Starting up advice



From: Sam Coster

I previously posted this to the wrong Forum
and all I got was "if you cant deal with
,throw in the towel"

Can I have some informed opinion.

We have a PI Group with three partners.
Each of us has different skills, but the main
responsibility for the smooth, profitable
running of the group rests with the
Administrator, with the other partners
contributing when there skills are required.
We all agree that there should be equal
shares of the bottom line, but at present we
are trying to work out an equitable system of
reward for the what I call the Day to Day
work of administration,(like meeting with
solicitors, accounts and banks etc.) which is
gradually becoming more and more nessecary.
Any constructive advice would be appreciated.
Need I say who the administrator is.
Enjoy the journey, its half the fun.
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Reply: 1
From: Dale Gatherum-Goss


I have seen similar situations on many occasions and the most common solution is to agree (in writing) that the administrator will be paid a small fee for the hours that he/she contributes over and above a certain number.

That is, the agreement might specify that you contribute say 10hours per month and not be paid. However, if you work more than that 10hours, then, you will be paid an amount of $xx.xx per hour from the other partners. Or, from the resultant profit split in the future.

Now, having said that, I have also seen the role as a shared role where each partner takes turns to contribute time and this works best simply because you all get to learn new skills and appreciate the trouble required to be a successful PI.

At the end of the day though, it is issues like this that normally split partnerships. So, document everything and PYA (protect your arse)

I hope that this helps and good luck.

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