Business going down.

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Business going down.


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Old 01-17-2012, 10:50 AM
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Business going down.

Hi,

Iíve been running a software company with other two partners for last 4.5 years. I own 20% of the business and the other two partners own 40% each.

The sales division (manage by one partner) has been heavily underperforming for last one year and this has been dragging the business down. We had a numerous management meetings about what to do but without any success. I was suggesting a cost cutting and also to get rid of unproductive people (including the other 2 partners as they have only minimal contribution to the company revenue but taking great salaries). The other 2 partners were only saying that we need to work harder and try more different things and need to learn more. They donít seem to see the real picture (truth) of what has been going on. They seem to just hope that miracle will happen to save the business.

So the company has been going the way (down) the other two partners had decided against my plan and on my expense. Only my division generates the majority of the revenue for the business.

As a result of the wrong management we (3 partners) have not been paid a cent for last 7 months. We can only afford to pay the staff salaries.

So Iíd like to ask for advice how to deal with this mess. Iím thinking of cost cutting, selling the business or liquidate it.

Thanks,

Joe


  #2 (permalink)  
Old 01-17-2012, 11:06 AM
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Please update your flag here .

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Last edited by krish; 11-08-2014 at 04:20 PM.

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Old 01-17-2012, 06:36 PM
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Since the company does not pay employees, I would say, you have enough cost cutting done. I would try to sell it first and if that doesn't work - liquidate it.


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  #4 (permalink)  
Old 01-18-2012, 10:31 AM
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Hi,

Thanks to all your replies.

When we (I) started this business with the other 2 partners I was new to it and trusted them as they had business experience. But after a while I started to have doubts as the inability to bring sales and poor management was blamed on something else and not the real cause of the problems. It feels like going to school and learn every day. I always believe in hiring professional people but the others don’t. If I can’t do then get someone else better than me.

We are the reseller of the ERP solution from one of the world’s software giant. The same ERP solution is also sold by other business as well. I guess in total it’s being sold by roughly 15 companies in Australia. Some companies are selling well but not us. Why?

We’ve organised a few events, doing a cold calling, campaign and networking. But with minimum return.

As I see the partnership in business should be fair. It means each person should contribute to the business equally and also be accountable for that. The lack of sales is mainly contributed to the person’s inability to make sales rather than the market itself. If other businesses can sell why we can’t. Also the attitude is wrong as every month the person promises to make it up the next month and so on and it’s never ending story with no plan at all. If it’s me I would just leave the business and find another salesperson who can deliver. However I’m the minor shareholder and I can’t just tell him to go, which I’ve already tried but the other partner did not want this to happen.

The money we make are just enough for the staff and we’ve have not been paid for last 7 months. So even if I ask to be paid more because I bring more money into the business then it will be just on the paper as the future is uncertain.

Maybe I should just leave the business but on the other hand I really care about this company. If I leave the business how then am I going the get back the unpaid salaries for last 7 months? Is this classified as insolvency? Am I required to sell the shares to the other partners first or it can be anyone?

Thanks again,

Joe


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Old 01-26-2012, 05:53 AM
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Hi Joe,
I read your story. I am sure you guys have got the reason due to that your business is going downwards. It happens sometime, only cost cutting selling the business is not the solution. You have mentioned that your partners are not interested to see the real picture. Hmm it seems things are not going properly.
In that case I will suggest broke the partnership, I think if there is fire at your house, it is always better to leave the home.


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Old 01-28-2012, 04:18 PM
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Seeing that you are a minority owner, not much you can do against the wishes of your partners. Maybe cutting your loses and getting out would be the prudent solution.


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Old 02-20-2012, 08:51 AM
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Business going down can be raised by Hiring professional SEO for your company..They can bring your business on top of google search pages...And they will help in driving maximum useful traffic towards your website....


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