Hi there, when i first started out I had a partner, he doesnt know much about hosting but he helped out with the finance etc. Then i moved onto a bigger reseller account and he dropped out as he already has a business and didnt want to risk losing any money and damaging his current business.

The thing is i am nearly at break even point now in less than 1 year of trading and i think he is interested in coming back in.

What i need to know is how to go about persuading him and keeping him instead of him dropping out at the last minute. I am happy to do most of the work with accounts, tech support etc and he runs the financial side of things. I think his reluctance is mainly because he doesnt know a lot about it, although he is learning and i know he is interested in the idea.

Have any of you got silent partners who dont work on accounts etc, they just stay in the background?

You should have a partnership agreement contract, where everything is set in writing. This way you will know what to expect of one another. The simple truth is that different people have different levels of motivation. If your partner is not motivated, you may be just wasting your time by bringing him back aboard. It might help you to find out more about why he's interested now again, after all this time.

maybe i didnt make sense, the guy is my best mate i dont mind doing all the work, what i really want to know is : does anyone have a silent partner whos involved for financial reasons and not a lot else?

I also want a silent partner.:D :D

er you have to give them a percentage if not half of your profit

I would say that it makes sense to avoid a silent partner until you really need one.

If you are breaking even now, do you need your silent partner to return?

If the finances he was providing isn't needed any longer, why bring him on board.

But if his ability to manage the finances is the thing you are interested in, the bring him back. He will help that side of it.

The reason i want him back is because i can manage the hosting but he is the one with the business experience, finances taxation etc

Whatever you agre to ALWAYS in black and white (written)! ;)

Going into business together is a good way to end a friendship. Even more reason to have everything spelled out in advance.

Originally posted by tazd9t9
maybe i didnt make sense, the guy is my best mate i dont mind doing all the work, what i really want to know is : does anyone have a silent partner whos involved for financial reasons and not a lot else?

have had slient partners in the past, Don't know the rules of your country of origin but in the states, you have to draw out a nice agrement. otherwise you will end up on the short end of a stick


mike

What you are describing sort of sounds like an 'angel.' Someone that is helping financing things and taking an interest in your project. Its a good situation to be in and quite typical. To get to the heart of your question I think you need to find out what drives him. What are his interests and why does he want to help you out other than just your friendship. This may give you insight in his motivations and hence how to keep him interested.

I assume you have a structure to your company. If you own everything maybe he is waiting for you to offer him a piece of the company in return for his money and assistance. Many times an angel will wait until the entrepreneur actually makes a proposal for any number of reasons. They may want to see if you have maturity to make offer, make an offer that is reasonable and in good faith based upon the angel's contribution (as a way to judge your valuation of his contribution) or because they don't feel it is proper to propose ownership first.

If I was in your situation I would;

a) try to find out what motivates his participation
b) do some soul searching to see what I want from this individual and what I am willing to give up, and
c) ask him.

Just flat out tell him what you are wrestling with and see if together you come up with a plan.

If you are both honest, its my opinion to push the agreement out until you have an good understanding of the obligations and responsibilities of each to other and it makes sense to spend dollars drafting an agreement.

The reason i want him back is because i can manage the hosting but he is the one with the business experience, finances taxation etc

Here's some news -- that business stuff is almost more important than the technical stuff (you need both to be successful).

We started out as a 4-person partnership, and the division of responsibilities evolved pretty quickly into where we are today almost 3 years later. Only one of us is a heavy-duty system administrator.

We also have a 'silent partner' of sorts -- a private investor who gave us a sum of money in return for a sliver of ownership.

Ours worked out a little like that too, but we're a group of girls who have known each other for at least 5 years. One of my partners has known me since 11 years ago ;)

So we work base on mutual trust. Nothing is in words or black and white because of that. Besides, aside from our business relations, we're girl talk buddies and also share the exact same hobbies. Business seems to come in as a side-line topic for us, although we can focus a lot of time on it if we want to :D

Of course, if your partner is just a financial investor, some wording down of agreements will definitely be in order. Going into business together will not always spoil a friendship, but going into business with just ONE partner giving financial support will DEFINITELY spoil a friendship.

My 2-cents worth :)