Barbers partnership ending

c.p.w.g.w

Avatar MIA wrote: »

Okay, I'd take the €1,700 on the proviso the 30 mile limit is removed.

If not acceptable I'd go into work and control my own takings, she's surely breached any agreement by unilaterally taking on her own child as a paid employee.

That stuff about not being open with x- amount of distance, isn't legally enforceable in Ireland apparently. But you solicitor should be able to confirm that

martyoo

You can request that the thread is anonymised.

It's hard to know what the best route is to take but for a €1700 offer I would be staying involved in the business as much as possible.

I'd question who the accountant is really working for.

rionn

martyoo wrote: »

You can request that the thread is anonymised.

It's hard to know what the best route is to take but for a €1700 offer I would be staying involved in the business as much as possible.

I'd question who the accountant is really working for.

Thanks Martyoo

I've going to spend spare my time thinking if I can go back and work with her..

rionn

martyoo wrote: »

You can request that the thread is anonymised.

It's hard to know what the best route is to take but for a €1700 offer I would be staying involved in the business as much as possible.

I'd question who the accountant is really working for.

Martyoo how do I request it to be anonymised?
Thanks
Went on full website an requested it ��

Avatar MIA

rionn wrote: »

Work for an employer, I think could be best

Okay, but you're going to have to pay minimum €9.35 plus 10.85% er prsi. You will also need to pay them holidays, possibly sick pay.

You'd then have a minimum wage employee compete against the owner for new businees, would your ex clients rather a newbie or your partner to cut their hair?

Your previous takings are unlikely to be maintained employing a new barber even before you deduct their cost.

martyoo

Think you need to contact a moderator of this forum.

rionn

I think I'm going to go with Martyoo way an go back into work with my own rules:
1 we both pay towards the bills a % but take our own money home.

2 I'm not paying towards her daughter's wage

3 I'm my own boss not been talked down to by her

Thanks MIA I appreciate your input xx

Avatar MIA

rionn wrote: »

I think I'm going to go with Martyoo way an go back into work with my own rules:
1 we both pay towards the bills a % but take our own money home.

2 I'm not paying towards her daughter's wage

3 I'm my own boss not been talked down to by her

Thanks MIA I appreciate your input xx

Yip, agree that's the best way to go.

punisher5112

How has the venture worked previously?

Did you have clients or just share.

Does one do say hair and other beauty etc.

If the relationship hasn't gone sour then you should obviously consider going back to work and start making money.

If she wants rid she may well then try and give you more or could make it very difficult working alongside.

rionn

The business is going good, clients went to whichever barber was free. We offer hot towels, Indian head massage..

The place looks amazing now through my partners hard graft, setting flooring, painting rec.

I'm going to find it hard going back but I think that offer has made my decision..


Really appreciate you guys for taking the time to reply to my worries and concerns!!

Sleeper12

rionn wrote:

This is really helpful when I ask our accountant about this he just says he's done the maths and this is the figure I'm entitled to.

Just because the business is busy doesn't mean that it's worth a lot. You can be busy yet paying almost all as wages. It could be a successful business in that you get a wage & you have a job but the business might not make a profit. When the accountant valued the business he /she only takes in the profit and not the turnover. Your wages isn't profit. It's an expense.

I can't say if the accountant is right or wrong based on the information you provided but they value the business on the profit. What profit, after wages have you made so far in the business?

rionn

Thanks sleeper12!

We decide to put all our income into having the business expense paid up to date and all the starting business expense paid for as soon as the money came in. This is why we did not take a wage till we were open 6 months to pay for all our expenses.

For the past 6 months we have been putting a steady income into the business is that how the accountant came up with this figure? Though what we've put in the bank?

As in a year from now this business would be worth so much more.

martyoo

I would be interested to see how the accountant valued the business but at the same time you might be overvaluing what you are selling.

As in a year from now this business would be worth so much more

Why would it? The revenue coming in is going straight out again in wages and other costs.

My 2 cents:

Partnerships in business outside of a limited company are a nightmare. They almost always go bad.

If this were me I would simply make a counter offer to what you have been offered, and get away from it with as much as you can get. If you've built up a client base open up somewhere else down the road and start again as a sole trader and bring those clients with you. The partner will probably go bust before long anyway and you can go and buy the stuff off them on the cheap when they do!

Your counter offer could include stock, and equipment to help you start afresh.

A couple of grand might be stressful to walk away from, but the day to day pain of staying in partnership with someone when things are already bad is a lot more stressful and will end up ruining your state of mind and can have knock on effects on your health and other relationships.

As far as trusting accountants to value a business at the level you are at, everyone has and will have a different opinion on how to make a valuation. I believe 'getting professional advice' sounds a lot better in theory then in practice in this situation. You are not hiring Ernst and Young and paying them €20k to do a proper valuation. Theres no set method. SME accountants are usually sole traders themselves will little or no actually business experience outside of their specific expertise of P&L and Balance sheets. They file accounts, they don't value businesses, they are not entrepreneurs, investors or management consultants. I would never even consider asking an accountant to value a business. I do not believe they are qualified to do so.

I am more cynical then most though as I didn't get very nice xmas presents this year!!

antoinolachtnai

In the end, if you think it is worth more, then you should buy out your partner, make her relative redundant and send them on their way. You would need to have to have the funds to do this of course.

Staying as a ‘silent partner’ is honestly a waste of everybody’s time.

I don’t like the idea that you are not getting back anything like the value of your initial investment and that is why I say you should push back.

But ultimately the problem may be that the business is not large enough or suitable for this partnership.

I would try to find a proper resolution for this, not just for the sake of the money, but to try and sort out this relationship with your partner.

rionn

Thank you 🤗

rionn

Thanks EL Rifle!

I've been in contact with a solicitor and have an appointment with him on Friday.

Going through things with accountant today 😏 he has told him that we have no stock but we spent 100's on hair colouring products etc and she's also but in new car tires in as her expense..

Thanks for your two cent it is appreciated!!