Should i make a back-up plan in case my business partner bails?

Me and a friend had been talking about starting a business. We pretty much both agreed on the type of business and i wrote out a business plan and got some figures on how much it would cost us to start it up and how long it would take to make a profit. i estimated we'd need about 30k to start. I am in the military so we agreed to start in when i get out.

I started some saving stuff and am putting away 500 a month so buy the time im out ill have around 21000. I am also getting books on the subject and am going to major in business just to have more knowledge.

He's freelancing for people which is fine but he's cheating himself. He's doing a lot of work for free and is also spending his money on equipment so he's not really saving any. He says its fine because he's getting exposure but idk. I told him that he should start charging a little more because between gas, time and equipment he's basically paying to work for other people.

He really wants to start this business and i think he's serious but i just don't think he's thinking long term. He says that its good for him to get te exposure and experience but in the long term i think ill come back with 20k ready to start a business and he wont be able to contribute.

Should i make a back up plan for myself just in case?

mtwaites2015-11-06T08:24:07Z

It is hard to know exactly what to do. You should meet with your friend, and see if he is serious about this. You should both write up a contract and both sign it. This will make it more legal. Also, you should have a back up plan too if your friend decides to bail. It doesn't sound like he is that serious if he is doing what he is doing.

Bob2015-11-06T02:30:09Z

Definitely you need a back up plan. I would also suggest you reconsider whether or not your friend is someone you should be going into a business partnership if he isn't working towards your goals. Finally, thank you for your service.

Elaine M2015-11-07T11:42:52Z

Yes, absolutely. I know of six partnership businesses among people I know and all of them ended up going under due to issues between the partners.

?2015-11-06T02:27:17Z

doesn't sound like a good idea, nothing ruins a friendship like business transactions going bad. If you go forward with this, make sure you go together to a lawyer and draw up a contract that you both agree with to cover all issues that could arise including each persons rights and responsibilities

Biff2015-11-06T05:21:35Z

tell him - in order to become a partner with you, he will have to come up with X $Dollars AND prove he can make his current business profitable

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