Need Advise: Business Decision

[Gammzy98]

Hey everyone I was wondering if anyone could give some perspective/advice on this. I been developing a product for over 3 yrs by myself and it recently went to market around February of this year. I buy all the parts needed and put them together at home. It is doing pretty successful, and I have made revisions of the product to increase sales. Everything was going fine and I was managing all the orders by myself. Last month I received a significant amount of large orders from a company. I knew that I could not fulfill all the orders do to capital so I went to one of my best friends who I knew for years. I told him the situation and I suggested only a small batch of the orders in exchange for a % of the net profit of the orders (while giving him his original amount back as well). We agree and eventually come to a %. However, there seemed to be a misunderstanding. Apparently he thought the money he is putting into is long term, and the % is for all orders in the future. If it was long term the % would of been much lower since I do all the work, but he said then he wouldn't of taken it and then this whole situation would not of happened.

We got into a big debate about this. I tried to explain to him that it was only for this batch, and we part our separate ways after this and that I have every right to since it's mine. I gave him an even generous offer % for the batch just to show that my intention was never to screw him over. The way he is looking at it though is I want to dump him and do it myself. He took the offer but still thinks that I am in the wrong. This pretty much ruined our relationship.

We both did not communicate well in the beginning, so I always thought it was short term and he thought it was long term. Everything was discussed in person with no writing except for the final offer we agreed to and signed.

I keep thinking over and over if I made the right choice. Like shouldn't I have a choice since its my product? How can I screw someone over if it is my product? I do all the work and the only value that was brought was just the small portion of capital, which would allow me to gain enough capital from the profit to fulfill more orders by myself. It just bothers me because I never thought it would come to this and I really care about my friend. Just looking for everyone's perspective on this. Thanks.

Real friends don't fall out over stuff like this imo. Not if it's a genuine misunderstanding and there was no deliberate misrepresentation on your part.

There's not really any advice we can offer as it's said and done now. Hope you manage to sort things out with your friend.

[Play]

Even if it's friends (or family), it's always a good idea to put things in writing. Can be as as short as one A4 page, everything laid out clearly, signed by both - that way you can prevent such issues arising.

Right now, I'd just give your friend some space, and let the situation cool down. I'm sure over time he will realise how silly this all was, and move on.

[oompaloompa]

Your friend either genuinely or deliberately misunderstood.

If you think about it though, they may feel used, because throwing all your work on to someone during a busy time, even if the pay is better, is not as good for most workers as a long-term, regular income, and your friend may need/want that...and feel like this is a cheap way to hire someone, a bit like the zero hours contracts some people dislike.....also their hopes might be to grow or join the business alongside you and be a partner, they may have seen it as an opportunity, but you just wanted a one-off helper...

From your point of view, who cares, apologise and if they do not want to be friends, oh well...

and get it all in writing in future. The worst disputes are between friends and family and verbal agreements, haven't you seen Judge Judy?

[mine]

One of life's most important rules for maintaining good relationships: Never lend or borrow money with friends or family.

[BaggaDonuts]

Originally Posted by mine

One of life's most important rules for maintaining good relationships: Never lend or borrow money with friends or family.

Also, never go into business with friends/family. Avoids all this madness.

You should have hired someone for $10/hr to put the stuff together, and taken a business line of credit or credit card advance to fund the bigger order, since you could've paid it back fast.

No offense, but your friend is being greedy if you already paid him his $ plus a fair return for lending you the money. You are likely better off not knowing him if he's going to be a dick about trying to scam a portion of your bread & butter away for a few bucks.

Good luck

[rsot]

Sound advice has been given OP - the decision is to be done