to ditch my business partner?

[PenguinBollard]

We met abroad whilst working for the same company in a rather niche job role - I'd rather not disclose it because it'll probably be too revealing, so let's say Clown.

I'd been thinking of setting up a Clown recruitment agency for a while, and the thought had occurred to her too and decided shortly after meeting that we should do it together.

I'd been putting off setting up because I was worried about handling clients (I'm not a sales-type really) and she seemed an ideal partner because of her extreme confidence and charisma. All good.

I immediately started on branding, built a website, built a database blah blah but she kept on putting it off, next month, next month, next month so we didn't end up actually opening until 12 months later.

I left my job at the same time as the business started, and began working FT on it. She said she would hand in her notice.

This was back in May - she is still working FT as a Clown. This means 10-12 hours a day, 6 days a week (it's hard work Clowning) that she is at work and not available to contact.

In the meantime, I'm working 12 hours a day Mon-Sat, only 6 or 7 on Sundays - running the agency.

The original plan was that she would be bringing in the Clients - but she has failed to bring in any, all of the clients have found us through the marketing that I've been doing online.

After a couple of months, I got sick of doing all the work so we agreed that she would take on Clown interviews - a client would want a clown, I'd find the candidates, shortlist them, background check them etc etc - and she would conduct the registration interviews - about 20 mins of time but a relief to me, partly because I hate doing them.

Except, I've got to arrange these interviews - around her work schedule, around the clown's current work schedule - and then act as her PA to remind her to take the calls.

She repeatedly is late making the calls, and has actually forgotten entirely more than 6 times - last week a candidate was left waiting 2 hours whilst I was desperately trying to get ahold of BP to make the call.
One time, I arranged 5 calls only to have her ask me to rearrange them 30 mins beforehand because she wanted to go to a party.

She has told me the business is her life and she's constantly promoting it - but we never get new clients from her. She bought in 1 client, once, right at the beginning who was a mutual friend.

Obviously whilst she's working FT she can't work properly for the business anyway, but I don't really see what she can add to the business even if she leaves - she doesn't have the technical knowledge to do any of the online stuff, including marketing, and I don't trust her to do admin properly.
The business makes A LOT more than she makes working as a Clown anyway.
At the moment its all split 50/50 so she's making a fortune doing very little. (I worked out she basically gets about £3,000 for every 20 minute interview the other day)
In fact, a full time Clown Recruitment Consultant would be paid a lot less, and get a lot more done.

But this business was meant to be our baby, and I feel horrifically guilty at the idea of dumping her. I know that she won't understand the reasons why even if I explained, and would make a massive fuss about how I betrayed her - which I guess leaving her would be a betrayal?

I know that business is cold, and harsh etc - but I'm not and I don't want to become that person.

I think you need to sit down and lay out the facts. Let her see that she does not devote her all to this project and show her how much she is making doing very little. Show her how you’re making the same amount doing so much more. Then you come up with a plan. Off the top of my head this could be a) splitting the money appropriately according to percentage of time devoted to project eg 20/80 b) give her a period of time eg 6 weeks to sort out her priorities and deliver her A game to this business or she’s out c) tell her that her heart just isn’t in it and she’s out.

I know this conversation with her is probably up there with wanting to set your hair on fire (I HATE confrontation myself) but for your own mental health it needs to happen. And you just have to reiterate that it’s purely professional and not personal. It sounds like your business has the potential for great momentum so you must put it first. You said you see it as your baby, well imagine it was a real baby and someone was hindering your baby’s progress by being emotionally and physically unavailable, you’d remove that person from your baby’s life pretty damn quick. I think you need to do the same here so that your business can thrive. Good luck 💐

I don't understand why you split the money so they're getting paid so much for so little.
My XH and ex FIL drew different dividends based on the amount of work put in each month. Do you not do this?

Definitely ditch her!

Get rid of her, it's clearly never going to work.

You can then:
a) get some business training to help you toughen up. If you run your own business you need a thick skin.
and
b) decide whether you want to employ someone to do the interview bit she currently does (which you said you didn't like) or whether you'll do it yourself.

The agreement was verbal and very straight forward - split profit 50/50.

It's worth mentioning that the business is not in the UK so the set up is different.

In short, we both own half of the registered business. HOWEVER, the brand has a different name to the business - it's the invoices that are in the registered business name. We've had an absolute arse of a time setting up a business bank account, because in the country we're set up in they make it really complicated - so all invoices have been billed by me personally and paid to me - I then pay the relevant corporation taxes, any expenses and then send her half the rest.

In effect, I own the brand (website, social media, email address etc etc all in my name).

We live in separate countries, so sadly no spa day coming up for us!

We have two active clients at the moment, both coming to an end very soon. I'm tempted to contact her soon to say that we will complete these clients together, and then I'm moving on by myself.

Could you give her an ultimatum. Draw up all the work you've done and possibly equate it to the profit you made. Have bullet points of key points you want to make. Possibly have a plan of if she was full time in the company what profit you could be making. Then make it clear ' you need to support this business full time and this is how the workload will be shared by such a date (what ever her notice period for her job is). If this is not happening unfortunately we need to dissolve our partnership'.
Then it is clear what will happen and she can't accuse you of being underhand etc? Or has it got to a point where you just don't want to be in business with her?

Maybe she's struggling with her side of the business and would be relieved to have a get out of jail free card?

We have two active clients at the moment, both coming to an end very soon. I'm tempted to contact her soon to say that we will complete these clients together, and then I'm moving on by myself.

Eminently reasonable. And if you're living in separate countries, surely that makes it easier?

One of the things I've wanted to do for a while is employ an experienced Recruitment Consultant.
They would get a set salary, plus a commission, and I'm CONVINCED they'd bring in more business than she does (and possibly more than I'm able to) because they know that side of the industry.

Neither of us had experience in recruitment - the agency was built on knowing the Clown industry very well from many a year Clownin' and, from my side, a good buisness head.
This isn't my first business and I'm very good with computer things, so combining that skill with the insider knowledge of Clownin', I managed to learn as we went the ins and outs of recruiting. Which, by the way, is horrifically hard - I had no idea how much work it takes to recruit!!!

You're not being at all unfair to her. She's made a nice little profit out of doing fuck all since the business started, so if anything the boot's on the other foot. You can just say to her that it simply doesn't seem to be working, citing things like the interview problems and the lack of referrals if she asks for reasons, and wish her all the best pursuing her own career. You could if necessary soften the blow by suggesting that if she goes on her own you would where appropriate make referrals to her, e.g. if you're overbooked.

Or has it got to a point where you just don't want to be in business with her?

It sort of has reached this point. I've discussed with her over and over about her input, and it doesn't seem to sink in.
I actually reached a point about a month ago when I wrote her an email that said "Are you even serious about this business? Because if you aren't, I can do it by myself - I basically do it by myself anyway"

And she brushed it off.
Made slightly harder by the fact English isn't her 1st language.

You’re paying her for nothing. You don’t want to upset her but how is it fair on you?
Her heart isn’t in it or she’d have quit her job and gone FT clown recruiting.

I hate clowns

Someone needed to say it.

But yes, dissolve this partnership. Is it possible for your to pay yourself for hours actually worked on the projects you've landed and then split the profits after that's been taken out? Make sure you do a bit of PR/recruiting/marketing work on the side 'for free' to counter your partner pointing out that she's done XXX hours by drinking in a bar and chatting with people for example

Not sure if that's something you can do?

Tell her due to the way the business is set up you will be paying yourself more wages.
After that any profit will be paid on client numbers.
If you sign up 8 and she signs 2, you get 80% of profit.

From her perspective, why would she bother to quit her job and put more in when she has managed to do neither and still come out with equal profit? I would bill her your salary and take it out of the last of the money from those 2 clients. I.e. don't give her any more money.

I'd give her a higher percentage than the work she's actually done if it meant an amicable split

In other news, this is the first time I've seen a 100% vote on AIBU!

You're going to have to be harsh. Make the decision for her. Draw up the paperwork and send it to her, dissolving the partnership.

To be honest, I don't think she whats to do it either. Why hasn't she left her job? And what does her current circus think about this side job she's got going (presumably recruiting clowns for rival circuses)?

wants to do it...

I'm going to message her today I think.

I'm going to try and avoid any hedging - no "I think I want to split" because I strongly suspect she will negotiate regardless, so I imagine I'll be on a stronger foot if I seem decisive.

I feel like a terrible human being!
She's a genuinely lovely woman, really supportive and very much everyone's champion.

There is a reason Mr. Tumble does all the work himself.
YANBU.

There is a reason Mr. Tumble does all the work himself.
I laughed at this so hard I scared the dog

I feel like a terrible human being!

Truly terrible human beings rarely feel that way.

She's a genuinely lovely woman, really supportive and very much everyone's champion.

She doesn't sound like it from what you've described on here. Be prepared to find her less "genuinely lovely" when she realises her gravy train is about to pull out of the station.

Good luck!

YANBU but, just to clarify, you have been paying yourself an appropriate salary/hourly rate haven't you? Your time is a cost to the business too. That needs to be deducted before you start sharing "profits". You haven't just been splitting any money the business makes 50:50?

Also, profits don't have to be taken out of the company straightaway. The company can retain the money or reinvest it in the business. You haven't said exactly what the set up is, where you are, but, for example, if you were a limited company in the UK and you both had shares, just because the company has made a profit, you don't have to declare dividends and pay out those profits.

If you do continue working with her or go into business with someone else, you might want to look more closely into the business structure to make sure that you retain control and how best to prevent this sort of scenario in the future.

She is working and getting paid.
So you should be paid too before any profits.

One of the best pieces of advice I've ever had is - never put off a long term benefit to avoid short term awkwardness!

You can say it in a professional way - that the current workload and split isn't sustainable for you so you need to revisit the agreement.

You can say it isn't personal, it's a case of what hours you can do balancing with the financial reward. It simply isn't sustainable at the moment.

If she doesn't want a friendly relationship afterwards then at least you aren't running yourself into the ground for the sake of not making someone else upset. Especially when they are being unreasonable.