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Question
Posted by: Ricky | 2012/02/15

Business venture....Have I been ''cheated/sidelined''???

To whom it may concern

I''m a 24 year old male whose just started working. I work for a small company operated by another young guy, 27 years of age. He owns the company which makes over R500 GP a month. I must admit I bend my back working for the guy, I''ve always shared the idea- his success is my success hence me working hard so we can ultimately grow and become successfull business partners.

Recently we thought it was a good idea to start up a distribution side of the company as we have exclusivity to some of the products we sell. We often discussed what an exciting opportunity this may be but never about me having some form of ownership in the new business. I was asked about names and so on. Thats about it

Yesterday the new business was started up. My boss has gone into partnership with a wealthy 30 year old friend of his. This guy is sharp and demands some respect. The friend will continue to work at his own firm and not have any day to day involvement in the distribution company. I have been given the job of heading up the Distribution company myself. This is where I ask for help?? Should I feel cheated in that I wasnt asked to be a partner? Technically I''m good enough to head up the business but not good enough to be a partner? I''ve always made it in the open I have capital if needed. Would someone else in this situation feel cheated? Or am I being a brat and should rather make the most of it and see what the future holds. It just feels like I''ve been on the verge of something great but now i''m just all the dirty work. In my mind I would have least expected a 40 40 20 % share. Something to that extent. Please someone tell me if I''m being unrealistic or not?

Thank you

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Our expert says:
Expert ImageCyberShrink

You have a job, firstly, and that's more than many good people can find. Working hard can lead to promotion and other benefits, at the discretion of the owner and head of the company, and depending on any other rewards that may have been included in the terms of your employment contract.
You say the two of you never discussed you having any form of shared ownership in the company, so it would be unwise to assume that you have any right to expect this.
The boss has chosen to go into partnership, in the new venture, with a wealthy and experienced friend, who can contribute money and experience, both of which are valuable for any business.
It doesn't sound unfair for them not to have offered you a partnership, as this usually would emply bringing money into the business, and if as you say you have only recently started work, you don't bring long experience.
You are, frankly, being unrealistic, especially as you seem to have expected such an offwer to have been made without you actually revealing your wishes or hopes. Talk frankly and pleasantly with your boss and his partner, and see if there is anything they can suggest. If they don't need or want you as a partner, that's their prerogative.

The information provided does not constitute a diagnosis of your condition. You should consult a medical practitioner or other appropriate health care professional for a physical exmanication, diagnosis and formal advice. Health24 and the expert accept no responsibility or liability for any damage or personal harm you may suffer resulting from making use of this content.

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Our users say:
Posted by: Liza | 2012/02/16

If you do not have the communication skills to discuss this matter with your boss, then I can almost guarantee that you don''t have the communication skills to manage the division effectively - nevermind being a partner!

You say that you have capital. How much do you have? It''s easy to think you have enough - when you don''t even come close. Would you have enough up front to pay the salaries of ALL the people in the new division for two years? And salaries are only a fraction of the cost of starting up a new venture. Then there''s still capital outlay for assets(computers, vehicles, furniture), the monthly costs like rent, water, electricity and telephones.

If you really have enough capital and the business acumen, it''s easy to begin your own business instead of whining about not being given opportunities proportionate to your sense of entitlement. It''s up to you to make your own opportunities!

My 2c.
Liza


Reply to Liza
Posted by: Realist | 2012/02/16

I have seen this sort of thing before. More often than not owners of businesses do not welcome a " partner"  who may be able to influence decisions he may wish to make. In short, he always wants to be the " boss"  If he has not yet asked you to join him as a partner, you will always be looking in from the outside. He values for your hard work, integrity and good money making ideas, but he does not want you in on the inner circle. He will continue to use you as he knows he can always rely on you and you will continue to bust a gut for him. I suggest you look around and see if you cannot start up something on your own as you seem to have a gift. Otherwise, put your cards on the table and get it all out in the open.

Reply to Realist
Posted by: Purple | 2012/02/16

You are an employee of the company. You have not been cheated in any way.

If you would like to provide capital and become a partner, you will have to discuss that with the business owners. They are under no obligation to you.

Reply to Purple
Posted by: almost mad | 2012/02/16

I think that perhaps he didnt know you would be interested in owning a share. Why not still speak to him and ask if you can buy some shares.

Reply to almost mad
Posted by: Mature Business Person | 2012/02/16

You are 24 and just started working.
You expect a 20% share of this new venture?
Are you mad you, have neither the experience or the business maturity to expect anything but employment from this guy.

Print this post out and put it in a drawer, in 10 years time get it out and read it. You will laugh as much as l did.

Reply to Mature Business Person
Posted by: Phil | 2012/02/16

Maybe you should talk to your friend  and tell he what you told us?

Reply to Phil
Posted by: Financial Manager | 2012/02/16

Do you have an employment contract?
Sounds to me that you just work there as you say " just started working" 
Partnerships need to have contracts.

Reply to Financial Manager
Posted by: cybershrink | 2012/02/16

You have a job, firstly, and that's more than many good people can find. Working hard can lead to promotion and other benefits, at the discretion of the owner and head of the company, and depending on any other rewards that may have been included in the terms of your employment contract.
You say the two of you never discussed you having any form of shared ownership in the company, so it would be unwise to assume that you have any right to expect this.
The boss has chosen to go into partnership, in the new venture, with a wealthy and experienced friend, who can contribute money and experience, both of which are valuable for any business.
It doesn't sound unfair for them not to have offered you a partnership, as this usually would emply bringing money into the business, and if as you say you have only recently started work, you don't bring long experience.
You are, frankly, being unrealistic, especially as you seem to have expected such an offwer to have been made without you actually revealing your wishes or hopes. Talk frankly and pleasantly with your boss and his partner, and see if there is anything they can suggest. If they don't need or want you as a partner, that's their prerogative.

Reply to cybershrink

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