partnership split and funding question

[bisnisse]

Hi

I started a company together with two friends.We are now starting on our first project with our first client.
The thing is , I feel like I do all the work and I think about changing the partnership split we agreed on before any money comes in, here are some details.

It was my idea to start the company, I have all the knowledge and I do all the work. I come up with 95% of all the ideas for the company. I have to learn the other guys and tell them what to do. And it seems like I have to tell many times before they understand or do anything.we set up meetings and deadlines but they forget about it. maybe they lack some interest, but I let it go and then do it myself instead. I have a passion and do a lot research and work on my own. The other guys don`t, and when we have meetings they are more interested in texting their girlfriends. I feel like if I don`t act as a boss and have a vision what to do there is nothing there, and nothing happens. I sometimes give them stuff to do but end up doing it myself as it seems like they don`t take it seriously and they don`t prioritize it. One of the guys calls me every day but he just repeats what I`ve already said before.
Sometimes I think I made a wrong decision to start the company with my friends, I could do everything on my own.The thing is I need someone to bounce off ideas and If it wasn`t for my friends I don`t think I would start it all on my own at this point, but maybe later. One of my friends have very good taste and are good support on my ideas, but he don`t like to work much on his own, and he tells me that. He says he don`t have the same drive as me but he wants to be a part of the company.

When we started the company we decided to split 33/33/33, but It`s been up a couple months and I feel I deserve more of the share at least 50%, and I want to clear things out. What is a common share for 3 people in this situation? Would It be a better idea to start it as my own company and do a deal with my friends on different projects? And when we make money they can invoice my company? But I feel if I do that maybe they will completely loose interest and I have to do it all on my own.
Another thing: I think I will suggest that I become the boss. Do I have to own over 50% to be the boss or just the largest share?

I will have a meeting with them soon and I want to write it all down on paper.

Funding:

I have little experience with funding and I have some questions
My friends have no money so I will fund most of the company myself. Is it normal to follow the partner split percentage when it comes to funding?. Like if I own 50% I have to put in 50% of the funds etc? Is it true that the funds should be recouped before any money can be taken out of the company?

I know my post sounds a little harsh on my friends but it`s not personally as I love my friends, just business, but I`m a little frustrated right now :)

Thanks :)

[Freelancier]

Friends are friends, business is business. It often sucks to combine the two. In this case, I do not get a clear reason why you need them as part of your business. What talents are they bringing to the table that made you want to go into business with them?

[bisnisse]

Friends are friends, business is business. It often sucks to combine the two. In this case, I do not get a clear reason why you need them as part of your business. What talents are they bringing to the table that made you want to go into business with them?

Ah I forgot.

One is very good at talking on the phone, contacting people, networking. And he knows some important people already. he is also very motivated and calls me every day asking if something new is happening. But he don`t add much to the company. usually he repeats what I already have said, and makes them his words if you understand me correctly. But my impression is that he shy away when I tell him to to something important for the company. He also dream about lots of money, cars etc.

My other friend have a great taste and always gives me feedback. If he think its good I know it`s almost there. He is hard to please as myself. But he always delays stuff that needs to be done. He prioritize his day job more than the company and he says he don`t like to work and do`t have the same drive as me. He forgets deadlines all the time. He also suggest that I get a bigger share.

I have mentioned many times that we all needs to be 100% in to succeed at anything. I`m also sending over a lot of research stuff/ideas but all I get back is a"thumbs up". No one discuss or mention anything later on or ask any questions, and when I later talk about the stuff I send to them they don`t remember. Sometimes I wonder if they really read what I send to them and think is important info for the company

In meetings I`m the only one that do preperation and usually talk all the time. I think they rely on me that I will deliver every time.

:)

[ajointventure]

Never ever hire friends to do work for you. And never ever go into business with your friends without first having ironed out all pertinent details including much of what you have listed above. There is nothing I can see in your description above that couldn't be found using a good human resources company. Indeed, perhaps you could attract a couple of business partners who have also some investment money. You should probably seriously consider shutting down, take a few days or weeks off and thoroughly research partnership agreements, share structure and partnership recourse. It may be a hard pill to swallow bisnisse but you may find you will be way ahead of the game instead of where you are now. I learned the hard way incidentally!

[troutspinner]

Friends in business do not mix as others have said though there are the anomalies where they do really work well. Enough on that...

It sounds like your friends do bring something to the table and that you still want their skills involved, you just want them to be more dedicated which IMO just isn't going to happen. Let's face it, it's your very first project and they are already not pulling their load. What are they going to do on project 10, 20 and so on?

I think you need to honestly ask yourself if this is a business you are willing to do alone. If so, great, have a plan in place to do exactly that and how you are going to complete the project you've already landed. If you seriously do not want to go at this alone and want/need their skills then my approach would be money talks.

Establish a cost to cover legal business creation, insurance, etc. as well as having working capital to complete the project. When you establish that number, ask them for 1/3 of the cash (based on your above numbers). This is the exact point where things will start to fall part. ;)

If they do not run but instead cry poor, structure a deal where you own 100% and they can buy in via sweat equity. They can work as a contractor on this project with earnings based on a pre-determined percentage of project profit, and to be paid when you are paid. At that point, they can then use that payment to buy into the business.

Good luck, I hope it turns out well for you.

[bisnisse]

Thanks for great advice:) Iv`e talked to the guys and agreed that I own the business 100%. How is the best way to do investments. Should I do all the investments myself and then just acquire more of the total % we agreed on? Lets say we first agree on what to do, And since I do most stuff I will get more % of the profit. But If I put in all the money as well I will get even more. I think it`s hard to calculate what my share will be, any advice how to do this?. It`s not common that contractors put money into the company anyways right? Thanks, appreciate all answers. I also bought a new book called: The founder`s dilemmas by Noam Wasserman. looks interesting :)