Ask Timpo: Help! My business partner is not pulling his weight
Q: My COO and business partner owns 50 per cent of the firm – but he’s not pulling his weight. I can’t afford to buy him out. Help!
Your partner is not pulling his weight
he has become a passenger
A: Even if you can’t afford to buy him out, your partner needs to leave for the good of your business.
He has become a passenger, so too much of your energy is spent worrying about him instead of thinking about the business. It’s time for a serious talk with two people: your sub-par partner and your bank manager. You are assuming that a deal can’t be done, but you never know where discussions can lead.
Your ultimate goal must be 100 per cent control and the only way to accumulate the money you need is to create cash in the business.
In the meantime, try to negotiate a deferred deal with your partner, with a deposit funded by bank borrowings.
Alternatively, talk to venture capitalists – but remember, they look for racy rates of return. Giving away equity is a very expensive way to borrow money.
Don’t be despondent. You are in the driving seat. You are the prime factor in your company’s future success. The business is worth more to you than anyone else, don’t be tempted to pay too much for the shares you don’t own.
It pays to be optimistic. Miracles can happen. Good luck!
John Timpson is chief executive of high-street cobblers Timpson. Do you have a pressing question for agony uncle Timpo? Send it to editors@realbusiness.co.uk
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