filipinaya
New member
Please note that before reading, I am highly new in the business owning world. All the way from how to create appropriate contracts to even taxes. I'm new at everything.
Very recently, I bought into a friend's company. It is very small. Our target revenue goal this year is $750k. I bought 5%. Super small percentage, but I bought in because I believe in my friend, the opportunity was there, and I want to help. When I bought in, I said I would help with sales and work on setting up an online store, but i bought in from a casual standpoint. I was also allowed to have a small commission of each sale.
He has another partner that has 40%.
I also have a 9-5 job that pays really well. I work from home, so it is flexible to an extent, but it is sales, so I need to hit my quota. If I am not meeting my numbers, I obviously need to work harder.
I've only been with the company for 7 weeks... Recently, there has been some resentment going on that sales aren't doing well. And a bit of finger pointing, especially from the 40%er that I'm essentially not doing anything.
It is my fault that there were no expectations set up before buying in. E.g. what are the owners' responsibilities, what are my specific responsibilities, etc.
Because of this, I asked my friend, "I only own 5%, in your opinion, how are the responsibilities supposed to be split up?" He said, "33%, 33%, 33%." (There are 3 owners including me).
I was a bit taken back by this because the juice of 5% ownership plus a tiny commission is not worth the work of 33% and honestly I was not expecting to work at 33% of the business due to only being 5%.
What are your thoughts? I am leaning towards giving up the 5% because I am not willing to work 33% AKA full sales manager, hiring sales, firing sales, running out to the sales people to team sell, helping with quotes at the drop of a hat, etc.
Very recently, I bought into a friend's company. It is very small. Our target revenue goal this year is $750k. I bought 5%. Super small percentage, but I bought in because I believe in my friend, the opportunity was there, and I want to help. When I bought in, I said I would help with sales and work on setting up an online store, but i bought in from a casual standpoint. I was also allowed to have a small commission of each sale.
He has another partner that has 40%.
I also have a 9-5 job that pays really well. I work from home, so it is flexible to an extent, but it is sales, so I need to hit my quota. If I am not meeting my numbers, I obviously need to work harder.
I've only been with the company for 7 weeks... Recently, there has been some resentment going on that sales aren't doing well. And a bit of finger pointing, especially from the 40%er that I'm essentially not doing anything.
It is my fault that there were no expectations set up before buying in. E.g. what are the owners' responsibilities, what are my specific responsibilities, etc.
Because of this, I asked my friend, "I only own 5%, in your opinion, how are the responsibilities supposed to be split up?" He said, "33%, 33%, 33%." (There are 3 owners including me).
I was a bit taken back by this because the juice of 5% ownership plus a tiny commission is not worth the work of 33% and honestly I was not expecting to work at 33% of the business due to only being 5%.
What are your thoughts? I am leaning towards giving up the 5% because I am not willing to work 33% AKA full sales manager, hiring sales, firing sales, running out to the sales people to team sell, helping with quotes at the drop of a hat, etc.