My friend and I started a small bakery together six months ago. We agreed to split all startup costs 50/50, from the lease deposit to the ovens. The problem is that I'm the one doing almost all the daily operations, managing staff, ordering supplies, handling customer complaints, while he's only involved in occasional marketing ideas. He still takes half the profits. I've tried bringing it up but he gets defensive and says his financial contribution is equal. I'm starting to feel resentful and don't know how to move forward without ruining the friendship.
Partnership
We split the startup costs evenly but not the workload
That sounds really tough. Have you considered putting together a simple document outlining the hours you each put in over a typical month? Sometimes seeing it in writing makes it less personal.
Money vs time is a classic issue. Equal investment doesn't mean equal effort. You need to have a serious sit-down and renegotiate roles and compensation based on actual work, not just initial capital.
I had a similar situation with a business partner. We ended up writing a partnership agreement that included a clause forr sweat equity. It was awkward at first but necessary. Maybe suggest a mediator to help the conversation stay productive.
Thanks, everyone. I like the idea of tracking hours, but I'm worried it will come off as accusatory. He's not a bad guy, just a bit oblivious to how much actually goes into running the place day-to-day.
Have you thought about hiring someone to take over some of your tasks? That could free you up to focus on higher-level stuff and maybe make the workload feel more balanced.
I don't think it's fair to expect him to suddenly start doing mre if that wasn't the original agreement. But you should definitely talk about adjusting profit distribution if you're doing more work. It's not personal, it's business.
RustyNail makes a good point. The original agreement was for costs, not workload. But that doesn't mean it can't be revisited. A neutral third party might help you both see the imbalance without it turning into a fight.
Have you considered setting up a meeting with a small business advisor? They can help mediate and suggest a fair structure. It might be less awkward than bringing it up alone.
One more thought: maybe propose a trial period where you take a larger share of profits for three months while you train him to take on more responsibilities. That way it's temporary and less threatening.