Family business!!! AHHHHHH

[FLF82]

Where to start?? I started a company with my sister since I was very young and had no capital to start the business. Its been 5 years and I worked very hard to bring the company to where we are. Currently we have been facing a lot of difficulty because of my sister's managing style. She has just gotten back from a 11 month vacation and still got paid for every week she was away. Anyways if I start listing the problems she has caused i will go off the topic. What I really need is some ideas on how I can get an investor that would buy her out. Our company has a great potential to go from 3.5 million a year to 10 million by next year. We have just invested on a new concept in natural stone that could be implemented in the entire United States through e-commerce.

Question is how are a few ways we can get rid of her. Currently we have more debts than assets. Can chapter 13 reorganization help me get rid of her? Any other ideas?

[chriswick]

You should have it in an agreement that she can't just p*ss off when she feels like it! If I were ever to start a business with someone I would have everything written in black and white.

Know what I mean...?

[FLF82]

We have an operating agreement but she never once wanted to discuss vacation time or such topics that she has been taking advantages.

[chriswick]

Right ok, how much of the business do you own?

[FLF82]

20% and my dad owns 10% and he is on my side.

[bzboy]

So your sister owns the remaining 70%? or is there other parties involved?

[HiTechGadgets]

Thats really hard if she owns 70% unless she would be willing to sell the business. Do you share most of the work into three? I mean you just have to talk to her and discuss the problems you facing i bet she would understand. Goodluck!!

[Dylan Phelan]

We have an operating agreement but she never once wanted to discuss vacation time or such topics that she has been taking advantages.

11 months is not vacation time... that's just bloody ridiculous... taking you for an idiot.

I couldnt agree more about have a formal agreement.

Why not sit her down... discuss how involved she actually wants to be, and then draw up an agreement based on a profit sharing according to responsibilities... as it would seem she isnt that interested. She is fam, so this informal negotiation style may be worth it

[zoobie]

Thats really hard if she owns 70% unless she would be willing to sell the business. Do you share most of the work into three? I mean you just have to talk to her and discuss the problems you facing i bet she would understand. Goodluck!!

Yes. The best thing to do is list all your company's problems and discuss it. By thw way, 11 month vacation seems not a vacation at all. And if you continue runnig the company with her. Have strict rules and policies which applies to all including you owners.

[deep_impression777]

All of the balck and white agreements include the proper settings for vacation time. Maybe you can talk to her of selling a big share fo her business to anothe rif she cannot handle the major responsibilities of it. She can just remain as a shareholder with 10%

[BusinessAdviser]

By her out.

[LiveWise]

I know of two brothers went into business together. One brother (we'll call him Tom) was good in business dealings and fair and honest. The other (we'll call him Ted) was very opposite. Tom found it was cheaper to let the business get close to bankrupt and when Ted decided he wanted out, the properties and assets were worth so little that Tom just told him that if he just left, he could leave with no debts, but also with no assets. The Tom saw that everything would be lost and felt that it was a good deal to leave with no assets/debts. There was plenty of paperwork so that Ted couldn't come back and claim assets when the company was doing well. There were so many businesses and people offended by Ted, that when he left, Tom was able to say that he had left and was able to reclaim their business. The business is better than ever and growing. If Ted had stayed in the company, he would have taken it down into the deep dark pits of despair, debt, and destroyed not only the company, but everybody involved.

I hope this helps.

[artistport]

wow, did she think she was retired those 11 months..lol there's no way anyone can stay off that long and still get a check. The only way is to buy her out but there aren't many other options but you can get a investor on your side to help you buy her out if you need funds

[rosalie123]

negotiate with your sister, she never realised the problems in herself. so what you needed to do is to tell her the problems she has, and the difficulties in your company.