Starting a partnership business whilst on maternity??

danbexs

Hi,

I am a hairdresser, currently 5 months into my maternity period.

A very good and long term friend (also a hairdresser) and I have just been offered a good chance to take on a salon in a small seaside village, with no financial input needed as the landlord already has it established and running, however the old manager quit due to ill health, and simply walked out about a month ago. Leaving the salon closed and the village without a salon.

I have seen the appointment books over the last 12 months and it would appear that up to 6 months ago they where fully booked, and slowly drained off as the manager got more ill, it did employ 3 full time stylists and a trainee.

It will take time to rebuild this business, but I feel it is achievable.

The landlord just takes the rent, and we pay rates, services, and stock etc

It is a dream of my friend and mine to start our own salon, however I have some questions I wish to ask, regarding the following: -

1. As I’m currently on maternity leave with my employer, where do I stand regarding starting a business whilst on maternity?

2. With regards to going into business with a friend, I understand that it can cause problems if one is not pulling their weight!!, could the profit sharing be done on a percentage basis? IE I took sales of £600 and partner took £400, then after outgoings taken off, I would take 60% and partner takes 40% of profits. I think this could a good idea, but what are your thoughts on this, or is there another way?

I look forward to hearing your comments and thoughts on this matter.

Regards

Becky

joggyb

Re your first question - it will depend on what your employment contract says. There may well be clauses preventing you from setting up your own business, particularly if it competes with your current employer's business. Be very careful, otherwise you could be in breach of contract, and your employer could sue.:eek:

Re your second question - how you divide profits etc is entirely up to you, but you must get a partnership agreement drawn up stating what you've agreed. If you don't, then you will automatically be subject to the Partnership Act 1890, which means that - in the absence of express agreement between you to the contrary - you split everything 50/50.

If you're serious about pursuing this, I strongly recommend you have a chat with a solicitor so that you know exactly what your rights and obligations will be.

Good luck!