Forums: Discussions for entrepreneurs and small business.

My wife recently started a 50/50 partnership with another person. Now the other partner wants to change this to a 60/40 split in her favor. She also wants to keep 100% of her previous clients sales.   Obvioulsly my wife refused. The other partner wants to dissolve but at this point my wife is refusing.

We have come to find out that the other partner on the side has started another business providing the same service.   What options do we have here?

Unless you have some sort of written agreement for a non compete there isnt any.  I have been involved in a few partnerships in the past and they are touchy subjects.  Even if you are the best of friends everything needs to be in writing.  If the company has little value to it maybe the best thing to do is mutually dissolve the company and go separate ways.  At a minimum, you should form a formal partnership with an agreement outlining, start up costs, duties for each partner, decision making methods, selling and/or dissolving the business.  Chalk it up as lesson learned and be very careful when taking on a partner, take a lesson from someone who has been involved in great partnerships and awefll ones.  Good Luck.

i think if your break this partnershipthen it is good because the person with your wife is not commited to this business now.

Without knowing the details of the situation it seems to me that the partner feels she is in the stronger position and is taking aggressive action.   There's no future in the partnership for you and your wife, and you should be honestly assessing whether the partner has skills you need or the other way around.

My gut tells me it's your side who needs the partner... she doesn't need you, and she's willing to go out on her own to prove it.

I think you should cut your losses, dissolve the partnership, and start over with 100% ownership.  If you and your wife lack the skills or confidence to go it alone, then you've discovered why your partner thinks she's carrying you and doing more than half the work.

Try to be amicable when you split, and position your new business so you are not fighting over the same customers every day - carve out a different specialty.  This way you can do joint ventures with the partner in the future by letting her have some space in the marketplace.