Forums: Discussions for entrepreneurs and small business.

Hi! I need some advice on a business arrangement I am involved in. But I want to be fair to all sides (myself included!)

My long-term boyfriend and I have a classic car restoration business. He owns the garage (very large, actually too big for my needs), pays the taxes, insurance and electric. He also provides most of the money to buy cars and parts, although I contribute what I can. I do all the work on the cars: mechanical, interior and paint and body. I sell the car, and from the sale, we both get back any money invested, then split the net profit 50/50. It wasn't a big deal in the past because we were doing lower dollar cars. Now we are doing higher dollar cars, and since I am trying to become more independent financially (been unemployed for over a year, where he has several successful businesses already), and since I do all the work, I am starting to feel like I should ask for a larger percentage.

I have done some research and I could rent a garage on my own for $500 a month plus utilities, and could keep all the profit for myself and reinvest, if I can save enough to be able to afford to buy cars and parts myself.

I would like advice and opinions on this.

Thank you!

I would first talk to him and see where he wants to go with the business. It is tough to mix a relationship and business. Has he said why he is doing this?  Was it initially to help you get something going or just to make money?

I am just trying to see what his initial expectation was.  I am sure if you talk to him, you can work something out so you are more independent.

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Anna Marie Radu PhrugalPhoenix.com

I read your post and think $500 is a pit simplistic.  There are many other costs you have not factored in.  For instance, you may have to take out workman’s comp insurance.  That could run you $1,500 per month for one person - you.  You would also have to pay your own business license, fees and taxes that are currently paid by your boyfriend on his shop.  Figure conservatively around $50 per month.  Also, you may be assessed a tax on all equipment you claim in the name of the business.  In my county that is 3.5 percent of the value of the equipment.

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The older we get, the more excuses we make for not chasing after our dreams. But truth is, goals are attainable at any age.