Labor Percentage Related to Sales Numbers

Thank you for your reply. You are one of the few who addressed my questions\concerns without judging.
I desinged a spread sheet when we first stared but I will change it to reflect day and night time expenses\sales.

As far as my partner being burned out, he was and took an eight day vacation and was refreshed. He leaves to see his son’s football games and comes in late on Saturdays, off on Sundays. He is probably at the shop about 55 hours per week. It was closer to 70 a few month ago but that was too much for him or for anybody else, for that matter.
Beleive me I have tried to have talks with him and my suggestions (many of which I got on this think tank I been reading the posts for 6 months now, but just joined recently) goes in one ear and out the other. If I had a penny for everytime he told me “you just don’t understand,” we would not have to worry about money. What frustrates me the most, is that the business has been treading water since we took over; and he is doing nothing to make it better. When I make suggestions about how the could operate better, how to market nothing happens. (I set up a web site, installed telephone system and fax machine to help). Hey Mike did you call that customer the other day that ordered the 12 pizzas to see how everything was? Oh no I forgot. Did you enter the emails off of the business cards of the folks that have put their card in the fish bowl, that I set up for a monthly gift certificate drawing. No I, i don’t know how to do it. Very little of what I suggest gets accomplished, and I just don’t have time to do it myself. We continually throw out Roast Beef because it goes bad, therefore, I suggested that he has a Roast Beef special sandwich so we use it before it goes bad. The special board sits in his office and collects dust. I wish he would handle business insted of taking 2 hour naps in the afternoon. Anything he asks me to do I do. I want to help him as much as I can but I didn’t sign up to have two full time jobs.
I’m tired of whining on this post; I assure you and everyone else it is not my intent. I am at my wits end with this entire situation and should have listened to our mutual friends and said NO!!! Thanks Again Jack

PizzaJack

If you wish to reply to a specific reply on this forum hit the “quote” button which will yield the result above. Hitting “reply” simply allows you to continue the thread. This will make better sense of your posts . . .

In my personal experience, I have never seen a partnership work out where one puts up the money and the other is expected to put in the time. The latter just has no respect for the investment and has nothing to loose other than time. While I would agree with you that it logically seemed like a great idea it just does not work out.

Imo, you are going to loose a friend. Get someone lined up to replace him, make a proper business decision and move on. Probably the next best thing to do in your situation is have a broker find someone to help cut your losses.

I suspect you already know this, however, and your conscious is just making you look for some other answer here. The writing is on the wall . . .

PizzaJack

I have yet to find anyone who can provide ADVICE without making a judgement. Otherwise its not advice its just information.

From what you’ve written it certainly sounds that the pair of you have an situation which ain’t going to improve. You’re not happy with his performance and he isn’t willing to listen to your point of view. You have offered the business to him but he doesn’t want to accept/sign the terms.

In that kind of situation you either need someone to mediate between you (as I’ve suggested before) or you need to consult an attorney to wind up. Continuing this business is just compounding the problems.

Yes, you two need to get a divorce. If the instructions aren’t in the business’s articles of operations, seek professional assistance. Get a third-party to take of this for you so that things are less personal. Obviously you don’t want to lose this man as a friend; you just can’t have him as your business partner. It’s too bad that good friends don’t necessarily make good business partners!

I’m guessing he won’t sign because he knows he can’t handle running the business on his own. That probably stops him from signing more than the 7% interest. So, you need to either liquidate the shop or else buy him out (I know that might seem absurd if he hasn’t invested much capital in it, but give him what he’s legally entitled to and leave it at that) and find a new partner or make one of your staff members the manager.

I’m sorry things didn’t come together like you’d hoped they would.

I forgot to ask, could there be some underlying health problem of your friend’s that explains why he’s squandered this opportunity?

Dear PizzaJack,

Here’s my opinion and advice:

Your partner is a DUD. Your friend is a DUD. He and his family are taking advantage and USING you and HARMING(by causing loss of capital from yours through disinterest and laziness - and probably theft) you and your family. Friends don’t do this. DUDs do.

Recommendation: See an attorney and review your business setup and agreements; 1) What is your legal entity? 2) Who is the major (or sole) investor? 3) Who are your employee’s? 4) Decide your intent. Do you want to turn the business around? Or hold a lien against it? 5) Have your attorney draw up and deliver what your decision is. **You’ve probably lost the DUD friend (actually you already have and don’t want to recognize it) and your investment. Stop the bleeding.

Your turd of a friend has it made, why would he change it? He’s living off of you and your hard work (sponsoring the business). *Why should he improve the business, you will pay him regardless of how it does.


As far as I can tell, your business is not profitable. Fire the entire lot. Let them get an attorney. Clean house and see if the business is actually viable. If it isn’t, best to cut your losses however you can. Again, take control, FIRE THE ENTIRE LOT OF THEM!!!


Not easy decisions, but you are allowing them to harm your family by bleeding resources into a failing venture.

FIRE THEM ALL AND CLEAN HOUSE!