Business set up

[jgmcl74]

Long story short. I bought a business 50/50 with another girl. Bills, rent etc. are split 50/50. She's been there 15 years, me 1 year. Obviously she has more clients than me. She has a girl working for her part time to do some of her clients, mainly when she's not there but occasionally they work side by side. We don't put money earned into the business. We pay ourselves the money we've earned. Am I being unreasonable in thinking that proportionally this is unfair? I pay 50% but am only earning half or a third what she's earning. Hopefully I'll build up my client base so that we're on an equal footing but in the meantime it feels unfair. Any advice ladies.

 

[lulubella]

You perhaps should have opened your own business as you would receive 100%. At the moment if you only have 50% and not your own customers it seems like your being ripped off. Your business partner does not seem like they want to help you. They are benefiting from your contribution! 50% less to pay..... more money take home.

 

[squidgernetball]

I've never really worked out how this works.

You both have to split the bills 50/50.
If it was the other way around and you were busy, you wouldn't want to share your earnings with her. This is like any new business (new to you). Very little return until you're established and have clients.

The third persons money shouldn't be going to the third person unless she is paying towards the bills. Does she pay a percentage? Is she salaried? Who pays for the products?

Did none of this come up before you joined the business? Have you done it all legally?

If it was the other way around, you wouldn't want to split your money with someone new to the business. As a business owner you have no guarantee of a wage. It sounds like there's an awful lot working with this.

Vic x

 

[jgmcl74]

Thankyou girls.
We both have our own clients so money we earn from them goes directly to each of us. It doesn't go into the business. So that's fair in that we keep what we've earned. The third person is paid by my partner as she treats her clients and then my partner keeps the rest. The client list is very separate and always has been. Some products are bought separately except files, cotton wool, acetone, gel polish.
It was all done legally and these are issues that have since arisen. My partner seems quite happy in that she's busy doing her clients that she's built up over 17 years and has bought the goodwill of another 25 clients making her busy enough to occasionally need help. I on the other hand similarly bought the goodwill of another 25 clients and am slowly building this up.
It's just an odd situation when you're both working under the one roof but for yourself and not to build up a business. Its like we are 2 separate entities working under one roof.

 

[Sawpaw]

I would never run a business in this way ......all money should go into the bank and wages should be paid to you all . Then profit at end of the year can then be split accordingly.