to pay out of my own pocket for a new pallet of goods when we should've had enough money in the business to take it out of there. I saw a fuckton of personal expenses on the joint account... and we're not a serious business or anything, but those should've been fronted by my buddy's day job pay, not OUR business account. I just think it's taking advantage of my good nature to not even front me a few bucks a month out of the business while there are personal expenses going on it.

    And the problems don't just go away because I came home. I'm going back to school about an hour and a half away so I'm not going to be able to do that much more, and the complications from his day job aren't just going away.

    I worked my ass off at a factory between classes while I was over there, and now that money's starting to burn. I feel like my back's against the wall again and I've only been back for barely a week. I'm thinking about taking the reins and collecting my 30% from the last 5 months by taking 100% of the profits until I hit that mark. And after that, we still need to figure out what we're going to do what I go back to school.

    Am I out of line here or what? I got ripped off by a couple of guys at the train station in Bulgaria and traveled with a pushy girl. I don't think I've been the same since then. :mamoru:
     
  2. Yuppy

    Yuppy Have a seat right there....

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    you are not running a business it sounds more like amateur hour. your partner has 0 fiscal responsibility about him. unless you keep personal accts separate from biz accts you will be in trouble
     
  3. eljefedetonto

    eljefedetonto OT Supporter

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    all true. it's just supposed to be a way to supplement incomes. I adopted the model from my brother and it works in that respect :dunno:, except he makes a significant salary doing it. but orders have been coming in like crazy after I went and listed the shit from last night :bowdown:

    I'll call my buddy today and let him know my intentions. he's vacationing in FL/visiting his woman for the next week but he should know today:dunno:

    I have no problem separating my business from personal expenses. I'm meticulous about shit like that. I'll buy him out if I have to, except he hasn't put any money into it :coolugh:
     
  4. Yuppy

    Yuppy Have a seat right there....

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    if hes put 0 money into it, he owns nothing
     
  5. MrBrotato

    MrBrotato New Member

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    So...
    You put $1k in, take no profits out, and deal with his shit, then buy more supplies out of your own pocket.
    He puts $0.00 in, is allowed to take out 70%, but takes even more, and doesn't do all of his work.

    What is the business? I'm sure you can find a better partner ... uhh, very easily.
     
  6. Yuppy

    Yuppy Have a seat right there....

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    he doesnt have a business. thats the thing. hes just donating money to his friend. hire him as an employee and run the finances yourself. hes proven hes a bad partner already.
     
  7. eljefedetonto

    eljefedetonto OT Supporter

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    I told him I'm taking control of the operations and collecting the majority of the new profits until I get my cut back (and the starter money, too, now that I think about it), and I'm watching the statements like a hawk. No personal expenses are getting by me. No shipments going out a month after the order came. Crap like that.

    Can't kick him out because he lives within reach of the warehouse, whereas in two weeks I'll be in the middle of the state for school. I'll be home some weekends and breaks to list inventory, and maybe take stuff back to school to list from there. He says he's getting his days off changed so he can bring stuff in, putting money back in that he's taken out, etc.

    I'm a little skeptical, so we'll see what the results are. If things don't shape up, I'll happily take it all for myself.
     
  8. Yuppy

    Yuppy Have a seat right there....

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    drain account, reopen one that gives him no access
     

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