.
Please note that I am not a legal or financial representative. I am
offering my thoughts on your predicament, based on my business expertise -
nothing more.
The first thing I'd do is to put your financial information down on
paper. You need to show a money trail. You need to itemize every little
thing that both of you have put into the business. After doing it with your
funds, you should do it with your talents -- how much time and what you did
to grow the business and visa versa for your friend. This will help both of
you see where you stand with regards to your business venture.
And please don't discount your friend's marketing -- if she's wearing the
product, she's working, too. Without marketing, there are no sales. Based on
your comments, I don't know if she's doing as much as you are, but marketing
is marketing and it's always a good thing, to help grow a business.
Because you want to keep the friendship in-tact, I think you should
approach your friend without assuming that everything is yours because you
thought of the name and you are the one spending the most money. It sounds
to me like both of you were involved in creating the ideas and business, no
matter who actually did what. In fact, I have been in the situation you are
with a business relationship before.
In my case, my partner and I set the business up and through some
brainstorming sessions, she actually thought of our business name -- except
myself and my husband did all of the leg-work, we filed all of the necessary
paperwork and we handled all of the immediate purchases for the business.
My partner and I created a goal list and a timeline for such, in the
beginning of our business relationship. As time went on, it was quite clear
that I was doing everything that I could to grow the business, and my
partner was falling behind. After a few email communications where I was
trying to motivate her into picking up her slack, she admitted that she'd
bitten off more than she could chew, and she stepped away from the business.
We are still friends ... but, our partnership is now completely owned by
myself and my husband and there are no negative effects of what we tried to
do together.
Approach your friend with a short list of ways for her to join you as the
business continues to grow. Be clear, though, on what each option entails
for you and your friend. Growing a business is no different than growing a
marriage - it takes two and it takes commitment from both parties to do
their part to make it all work out. No matter if you share in a limited
partnership, an LLC or even a corporation, the percentage owned by the
participants of the business can make the difference in who has more of a
piece of the pie than the other.
Wishing you entrepreneurial success!
Tammy Harrison
About the PowerHomeBiz.com Guide:
Tammy Harrison is a successful
home-based working mom for over five years. She holds a degree from Mizzou in
Consumer Economics. Her business focuses on Marketing and Creativity for
Small Businesses For more information, you may contact her at