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) |
Toast |
Mar 23 2004, 01:48 PM
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#2
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Not bad for carrying sway bars. Group: Members Posts: 3,380 Joined: 20-January 04 From: Las Vegas Member No.: 1,580 Region Association: Southwest Region |
QUOTE(ldino21 @ Mar 22 2004, 03:01 PM) ..........then both other parties need to hire employees and stay out of the business and just split profits. Thanks! Thats exactly the words I was looking for. The downfall to that is that you have others running and working your business, so you loose some control, and its a little less profitable. But, you do have the opportunity to trade Your time for the profits that your employees are earning for you. (Just hope they are doing it the way you trained them.. (IMG:style_emoticons/default/unsure.gif) ) Somethimes the loss in profit for employee cost is more satisfying than putting in all your time for the extra profits. IMO, I say dont do it. Doesn't sound sucessful. But I am not a business owner, so I am not sure. Good luck. |
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