I have been in the IT field for over 12 years and self-employed for 2 of those. I built a great reputation for my services and about 7 months ago, I fell into a great opportunity to take my IT services to a retail storefront/pc repair shop servicing both home users and business clients. With the help of a (supposed to be silent) partner and his investment, we purchased an already established location of 7 years, changed the name to my business name, and got everything for the store including the inventory for 100k. We put up 50k each, and I was to run the day to day and work the shop, he was to help bring in clients from his contacts and help with any other financials if needed.
Because our purchase price of the location and the opening purchases totaled our entire investment, we continued to pay for the bills, payroll, inventory, and day-to-day operations out of the cash flow from the retail side and support contract side.
Our first months were pretty decent. I had it figured that to break even on a monthly basis, we needed to net 12k a month. First month we net 8, second 14, third 24, fourth 22. We were on a roll and in November and December we hit a standstill. My partner was paying back large amounts to the original debts and left us high and dry at the end of December. We were practically broke. Then he had a heart attack.
He is okay, but now his wife has stepped in and decided that she needs to run everything her way. She has no experience in the field, nor does she know how the place operates. It has become a nightmare to the point that all of my employees are ready to walk. I have tried to talk to my partner, but he is unable to return any of my calls and will not speak to me. Not sure what the deal is. However, his wife has said numerous times, that she will leave if I buy them out.
The business is successful. We were just starting to get our sales team in order and this past month have had limited inventory, but still managed to pull in almost 30k in just services (all profit)! We are just about to get back in the swing of things except of the "wife" who has to control and approve every little item.
I know that her name is not on anything, unless she has a power of attorney for him. But I want her out.
The business in the second half o 2012 (since the store opened) has grossed 145k in sales. Netting a profit of 35k. The balance sheet shows us under with the original loans, and his part of the debt and or future profits have been figured to 65k.
I am looking for help on how to either get her off our back short of walking out, or maybe someone who would like part ownership in exchange of helping buy them out. Any help would be appreciated!