joe_d
April 1, 2007, 10:57 AM
Good points Sandi.
My partner does have a "contract" with the Company that seems pretty solid as long as "he" fulfills his obligations. But I need to find out exactly what those obligations are, because apparently he was NOT fulfilling them over the past year or so... which led to the possibility of him losing his territory.
So I will make sure to check the details of the Contract.
As far as the "agreement" between my partner and I... we have discussed the framework and decided that if we plan to go ahead after the 9O day period I committed to... we would implement a contract at that point, and redefine the contract accordingly with the Company.
I am being paid (by my partner) a weekly salary for the 90 day period regardless of our sales volume, and a percentage of commissions if our sales volume exceeds a certain number that we determined.
But you're right... trust only goes so far! So thanks for the heads up.
Joe
Hi, Joe,
Disclaimer: What follows is based on experience, observation, and other learning. I am not a lawyer and this should not be considered legal advice.
People can be friendly and supportive as all get out to one another BUT, if you value your friendship, you would be wise to put things in writing between you and your partner and also between the two of you and your suppliers. VP's are notoriously disposable so your support from the company is tenuous at best.
Have you given thought to what happens if someone dies or is replaced in the company and refuses to acknowledge your claims after you've both built the territory? What if you or your friend dies...does the business also die with it?...how will families survive? What if one of you decides they want out because they have other interests down the road? Do you have a written plan in place for a buy-out?
I hate to be a party pooper but you DON'T have a business at this point...you have hopes and dreams and promises...and that doesn't amount to a hill of beans when things change unexpectedly. Families and inheritors can be very nasty where money is concerned and not nearly as trusting as you and your friend. Without some type of written commitments and plans on all sides, you have nothing, legally, as I understand it. Zilch. That's not the way to start or run a business.
Eventually you may want to really expand and need to finance part of your expansion. No bank or anyone else would take you seriously if you neglect this essential part of your business. In fact, some businesses (especially larger well run ones) will refuse to work with you as a vendor to their business if they find out you are operating so unprofessionally in your business. Why? Because they could end up sitting on tons of product that is tied up in court while ownership and right to sell the product is in dispute. Who wants that type of headache?
Take care of ALL the business...or get out while you can with minimal losses.
With all best wishes for success...
Sandi Bowman
My partner does have a "contract" with the Company that seems pretty solid as long as "he" fulfills his obligations. But I need to find out exactly what those obligations are, because apparently he was NOT fulfilling them over the past year or so... which led to the possibility of him losing his territory.
So I will make sure to check the details of the Contract.
As far as the "agreement" between my partner and I... we have discussed the framework and decided that if we plan to go ahead after the 9O day period I committed to... we would implement a contract at that point, and redefine the contract accordingly with the Company.
I am being paid (by my partner) a weekly salary for the 90 day period regardless of our sales volume, and a percentage of commissions if our sales volume exceeds a certain number that we determined.
But you're right... trust only goes so far! So thanks for the heads up.
Joe
Hi, Joe,
Disclaimer: What follows is based on experience, observation, and other learning. I am not a lawyer and this should not be considered legal advice.
People can be friendly and supportive as all get out to one another BUT, if you value your friendship, you would be wise to put things in writing between you and your partner and also between the two of you and your suppliers. VP's are notoriously disposable so your support from the company is tenuous at best.
Have you given thought to what happens if someone dies or is replaced in the company and refuses to acknowledge your claims after you've both built the territory? What if you or your friend dies...does the business also die with it?...how will families survive? What if one of you decides they want out because they have other interests down the road? Do you have a written plan in place for a buy-out?
I hate to be a party pooper but you DON'T have a business at this point...you have hopes and dreams and promises...and that doesn't amount to a hill of beans when things change unexpectedly. Families and inheritors can be very nasty where money is concerned and not nearly as trusting as you and your friend. Without some type of written commitments and plans on all sides, you have nothing, legally, as I understand it. Zilch. That's not the way to start or run a business.
Eventually you may want to really expand and need to finance part of your expansion. No bank or anyone else would take you seriously if you neglect this essential part of your business. In fact, some businesses (especially larger well run ones) will refuse to work with you as a vendor to their business if they find out you are operating so unprofessionally in your business. Why? Because they could end up sitting on tons of product that is tied up in court while ownership and right to sell the product is in dispute. Who wants that type of headache?
Take care of ALL the business...or get out while you can with minimal losses.
With all best wishes for success...
Sandi Bowman
