Snafu with New Business - npc, your Thoughts & Opinions PLEASE |
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Snafu with New Business - npc, your Thoughts & Opinions PLEASE |
Scott Carlberg |
Mar 22 2004, 02:22 PM
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#1
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Porsche MOTORSPORTS Group: Members Posts: 1,595 Joined: 17-April 03 From: Modesto, Ca Member No.: 580 |
I'd really like to get your opinion on the situation I'm currently going thru.
Here are the details: Matt & Scott were going to start a new business out at the local mall. Matt has some experience with this type/location of business. This new business is/was Matt's idea, although it was Scotts persistence & encourgement that almost got it going. Matt & Scott were going to split the costs 50-50 to get the business started. Currently, Matt has a full-time job, 8-5 Mon-Fri, at which he will become 1/2 owner of in Jan '05, having agreed & signed the paperwork with the one partner of the two current owners who is retiring. Currently, Scott is not working and lives just 5 miles away from where the business would be. Although Matt works just 5 miles away from where the business would be, he lives, with his fiance, about 45 miles away from the business location. Matt has now stated a couple of times that because of his job and where he lives, he does not see himself spending much time out at the mall with the business. Maybe one-3hr closing shift a week, if that. The mall is open 72hrs a week, or 288hrs for a 4-week time period. Figuring a PT person works 25/week, 100 hrs in the month, Scott would then work the remaining hours, 160-188hrs/month. Matt wants to distribute the money in the following way: - 1/3rd to pay the bills; - 1/3rd to Matt & - 1/3rd to Scott However, after putting some numbers down on paper, Scott does NOT think that's a fair deal for him. For example, IF the gross was $10,000 for the month: $3300 - bills (33%) $3350 would go to Matt - for being 1/2 owner AND having worked 3-12hrs for the month; $3350 would also go to Scott - for being 1/2 owner AND having worked 160-180hrs for the month. Scott has suggested a lower Base Pay, and then an agreed upon Hourly amount paid per the number of hours worked. My question, simply is: WHAT DO YOU THINK? Is one scenario more fair than the other? Why, or why not? >>> IF you've gotten this far down on this thread, THANK YOU, your thoughts & opinion are very mich appreciated, as I realize this situation REAlly only matters to one person on this bbb! (IMG:style_emoticons/default/wavey.gif) |
ss6 |
Mar 22 2004, 03:37 PM
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#2
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fun city... Group: Members Posts: 261 Joined: 2-February 03 From: Western Connecticut Member No.: 221 |
Looks like Scott wants / needs the opportunity a lot more than Matt does. Also looks like Matt has an inflated view of his contribution to this thing.
If I were Scott, even as hungry as I might be, I'd walk away from this deal. Scott has "signed papers" to be a half-owner in ANOTHER business as of Jan '05. That's an already-up-to-speed-business compared to the Scott/Matt startup, and it will suck up his time all by itself. Between fiance, up-to-speed-business, and startup, where do you think Matt's priorities are going to lie when he runs out of hours in the day? In addition to paying themselves as employees, perhaps Scott could offer to buy out Matt's interests in the business, ie pay him some kind of fee (out of future profits, if any) for the "idea", some chunk of future profits for access to his expertise, and interest on any money loaned. Alternately, Scott might be in an interesting negotiating position a year down the road when Matt discovers he's in over his head and needs to dial back his work load. Such a move would require a well documented contract between the two and the friendship could go either way in the outcome. |
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