Hey everyone,
This is my first post on this forum. I hop on here occasionally to get ideas for my business. I've run into a slight problem with my business and thought I would see if anyone on here had any recommendations. Just a little background information: This is a family owned and operated business. It was started in 1960 by my grandfather. My father inherited the business back in the early 90's (I believe). We hit hard times in the recession, and were able to tough it out. My brother and I had been employed there for the previous 13 years. 2 years ago my brother and I took ownership of the business as 50/50 partners.
The past 2 years have been a learning experience. My dad owns the property and we are renting the property for a very high amount. We're probably paying 2.5 times what the property is worth, but we have a running business for that (including shop equipment & previous clientele). It has been my brother and I doing everything for the past year. We both handle our own estimates, customers, and parts ordering. I have been handling bills, taxes, and probably 75% of office/management responsibilities. We have occasional spats, but last week it came to a head.
My brother is an awesome technician! He can handle small to large jobs with ease. He is constantly pulling motors, doing 1 ton 4wd transmission jobs, head jobs on northstar engines, you get the point. All the big stuff. I can do pretty much anything as well, but I definitely don't get as many hours because of office responsibilities.
So enough of that I'm looking to make the business more profitable, and basically am gridlocked because my partner has not been wanting to hire a secretary or technician. He has very high standards and no one seems to meet them. So we got into a fight because of personal stress issues on his end and business stress issues on my end. I want to fix this problem as we are brothers and don't want to see this come between us. My brother wants to liquidate the business, which at this point wouldn't benefit either of us from my point of view. I told him that I would like to do a 51/49 partnership so that we could move the business forward and this was a huge insult to him because he thinks I'm wanting to go on a power trip or something.
So tonight I was trying to think of another solution. We have been taking a draw for payroll of the same amount for the previous 6-7 years. What are your guys opinion given our current situation of offering him 70/30. And also partner that is taking 30% of profits getting a salary of what we have been taking for the previous 6 years. I feel that if we could move the business forward by hiring additional help it would pay the 70% partner well and the 30% partner is guaranteed the existing salary + 30% profits. As far as responsibilities the 70% partner runs the business and the 30% partner is pretty much turning wrenches. Does this sound unreasonable or does anyone have any suggestions? I know it's probably hard to tell without numbers. I'm going to crunch some more numbers before I make him an offer as it may be to close at 70/30.
I really want to move this business forward, but not at the cost of our friendship.
Any help in this matter is greatly appreciated!