partnership

[neil]

i have recently started a small barbers with a partner we both put in the same money for starting costs . we are now open but my partner does not cut hair i do most of the work .the work i do covers the rent .so if all is covered by the work i do i.e. paying bills rent ect how much percentage should i get .

[vangogh]

What does your partner do? Is his only contribution the financing? That's an important contribution, but is that all there is? Does he help run the business or do the marketing? Cutting hair is an important part of running a barber shop, but there's still more to running the business. What other things besides the initial money does your partner contribute.

Also did you sign an agreement prior to starting the business?

[CrossCountry]

One of the problems of entering partnerships where the expectations are not clearly defined in a contract is that later in the game one or the other partners run the risk to feel abused. I interpret your question to mean, I do more of the work, and I am doing everything here, why should you you get your share, what do you merit (from you to your partner I mean?)

I am strong believer of win-win mentality, and if I were you I would be disusing this openly with my partner. Exactly as you feel it, and of course, you being open about what your partner's position.

If you guys have not been in business for long, it is still a good time for you to redraw a contract where all of these contingencies are accounted for. Trust me, you guys will communicate better when you know where your legal limits are.

[vangogh]

One of the problems of entering partnerships where the expectations are not clearly defined in a contract is that later in the game one or the other partners run the risk to feel abused.

I agree. I think this tends to happen more when your partner is friend or family, but it's not limited to either. At the very beginning there's a tendency to assume everyone else is thinking exactly like you are when it comes to business decisions or that you'll work the parts of the business you enjoy and your partner will take care of everything else. That's why it's so important to talk in advance about what each partner will be responsible for doing.

[GreaterVisibility]

Dave Ramsey often says that "the only ship that won't sail is a partnership". Partnerships often end in disaster, because people jump in and talk about a cool idea and just do it, without first thinking it through and putting things in writing, addressing all of the things that can come up. Best of luck on yours going forth. You need to seriously get together and lay out the terms in detail and things like compensation should be discussed in detail, and should have been before you ever started.

[Pack-Secure]

Cutting hair is an important part of a salon, but so is accounting, receptionist, marketing etc. If you are cutting hair, who is doing the other jobs? If the answer is your partner, maybe you are not looking at how much work is involved for them.

Drawing up a contract even at this stage of the game, would be an excellent idea. Hopefully you both can agree on the direction of the partnership and who is responsible for what job.

Also keeping in mind that if you both are doing approximately equal work and you are getting tips perhaps, then consider that factor also.