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Question
How to "fire" a potential business partner that people like in a small town?
I'm starting a new photo/design business (in addition to an IT consultancy). I was trying to partner up with a guy that a lot of people really like in our small town (he had a bunch of photo equipment that I wanted to utilize and a lot of free time to take pictures). Today we had an appointment to meet and sign our partnership agreement and then we had a very important call to make with a potential client. He flaked. I called him multiple times, but he never responded. I went to his house (where we were supposed to meet), and I could see he was home, but he wasn't answering his door - I suspect he was still asleep. I decided this was totally unprofessional and something I don't ever want to deal with again. I called the client and put together the deal on my own. I'll do the work myself. I'm concerned about public back-lash. It could be bad if potential clients to hear I handled him poorly. How would you suggest I break it to this potential partner that I'm cutting him out?
1 year ago - 2 answers
Best Answer
Chosen by Asker
Ah you've reached the reality check already!!!! Thank god you did it before you incorporate. There are a few very important rules of business. All successful business people know the scoop. Here is one rule: Know your partners. Period. So...do it nicely. Here are a few methods: change business strategy. You can tell him that you have decided to take the business a different direction. Don't be too direct. Just say that you need to revamp your business plan and (importantly)...you don't want to hold his progress up! Or you can....say it is you. This can back fire as he might be curious to see why you are going ahead without him. Or you can find a good partner quick and say that this new arrangement keeps you exclusive (much to your dismay)..and that you must respect other silent partners demands. By the way, is your partner really that well liked. Perhaps it is your perception. Fact is that if he icked you out so fast, he has done the same to others. There are lots of wacks out there. Given you did not say he was a close friend...I don't think you owe the guy a thing. And really you don't. 90% of businesses fail. You have prevented a fatal mistake. From now on...protect yourself. True story: I once had a business with two PhD's. We all worked well together but the other two had full time jobs and needed one more techy for the business. I was in marketing/sales. In comes 3rd PhD. Oh he was a old friend. Very smart, good talker...made it look so good. We took a vote...I went with instinct...they went with friendship. He was a crazy wack. Spent all our money, (said it was for business purposes) What he did was waste it on long distance services, an office that wasn't needed, and a bunch of crap. We had made some good sales...(Operations research company)..all was good, and he tied up all money. We had incorporated. To get rid of the guy, we had to pay him....(equity)...and it basically crippled us. We sold the product to the highest bidder (General Electric). All because they didn't listen. Now I don't know your guy. But I know that you know a bad sign. Do what you have to do. And don't feel bad about it. Afterall...business is business. He would do the same to you.
by jodartha
1 year ago
Asker's Rating: 
Other Answers
it doesn't sound like you've done anything publicly negative yet. He wasn't there to sign partnership agreement, he must not be very interested. You just need to talk to him and find out what's going on. I would hold that client you signed out of the 50-50 deal or whatever, since he didn't show for the appt. - any revenue from him is yours. If that doesn't wake him up - then move on and do the biz yourself.
by Dr. Deth- 1 year ago