Resources & Tools What sort of advisor for this?

Morning all,

After years killing myself as a high-earner full-time employee I'm considering joining a friend's business as her partner. There's risk in doing so, but also potentially bigger rewards. I've got a lot to weigh up (including what it means for my love of property - I sort of always thought I'd use my income to fuel property purchases to fund my retirement). I know I need some professional advice, but I'm just not sure who/what the profession, or if it's multiple! My area of comfort/knowledge is personal property, and beyond that, I'm a bit lost. Hoping to tap into the property brains trust as the first place I call home. Ha!

An example of the questions I'm hoping to work through with a professional:

- Helping me draft a proposal for a partnership, including salary and ownership options (if I can't at least match my PAYG income, it just doesn't make sense to leave my job, but also need a partnership agreement that is appealing from my friend who has spent many years building her business up to a solid base - really need some advice on ownership/share options etc)
- Understanding best approach to maximise move from PAYG to business to maximise tax position and not kill my options on buying my future PPOR
- Any other business structure considerations to ensure both my friend and I are protected in the case that disaster strikes, and we find that working together is untenable or something else happens that means we need to dissolve the partnership.
- Recommendation on business structure
- Legal docs drafting

In my dream world, there would be a one-stop shop for advice. Ha! But otherwise, I sort of feel like there might need to be a general business advisor (would be great to have someone who understand retail business), plus an accountant, plus a lawyer?

Any advice would be greatly appreciated!

Thanks
Lex

 

You’re not going to get everything from one person

I would suggest that you and your friend need to work out whether your goals for the business are compatible.

Do you have similar personal values.

Is your role replacing a position that was previously filled, helping expand the business. Or letting your friend reduce hours

My suggestion would be

Pre marital counselling
Get an experienced business adviser/accountant To see if the business can meet both your financial expectations etc

Then do a trial marriage work in the business for 6 months. At a salary. At the end of 6 months only if you are both 100% on board. Enter into an arrangement.

Look at how you both handle conflict.

Don’t assume that operating a business will alleviate your stress. There will be different stresses.

 

Why haven't you bought property by now?

 

It sounds like it is all legal advice to me, except for the part about borrowing.

 

As it's your friends business, I would have thought that they would be the one looking into the legal structure as it's all on them.
I'd assume the proposal has to come from them after you discuss basic details.
There's a lot to consider.
If you were killing yourself as an employee then you may be near death as a business partner/owner, as it's generally so much more demanding.
Although this also depends on what your expectations are, and your potential partners expectations too.
This could ultimately lead to friends being not so much friends in future, goals and work ethic have to align and things change over time.
At least you are thinking and planning well ahead instead of jumping blind in like most would do and then regretting it later.
Good luck.