Letting someone run your business !!!

[nichola2 10]

Hi all

 

My friend and I are just in the process of potentially buying a business working with children in Sheffield

 

When we started the venture we were hoping to give up our jobs and work in the business. The thing is that we've both got the opportunity of promotion and have better salary's, so for us to give up our jobs at the moment would'nt make sense

 

What I was thinking of was for us to still buy the business and have someone else manage it and employ some staff to work in the business. And for me and my friend to pop in and out during the week and the weekend when we're not working. Has any one had any experiences of doing this. And do you think that with the right staff it would be as successful as if you were running it yourself.

 

I would appreciate your thoughts on the matter

 

Many thanks Nichola

[ChrisTodd 10]

It can be done.

 

If you have someone you know and trust, they can run a business for you.

 

When times are good this can lead to the manager getting a good wage, and there still being enough money left over for you, the partners.

 

However there can be problems.

 

If you don't have anyone you can fully trust, this leads to problems.

 

There may also be the issue of how much responsibility the manager has.

 

To manage fully they have to be left to manage the business, which includes spending power.

 

If the manager does not have full responsibility they may not work effectively.

 

But perhaps the biggest single issue is profit.

 

If you pay a manager this will come out of the profit which would otherwise be available for the partners.

 

In the current climate I have seen many businesses where a manager runs a business but due to their wage this leaves very little profit for the partners.

[anniec 10]

This may make sense in the short term until you can go to work there yourself. I agree with the previous post that you will have little profit if your not running it yourself.

[MBardwell 10]

I think you would have to trust that person with your life, i dont think id be able to sleep letting someone else run a business i owned.

[mikomi 10]

Letting someone else run your business is total madness trust me !!!!!.

[espadrille 10]

I wouldnt recommend it.What business is it that you want to run?

[lpkm 10]

I agree, I wouldnt let someone else run mine, even if I knew them for years... For me its my way only!

 

Luke

[Ninjamagic 10]

Trust is key, you can do it but be carefull

[handypandy 14]

There are many reasons why you shouldn't do it, unfortunately I would probably not live long enough to type them all in. "Popping in and out" ??? If you are not going to live and breathe this business for a good long while, I'd forget it.

[fatboyslim 10]

From personal experience:

 

A few years ago I bought an ongoing business with a friend of mine and we employed one of the existing employees to manage it for us as we were both working full time. We had the same idea to pop in during the day when possible then evenings and weekends.

To cut a long story short, through a clever scam the thieving git helped himself to around £25k from the business over a year until we caught him out. He was arrested, found guilty at court, got a suspended sentence but didn't have to repay anything to us.

We subsequently lost the business and had to remortgage our home to clear the debts!

 

We learned the hard way!

 

It can work but total trust is needed.

 

Be careful and good luck:thumbsup:

[do-a-bull 10]

This happened to me too. Don't trust ANYONE to run things unless they offer some form of personal security and even then use a good contract.

 

If things go wrong they will only lose their job, where you could lose your savings / house / security you put in, have your business milked, and them be left with cripling debts for years. You will never hear from your scammer again; and don't even bother with court - it is a joke.

[Hypnolady 10]

Do you have anyone else, eg friend or family who could buy into the business with you and run it as a partner rather than employee?