I’m 19 years old and have a window cleaning business with my friend who is also the same age. We started door knocking and for each house we did we split the pay 50/50, however recently we knocked on a door where a person who owns hundreds of housing commissions in Sydney decided to give us a chance by cleaning the windows of her properties as the owner likes helping out young entrepreneurs like ourselves. When this happened my friend called me wanted to talk about a pay change, where he gets more as he feels he has brought more value to the company e.g. getting in contact with friends who are builders who need concrete removed from windows and selling more than me in terms of door knocking. I realised that this is true and was put in a position where I had to make a big decision on the pay change of the company. He would threaten me at any time that he would leave me and keep all the clients to himself as he was the main person in contact with them. At the end I ended up agreeing that he should get more since he is bringing more value to the company, however the definition of partnership gets wonky here as I made my first mistake of agreeing to receive how ever much he decides because at the end of the day he is my friend and I had trust in him and I also slipped up by agreeing that he owns the business because he thought of the idea of window cleaning, however legally this is not true since I own the ABN.
I admit to my mistakes, but now it has come to the point where we have done an our first job and the pay he has calculated equates to 70/30 his way. I did not agree with this because he told me the way he calculated the pay was based on how much work I did, and with that property I did more than half the work. He is doing sneaky things like asking his friend who works in law to write up a contract so everything is in order, he told me about this and said nows the time to discuss what to have on the contract, I began by saying my ideas and then he switches up and says I’m not here to negotiate, he also tells me that he doesn’t want me to get more clients probably because he doesn’t want me to have leverage over him, he also wants to pay me for all the money that we split 50/50 investing in the company I guess to try to clear my name from ever investing in it so he looks like the owner. Keep in mind that anytime I disagree with anything he threatens to leave with all the clients who he has made a great relationship with. He then tells me that he has a new way of calculating the pay which is by asking the business owner who owns all the housing commissions how much to pay me.
He kept threatening to leave me and that I should go back to my 9-5 so I tried to save it by saying that I’d transfer the abn to his name. But I’m having second thoughts and a hard time putting all my trust into him. I don’t know what to do since i do feel like I am getting walked over but at the same time this is my only source of income but it isn’t for him so he has the power to bend my hand.
Sounds like he’s good at sales and has let that go to his head. This is great for the business and he is bring in customers but eventually someone has to wash the windows.
This dude is not your friend. You need a lawyer (your own, not one you share) to help draft a partnership agreement. Possibly Head of Sales and Head of Operations even partners with commissions for the Head of Sales and performance bonuses for Operations based on KPIs like CSAT and NPS?