Think I need to seperate from business partner...advice please

[cantwaitanotherminute]

Namechanged as I don't want to be obviously identifiable in RL. Sorry for length of post.

I am setting up as a sole trader in a growing skilled industry where image is very important, not only to attract clients but also to have reputation amongst industry peers.

Last year before I set up I got friendly with another woman on a course & we stayed in touch as she too was considering branching out into the same industry albeit she was at that time looking for employment rather than her own business.

We ended up becoming friends & the idea of setting up business together came up. I said that I didnt want to go into a partnership (didnt give her reasons why) but was happy to share a 'brand'.

The idea was that as we live in neighbouring areas we would have a shared name but each of us would operate using a local name for example I would be 'company name of X town' & she is 'company name of y town'. We thought this would allow us to share marketing time & costs as well as being able to cover each others clients etc in case of illness etc.

Unfortunately in the short time we have been setting this up I have noticed big differences in our priorities re both the time & money. I am putting as much as possible into getting set up & it is frustrating as if I don't do things it doesn't get done.

What pushed me to reconsider our arrangement is that she wont be able to contribute towards certain marketing costs til X date (when I need it now) & also she cant commit to the investment I feel we need to have the quality marketing this industry dictates.

I need this to work more than she does & I need it sooner due to my own financial responsibilities. Apart from that I admit to being very driven & having high work standards. I don't really approve of some of the cost/ corner cutting she is doing behind the scenes with her own clients either.

Again apologies for lengthy post but I need suggestions about how to broach this & preferably keep on friendly terms. I have put it to her that I need to have a marketing order arranged this week & she suggested she might not have funds for that; am thinking of approaching her again when the order is ready to be placed & asking her is she able to commit to this with me as I need to run with it now & unfortunately cannot wait.

I had to pull out of a partnership a few years ago. Essentially I could not conduct the business the way they were and morally couldn't do the things that they were doing. It started out as disagreeing on a few small things but they were symptoms of larger differences.

I am driven and a perfectionist and I rather think you are as well. I suspect that, like me, you'll find it difficult to work with anyone who doesn't give their all and maintain high standards. Problems over marketing arrangements are unlikely to be the only issues in the future.

I had a formal meeting to dissolve our partnership and we agreed to go our own ways. There were few assets and they bought me out for a small sum. To be honest I'd have walked away with nothing so desperate was I to regain some control over my working life.

I would imagine a frank talk along the lines of "I respect you as a professional but I really want to do things differently / keep more control / concentrate on my area / anything else appropriate" would help. As for keeping things friendly, well you can hope for that, but remember she might end up being a competitor and that might make things awkward.

If you think your brand will be marketable why not keep it to yourself and think about franchising it in future?

Good luck!

Thank-you for the sound advice Helenagrace.

Yes I too am a perfectionist at work & I think I will find it hard to work in any sort of partnership. The more I have thought about this the more I realise that I cannot afford to be held back & it is better to separate now before I invest too much.

I did speak to her earlier and tried broaching the subject but she did seem a bit resistant to change; no suprise there really seeing that I seem to be doing most of the organising & am making more cash available to invest. For goodwill I will suggest she keeps the shared brand name & logo font & domain name.

This would be a lot easier if we hadn't become so friendly. Hope she sees that this is a business decision & nothing personal.

Thanks again, it sounds like you definitely made the right choice in your situation.

If you are unhappy with her cost/corner cutting then why do you want to share a brand with her? She will be lowering your good name.
You want to forge ahead but she can't afford it: so buy her out of the right to use the name. You get your credibility back & get moving and she gets cashflow. win/win

How established is the current 'name'? Surely you don't want to give her any cash at all to use the name?

If it's in infancy - can you just drop it and start a new name in your own right?

The current name is not really established as we (I) have only just began promoting. I have invested a little cash on logo design & printing but not enough to lose sleep.

I too was thinking of buying her out of the name westmids for the reasons you mentioned but I think she would object as it was her ex-partner who came up with the name in the first place.

After much thought I decided to let her know that I needed to move forward alone. I suggested that she can have the name & web domain while I keep the photographic image part of the logo to use with my own name. That way I get some continuity & don't have to go right back to the drawing board design wise but she doesn't have to have the expense of new business cards etc which I know she can't afford. I don't think she has a copy of the photo image but seeing as it was my photo & idea in the first place I think it is fair for me to take it with me.

I have a bit of stock printed posters etc but was due to order more anyway so it's no big deal.The people I will need to inform are only the bank etc so it will just be a minor inconvenience.

Unfortunately when I told her she didn't take it well & although she said it was OK she is obviously v annoyed & didn't reply to a non work related text I sent her earlier wishing her well for a function she has this evening. Ah well, things like that just confirm to me that I should never have mixed business with pleasure in the first place!

Thanks again for your replies.