Sounds like a delaying tactic/ more head in the sand. Would his friend realistically keep the possible job open for another twelve months? What exactly does he do with the kids that has stopped him pushing the business? What help is required from you? Does he mean you do everything else and his only responsibility is his business? Please say at least that you have life insurance to provide a buffer to the kids if anything happens to either of you. With all the effects of COVID and the potential for further lockdowns it would seem crazy for him to try and push things at this time
I don't know if the job would still be available on a year. This is my concern.
We have both been exhausted, but that is normal with young children. He mentioned our youngest, as I wanted another and he didn't, this is why he thinks he is now making headway. Also every time we had another baby my MH nosedived, he had to help more.
I think he wants me to work reception, with phone calls and stuff and do the paperwork.
*Right, and what's the plan for when it doesn't work? What does success look like - as in a tangible numerical figure which provides a meaningful income?
This sounds like he's kicking the can down the road. Unless you set out specific and measurable targets, 12 months will roll round and he'll fob you off again, and again, and again.*
I agree. We don't have a plan. I am wondering if I tell him to up his wage to match the job offer and see where we stand in 6 months?
If you are going to help him you need to know exactly what those overheads are! To walk away with £4 from 60 is just not feasible. When you know all the outgoings you can then streamline them by stepping in maybe you answer phones and take enquiries when you can. He needs to be free to go out and earn the 60 per hour. If you can get you head around income and outgoings profit and loss you can re-assess what needs to stay and what needs to change to make better margins. If he is highly skilled and offers a service that is wanted or needed you could be able to turn it around with fresh eyes and teamwork. Would he be willing to make changes?
I already deal with all of the accounts side of things. He has just bought a new machine which allows him to work on a car and the machine works in the background, so doesn't need his input as such. This of course will generate more income. But looking at his accounts there isn't a lot that can be changed. I am trying to do his accounts as well as work which is proving difficult
Arggghhhhhhhhhhhh
Do you have full access to all the paperwork/finances?
What debt does he have and to whom?
Does it have 2 sets of ramps - if it does then he needs to have 2 cars being worked on by 2 mechanics!!! Rent and rates will be his biggest cost...*
Yes I have full access as I do all of his accounts. He has a loan with the bank (under 10k) and an overdraft on business account (10k) obviously he also has suppliers debts but these are paid every month.
He does have 2 sets of ramps, but one is only accessible when the other is not being used or has a car that is up in the air, as the workshop only has one entrance.
We can't afford to have another mechanic.
*Sounds like the fixed costs are too high to make the business sufficiently profitable for the amount of work he does and that's probably never going to change because he can't do any more work.
Unless he can employ another trained mechanic, but that's a risk as that's another salary to cover. £60 ph sounds typical for a small independent mechanic so probably can't charge more.
Can he negotiate cheaper rent? Could he move to cheaper premises? Find a cheaper parts and consumables supplier? If he cut £10k pa off his rent that's £10k straight in his pocket, although you'd probably be entitled to less in WTC.*
Rent is actually minimal for where we are, and nothing close would be as cheap! Parts he uses a well known "universal" parts supplier, so already has that.