I have a question about a new buisness partnership?

I am looking at entering into a new partnership with another physical therapist. He currently owns the buisness but never works so I run everything on a daily basis. I asked for a 10% partnership a year for three years to enter into a partnership. He orignally agreed to this but now wants me to buy into the buisness, which is not possible because of all of my school loans (over 130K). Should I stick to my guns or is it not fair for me to be asking for this? THANKS!

I have a question about a new buisness partnership?

First, did you make the agreement in writing? If not, can anyone testify to the agreement? If not, then you are better trying to negotiate afresh since you will find it hard to prove your case.

If you have written or verbal testimony, you can use this as leverage in your negotiations.

The basic answer is, that you should both stick to the agreement made unless you both agree to change it or to a penalty for breaking it.

It sounds like you have a good position since you are essential to the operations. Consider what you would do if you are not able to negotiate the ownership? Could you go it alone with clients from this business? If so, what would that be worth? If you have a proven track record and bookings, you are very likely to find someone to invest in your business (it%26#039;s a lot easier if cash is due in).

With that as your fallback position, you can now negotiate strongly for what you want. If you have a neutral professional that you can bring in as mediator, do it. Business partnerships are like marriages and you don%26#039;t want the emotions to get in the way of reaching a sound agreement. Schedule you meeting away from distractions at work, list your requirements and outline your what you want and by when. You have no obligation to talk about your fall-back position - save that just for you.

If I were in your shoes and the partner was not pulling their weight (a threat to my livelihood) and changing the terms without notice (a threat to my livelihood!), I would be negotiating for a percentage split based on time spent on the business and the revenue it brings in. They keep a percentage based on assets and the time and effort they put in. Unless their investment brings value to the business now (goodwill from customers before you came on board), they shouldn%26#039;t be trying to make a fast buck out of you now.

If you do look at buying into the business, you should be looking for a majority share. Again, with a good track record, you should be able to find a silent investor willing to put up the money.