[kmi]

hi,

just signed in. hope anyone can give some pointers on how to deal with this dilemna..


i recently resigned from my work to start a small business. start-up capital infused was (supposedly) 50-50 between my father and me.

the business is registered as a single proprietorship under my name.

from the start, i handled operations, accounting, legal, marketing, human resource, among other things.

my father handled engineering (machinery, improvement, etc.) and with me, give direction to where our business was going. the business establishment is placed on a small building he owns (ergo free rent). he is currently employed.

apparently, we did not take into account that sales & marketing was a big factor in making the business grow. my mother took charge of this department (with no initial capital shared at all)

it was agreed that no one would touch the profits. because of this, i got a part-time job at night for my own personal expenditures.


already 5 months into the business and profits have proven to be significant.

..

my mother, for some reason, started meddling with how i handled operations instead of minding her own business.

a big fight ensued over breakfast meeting.

long story short, we have different business plans. my father wanted to go corporate. because of this he (with my mom) wanted to loan for new inventory and a new truck and use the profits for the next two years paying for this loan.

i, on the other hand, would want that we steadily churn production until we hit ROI in about 10 to 12 months then take it from there.

voices were raised, things that weren't supposed to be said were said. the last insult that got me fired up was that they wanted to see the books to see if i was stealing money from the cash box and that i was getting a bit too close with one of my female staff.

that was uncalled for. i sleep 4 hours a day running operations while doing part-time while my mom "loans" from the cash box for her other business and my dad DOES NOTHING AT ALL except ask how the sales was for the day.

eventually, i told them i wanted out. i wanted my share of the capital back and i'll be trasferring the business to my dad. good luck to them.

my dad does not want me to give me back my money and is delaying the transfer of business, which means i'm still stuck in operations, sleeping 4 hours a day and dealing with insults from them.

i'm really thinking of going through legal means, or just closing down the business until they give me back my capital.

...

sorry for the long post. i really need sound advice on this. tia.

[Chris B]

kmi,

Do not give up. Take some time to clear your thoughts and think about how your busy days can be spent more efficiently. I have had arguments with my parents about how my business was run and it really sucks. I understand why you wouldn't want to take out loans from the start, I would feel the same. I wish there was a better way you could voice your opinion.

All I can say is hang in there, and try your hardest to harness the business, if you wish. Take control of all operations as to avoid conflict with your parents, or come to an agreement.

Best of luck kmi.

- Chris

[rpermana]

this is why i avoid partnership business

[kingston]

I understand you have a sole proprietorship, but maybe you should have a [shareholders] agreement with your dad for which will set out what is expected from each shareholder. Also, maybe you could have employment agreeements for yourself, your Mom and Dad so everyone understands what their duties and rights are, who runs the company, who makes what decisions...

Your Mom and Day will probably not want all these docs as they want to tell you what to do. But tell them this is how business should be done and a boat can only have one captain...

You can find these docs online or consult someone who may be willing to assist (if you have the funds for that right now).

[Future of Edu]

I'm going to set the fact that they are family aside. You said the business is a sole proprietorship and in your name. Why would legal action need to be taken? Is the business account not in your name? What is in your fathers name? Why would you walk away and hand anything over? Right now, the tax liability as well as legal liability is on you?

Are there any contracts signed between the two of you? If not, your parents are entitled to nothing and maybe before it gets worse and ruins your family relationship, you should split business ties. Walk away with the business and continue with what you're doing.

Its hard to get advice on this situation because it doesnt sound like you are running a legitimate business. Nor does it sound like you have the business knowledge needed to explain the situation correctly and without emotion.

Good luck I guess,

Enjoy Life,
Nick

[Maxewhite]

It's a fact that your parents' attitude can be like that since that you are still in the starting stages of your business and they probably are not expecting you to run a business like that. Though in the brighter side, you shouldn't stop going for what you've started and show them that you can handle consequences along with the learning parts. Set goals and draw more business plans regularly to also help you evaluate your tasks.