Sunday, 21 March 2010

Never go into Business with Friends

Some time back I had my own computer shop, first few years things were going ok breaking even. I knew I needed to turn a profit so had my eye on opening another shop. A friend wanted in on the deal but had a few things to take care of himself.

A few years passed and my first shop was really struggling for a number of reasons, by this time as an act of almost desperation I opened the second shop as a partner to this friend.

I put the stock in he paid the set up costs. It wasn't enough to save the first shop, thankfully I had started freelancing and this was doing great. So we struck a new deal in that I'd kick back a proportion of this income.

The money from the first shop was still in the second shop. The 'friend' a year later then decided he didn't think things were working out so we went separate ways. I was quite happy with this as the freelancing side was doing really well but it was his call so didn't feel guilty.

There was sadly a sting in the tail. The second shop still owed a lot of cash to the first shop. Due to illness the liquidator never chased it but I now had the bank trying to claim on an overdraft guarantee (which I never agreed but that's another story), so if the friend failed to pay then I'd be potentially liable.

He failed and we're not friends no more:)

A convenient selective memory meant that his recollection of events meant he felt that he only owed a few quid despite the evidence clearly being many thousands.

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