Having a new partner can suck at times - DJ Source Online - Your Online Source for Disc Jockey Resources

diskjokk · #1 (**permalink**) 08-21-2003, 10:09 AM

I just wanted to let you guys know that you were right... having a new partner can suck at times.

Please bare with me a moment cause I have to vent.

Ok, all this time for several months, I have been paying all the bills the DJ business makes. I have been paying the Webhosting fees, the Knot.com monthly fees, my cell phone bill, etc.

Now my partner, hasn't been paying any of the bills since he came aboard. I told him last month that if he is going to be my partner, he will have to help me pay half of the bills. I would need him to help me with the knot.com and Webhosting fees. I told him that this should start in August.

Now that August is here, I reminded him that the knot.com bill is due. Do you know what he told me? He wants to know if I will help pay half of his cell bill? What? We both use our cell phones for the business. No, I can't help you pay your cell bill. I don't ask you to help me pay mine.

For now, until the business can pay for our cell bills, we are responsible for our own bills.

Am I wrong? Urggg! I'm sick of this already and have only brought on a partner some 4 months ago.

Sorry guys... I had to vent somewhere.

But we had an agreement. He wanted to reap all the benefits of getting paid "the full amount" for events that he has done but now there is an issue in helping me pay the bills.

This really sucks.

"thinking about dumping partner..."

Art Dearing · #2 (**permalink**) 08-21-2003, 10:38 AM

If I had been in your shoes, I would have developed a "you pay, I pay, and we pay" listing of expenses from day one...a written contract.

I would have set forth the recurring expenses that each person accrues monthly, and demanded that cumulative amount be deducted from the total events scheduled each month. A bill paying "escrow" banking account should also have been opened for the purpose of paying those recurring bills.

As I understand your venting, your "partner" wasn't carrying his share of the financial load. It is my believe that an Expense Escrow account would have helped. At least common expenses would have been paid. As for his cell phone and your cell phone expense, perhaps a projected amount should have been tallied and included that amount in the recurring bills, too.

Do you have a legal contract between the two of you? If not, then you have set yourselves up for an anticipated problem, evidence your current plight.

Partnerships and Corporations require contracts in order to avoid ambugities, legal issues, and liability problems, too.

Sorry that you had to learn the hard way. Who pays for sprains and medical problems associated with lugging and tugging your equipment? Do each of you carry individual liability insurance policies? Another legal issue to be concerned with is Workmen's Compensation claims. Gosh! Maybe you should be a single op!

Please don't think I am being critical of your situation, rather that I have given you some ideas that may help you in the future.

"Still spinning after all these years."
"Less Mic, more music for dancing."

Rob Peters · #3 (**permalink**) 08-21-2003, 11:32 AM

Art covers some very good points in his post.

I know the frustration too as I have been there, done that and got the t-shirt!

As my accountant used to say: "if you have a partner who will share 50% of the profit, then the should enter the deal with 50% of an investment, and do 50% of the work to get the profit."

I would dump your partner f you can not anwer this question: "What has he contributed to the success of this company?"

My advice: keep a log of calls you make on your cell phone, and figure out what percentage of the total bill is business related, and have the business pay for THAT portion.

Art Dearing · #4 (**permalink**) 08-21-2003, 04:27 PM

Rob's comments are directly on target. Do you have a 50/50 arrangement between the two of you that encompases (1) revenue and (2) expenses? If so, it's time to go back and figure out exactly who owes whom and how much, if you decide to continue with the "partnership" arrangement.

There is nothing more frustrating than to assume that the other person is doing there fair share of the work and wondering why there's no money available to pay the bills.

It's ultimatum time...put up or shut up time!

Warm regards. Don't carry the whole load!

Art

DJMC · #5 (**permalink**) 08-21-2003, 04:51 PM

Hmmmmmmm.... "I Told You So" would be a bit harsh....so I'll try not to comment further....hehe wink

John Daniels · #6 (**permalink**) 08-21-2003, 05:22 PM

I mentioned in the first thread that you started awhile back about what my successful business man-cousin told me many years ago . . .

"Never enter into a partnership! One does all of the work . . . the other keeps all of the money!"

Time to dump him and go your own separate ways!

---

[ August 21, 2003, 10:23 PM: Message edited by: MusicDoctorDJ ]

#7 (**permalink**) 08-22-2003, 03:55 AM

<blockquote>quote:<hr />"Never enter into a partnership! One does all of the work . . . the other keeps all of the money!"<hr /></blockquote>As with anything, there are exceptions. It all depends on who you pick to partner with and what your agreement is from the beginning.

Partnerships can work with the right combination of people and the right business.

- Sherry

Jim Casey · #8 (**permalink**) 08-22-2003, 05:22 AM

Sherry...
I hope it always works in yours and Matt's case! Mixing business with pleasure can be a very tough thing.

diskjokk · #9 (**permalink**) 08-22-2003, 05:33 AM

DJMC,

That's cold man. Funny, but cold. You are right though. I will be talking with my partner tonight. But I am thinking of getting out of this arrangement. I was doing much better when I was by myself. My partner has not been carrying his load financially and now it's getting on my nerves.

I am finding out that I really don't like paying all the bills myself in a partnership.

I will keep you all posted.

[ August 22, 2003, 10:34 AM: Message edited by: diskjokk ]

#10 (**permalink**) 08-22-2003, 06:09 AM

<blockquote>quote:<hr />Mixing business with pleasure can be a very tough thing.<hr /></blockquote>Our personal relationship has nothing to do with our business decisions, they are two seperate entities.

We are fortunately the exception and not the rule.