So I started a small landscaping business with a friend about 18 months ago. I handle all the client acquisition, scheduling, payroll, equipment maintenance, and most of the actual physical work. My partner mostly just shows up a few times a week, does some pruning, and then leaves early. Now he's insisting on a 50/50 profit split because that's what we agreed on at the start. I feel like I'm being taken advantage of, but also, we did agree to it. I don't know if I should bring it up or just let it go. Any advice?
Partnership Dispute
My business partner wants half the profits but barely does any work
Let it go? Absolutely not. You're runnning the whole show. He's basically a paid spectator. You need to have a serious talk about renegotiating based on actual contributions.
What does your partnership agreement say? If it's just a handshake deal, you might be stuck. But you can still propose a new arrangement.
Half the profits for a few hours of pruning? Where do I sign up? But seriously, you need to track hours and responsibilities for a month and show him the numbers.
I had a similar situation with a buddy. We ended up doing a 70/30 split after a very awkward conversation. It sucked, but the business survived and so did the friendship. Mostly.
TumbleweedGuru is right. You can't just let it go. But also, did you have any written agreement? If not, this is a mess.
Maybe he thinks he's contributing more than he is? Sometimes people are clueless. Have a calm conversation first before you assume malice.
Half the profits? Ha. I'd be asking for half the work first. But seriously, you need to decide what ypu're willing to accept. If he won't budge, maybe it's time to dissolve the partnership.
Sounds like you need a lawyer. Or at least a mediator. Business partnerships are like marriages, and this one sosunds like it's heading for divorce.
So he wants half the profits but not halff the work? That's not a partner, that's a leech. Get out now.
Thanks for the input, everyone. I think the tracking idea is good. I'll start documenting everything for a few weeks, and then sit down with him. I'm not great at confrontation, but this is too important.
Confrontation is never fun, but it's better than resentment building up. Good luck, OP.
Maybe suggest a profit split based on roles? Like, you get a salary for the work you do and then profits are split 50/50. That way he still gets half but you're compensated for your labor.
WillowWhisper has a point. That's a fair compromise., But if he's not even doing half the work, why should he get half the profits? I'd push for 60/40 at least.
I'm curious how this turns out. Keep us posted, OP. Also, make sure you have a written agreement going forward, even if you stay partners.