Contour Enthusiasts Group Archives Forums General Common Interests Business Ethics

I started a general contracting business with 3 other friends a little over a year ago. I took care of all the accounts, as far as obtaining them (atleast 80%)and CS/QA (100%) while still taking on my "fair share" of the primary work load.

Now, I've been offered a sweet gig in West Palm Beach, FL with an established construction firm. My partners are willing to buy me out of the business, so everything should be fine..... right?
Wrong. Every single account I've told about the change is PO'd big time. Basicly they only know me and know what to expect from me and aren't going to deal with my partners without fishing around for new contractors.

Is it ethical to still sell my share of the business to my partners knowing this? Worst case scenario is they loose every account. Even a good case is they have to drop their prices to retain the business we already "have".

I feel SOL at this point and feel like I have no other choice but to stay where I'm at

remember that these are your friends. When handling an ethical dilema think about how you would feel if you were one of the people affected by the decision about to be made. What if you were one of the friends that was buying the business?

Maybe a better thing to do is reduce your work-load to part time status. During this time you can work the other two guys into what you are doing. The clients you have contracted would get a chance to meet and work with the other two guys, and they might not be so POed about your leaving. Your clients should be able to understand that while they may like working with you, they are buying your company's services and not you in particular. All the clients really want is safety and security of knowing that they will get the same service when you are gone. As cool as you may be, I don't think they are necessarilly worried about missing your wonderful personality.

lol, It's not that I think they like ME.... (I know of a couple of people that really don't care for me, but like my work ethic) it's what I can get done. I meet if not beat schedule deadlines and I follow through with what I say I will do. In construction, that can be hard to come by.

You made some good points, thanks.

well - there is a simple solution to your problem. Tell your soon to be ex partners that some of your clients have expressed some reservations about staying with your company as soon as you leave. They dont need to know who etc.


Then they can decide to buy your stake, or send you your allotment of the profits each month as befits a shareholder.

Personally, I'd tell your current partners that the clients will probably look around when you leave. If the partners' response is, "That's business, we can handle it," then you're free and clear. If they get worried, then I'd try a couple of tactics to get the clients to stay... maybe something like:
- Meetings with the clients and their new contact at the company to make the clients more comfortable
- New contracts that include a price cut in exchange for exclusive rights to their business for a period of time

Whatever you decide, let us know how it turns out.

I see both options presented here as potentially viable. It is not unusual when a "key man" leaves a company for that person to continue to be involved for a transitional period. However, an up front statement that the entire book of business is in the air is also honest and ethical.

For a moment, look at your partners with a cold hard eye. When you are gone, will they continue to perform the work at the current level of quality when promised, or have you been consistently bailing them out?

If you have been bailing them out (outside of you doing your share of the work... they WILL have to hire someone or get another partner to maintain the same workload), then a transitional period will only disappoint the customers when you're no longer bailing them out. I would simply leave it with an up-front statement.

However, if it's more that they know you and because you handle to CS/QA, you're the face of the firm that is getting credit, a transitional period where a new face (to the customer) for the same work they have always received can allay their concerns and feeling they need to reanalyze their decision.

Before selling out and leaving completely; introduce your accounts to your partners and help develop their new working relationship.

Again, thanks for the replies!

Time is an issue with this new career in Florida. I talked to the owner for over an hour today about my concerns about leaving so soon. He respects that I want to ease out of my company, but he also is loosing money by not having "my" position filled. He said that he understands if I cannot come to Florida to start in a week, but I need to let him know by the end of the day, tomorrow which way I choose to go

There is simply not enough time to ease out of my company, and I cannot sell my interest in it knowing what the clients will do upon my departure. ::sigh::
I'm going to get together with my partners tonight to talk about the situation. At the very least, a restructuring is in order.

Ah, what difference a day can make

I had eceided this morning that I couldn't take the new job offer and to stay where I am at for now. I called the owner of the company to let him know what I had decided. He understood my reasons and told me that when I do get into a position to be able to work for him, he'd be happy to hire me at that time

Now I'm going to follow all of the good advice I got from many of you. I'm making my prtners come along and become known in all aspects of this business so that this wouldn't be an issue anymore.

I win, they win and I get a good buy-out price when the time comes Thanks for letting me vent and throwing in the good advice!