Posted on 02/02/2013 12:24:14 PM PST by Kaslin
Dear Dave,
My fiancée has a small photography business, and she wants to form a partnership with a college student who is majoring in business. I think this is a bad plan, but I’m pretty sure she’s not going to listen to me. What do you think about the idea?
Bruce
Dear Bruce,
A partnership is always a bad idea. There’s absolutely no upside for her, and if you feel there’s nothing you can do to keep her from making such a ridiculously bad mistake, then you guys are going to have issues in your marriage, too. It sounds like she’s looking for emotional support combined with some business acumen. But that doesn’t mean she needs a partner, and she definitely doesn’t need one who’s still in school and has no experience.
If she feels like she needs help, there are ways to do it without turning this into a partnership. She could hire this person and let them share in profits while she owns 100 percent of the business. That’s not a bad idea at all. But she needs to stop and take a breath, because if she walks headfirst into creating a partnership with this person, she’ll most likely lose clients, then sections of her business and finally a friend. On top of it all, it will create marriage strife.
As I said before, partnerships are never a good idea. But this situation goes much deeper than business practices. You two must learn to listen to each other’s instincts and make decisions together. If you can’t do that, then you don’t need to get married. And by the way, this is not an issue about the husband being the boss. You should be willing to listen to that little voice inside her, too, when it says something doesn’t seem right!
—Dave
Dear Dave,
I’m thinking about selling my business to a corporation. If I do this, I’d continue to work there for a couple of years after the sale. I’m not sure about the feelings I’ll have during this time, plus I worry about how the new ownership will treat my team after the sale. Do you have any advice for someone in this situation?
Paul
Dear Paul,
First, I don’t think you’re messing your team over or violating the principles of EntreLeadership by simply selling your business. The fact that you’re concerned about these issues tells me that you’re a quality person and a servant leader. Just remember, as long as you’re there—whether as an owner or just a leader—you have an obligation to look out for your team and do good things for them.
The big thing that scares me in this scenario is the next two years may be the most miserable of your life in the workplace. It’s tough seeing someone else come in and take over what you’ve built up over the years. You’ve poured your time and blood, your sweat and tears into this organization. It’s yours! You might even want to shorten the time you remain there a bit, if you’re certain this is the path you want to take.
But to tell you the truth, I’m not sure you really want to sell this business. There’s nothing wrong with turning down an offer, no matter how generous it may seem. Considering how much you seem to care about the business and the people, I’m just not convinced you’re ready to walk away. Now, if there’s something else you’ve got a burning desire to do, then I’d say go for it. I understand that kind of thing completely. But it’s a blast to have a job you love and looking forward to going to every day.
I’d take some more time to think about it, if I were you. There may be a big pile of cash waiting for you if you sell, but I can tell you’re concerned about your team and the amount of time you’ll be spending as an employee at the company you created and grew into a success. Use your heart and your head on this one, Paul. But if you decide to sell, I’d work things to where I had to spend as little time there as possible once the new owners take over.
—Dave
Thanks for posting Kaslin,
I like to read & listen to Dave Ramsey because he gives advice. It may be (and usually is) the right advice but he always gives reasons for his answers. Even if you don’t follow his advice he gives you food for thought.
If we had a majority in DC who were Dave Ramsey lites even, this nation would be far, far better off. Instead we have the total opposite financial morons up there —well most of them that is.
Use your heart and your head on this one, Paul. But if you decide to sell, I’d work things to where I had to spend as little time there as possible once the new owners take over.I speak from no business experience at all, but I remember well the statement a professor made in the only business course I took in college. Namely, that it cannot be taken for granted that the maximization of profit is what actually motivates the owner of a business. And it only makes sense that people don’t start businesses only to make money, but to make a point as well.In the startup and sustain portions of the businessman’s career, profit maximization remains the motive, but at a certain point the money no longer is the point of the operation. The business becomes self-justifying, and the owner is willing to work for free. It can become essentially a hobby. Which is what it may in some cases have actually started out as in the first place. I saw it in my father in law . . .
But, “You didn’t build that!” </sarcasm>
Heck, just Financial Peace University graduates who’ve learned how to balance a budget would be good.
Dave Ramsey ping!
Dave Ramsey Ping.
Dave Ramsey Ping.
You can get all of his shows for free from the archives on his website. Click the radio tab, then click archives.
www.daveramsey.com
I listen to Dave on WIBA AM1310 ‘I Heart Radio’ through my computer. Here’s my local channel, but you can search and find Dave from here:
http://www.iheart.com/live/2661/?autoplay=true
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.