Employing the Opposition?

Employer

Ok
I have a business management issue.

Im self employed and fairly new (18mths) to the actual business side of things and Im learning fast.
So wanna run a scenario by ye and help me in my decision making..


I`m self employed in a business which for anonymity we`ll call a Coffee shop. In 18 months Ive gradually built up the business to pay the bills, myself and one person part-time.
In the same smallish town is another Coffee shop with a fella in exactly the same situation except he`s in business for 5 years...
He`s about to re locate around the corner to another premises saving himself €600 rent monthly..But hasn`t gone through with the lease signing and all that yet.
He has decided that he would like for me to employ him, based on the fact he cannot get staff to take a holiday, less hassles, bills etc
At the minute I don`t have the business to employ someone fulltime but with his promise to bring his business clients with him its very attractive!
Now I have a meeting over the weekend to discuss the actual figures etc so here`s my dilemma...
It would be essentially 2 businesses merging but only one set of bills and costs which would be MY problem,
As my business over the last 18 months might have been attracting his business clients would I be shooting myself in the foot by employing him?!?!
His reputation is he`s very good at his job but very slow and mine is fast and efficient
How much of a Trial run can I offer 4-6 weeks? Is that entirely up to me and not employment law?
How much info can I ask him about his business figures, client numbers etc within the realms of fairness and manners?!
Any other problems which I cant fore see?
Thanks for your time!!

pwd

He wants to work for you, in order to reduce his staff costs?
Would he be working in your "coffee shop", with his own shop still operating as a separate business?

Employer

I would be employing him instead of him re locating in Jan.
I cant afford to employ him but if his clients come with him its a maybe

pwd

So between you, you'd save money on overheads, but the risk would all be on your side? You wouldn't be able to evaluate that offer without knowing what business he would bring in.
Would it be possible for him to leave at some point and take your customers with him?
Why doesn't he offer to partner with you? You'd still save on the overheads between you that way, but the risk would be shared, and there would be more of a commitment from him to your business surely?

Voltex

I cant really see a problem straight out...he'll be working for you right?
Your competition will be removed right?
Your company will become the "known company" right?
So long as you make it straight out that your the Boss and you keep a tight ship..make all customers aware that your the company's principle and the buck stops with you.

Snowdrop

You really need to get proper legal advice from a corporate/employment solicitor. You will need a watertight contract where he at least undertakes not to compete against you in the same industry for a set period of time. There are other issues to consider such as cessation/transfer of his existing business name but a good solicitor will cover all the potential pitfalls in a contract.

stepbar

Your "competition" might be going out of business. Be very wary....

You can ask him what you like. If he doesn't want to comment then it's up to you to make the call on how important the information is to you. At a minimum I'd be looking for audited and management accounts. Future Projections, Bank statement, creditor / debtor listings and a confirmation that all taxes are paid would come next. Legals / valuations can be trashed out at a later stage.

Bandara

He's obviously aware that your destroying him and are better at what you do than he is, so he's trying to suit himself with the best deal he can get before he is busto and has nothing left.

Employ him, get his client list and then get rid of him asap and move on.

One less competitor to worry about, and I stress the fact that this guy is a competitor, don't feel the tinest bit of sympathy towards him.

Atlas_IRL

Hammertime wrote: »

He's obviously aware that your destroying him and are better at what you do than he is, so he's trying to suit himself with the best deal he can get before he is busto and has nothing left.

Employ him, get his client list and then get rid of him asap and move on.

One less competitor to worry about, and I stress the fact that this guy is a competitor, don't feel the tinest bit of sympathy towards him.

spoken like a true Gordon Gecko.

Atlas_IRL

Hammertime wrote: »

He's obviously aware that your destroying him and are better at what you do than he is, so he's trying to suit himself with the best deal he can get before he is busto and has nothing left.

Employ him, get his client list and then get rid of him asap and move on.

One less competitor to worry about, and I stress the fact that this guy is a competitor, don't feel the tinest bit of sympathy towards him.

Spoking like a true Gordon Gecko

OP if you have a good accountant get their advice and find out this guys reason/finances.

ghosttown

Be careful. You say he's going to relocate to save on rent, but hasn't signed a lease. Therefore, he keeps his business name open ? Or winds it up ? Is he paying his creditors ? Is he paying off his staff ?
Will people view it as a liquidation of convienience ? Have you mutual suppliers, what do they think ? Will you be tarnished by any mess he leaves behind ?
Too many questions based on the information you've given, therefore Stepbar and Snowdrops advices are the ones to listen to.
Eyes wide open lad !!

antoinolachtnai

At first face, you might need to acquire his business, and have a legal agreement in relation to this, including his new employment contract, in order to protect yourself.

There is a lot to what Hammertime says, but try and do this the right way if you can.

There is a real possibility that he will take shelter with you for a few months, then start up again once things look a bit better. He then takes some of your clients with him. He might go into partnership with someone from out of town too, making things more competitive.

I'd say you need some good legal and commercial advice on this.

Bandara

Employer wrote: »

Ok
I have a business management issue.

Im self employed and fairly new (18mths) to the actual business side of things and Im learning fast.
So wanna run a scenario by ye and help me in my decision making..


I`m self employed in a business which for anonymity we`ll call a Coffee shop. In 18 months Ive gradually built up the business to pay the bills, myself and one person part-time.
In the same smallish town is another Coffee shop with a fella in exactly the same situation except he`s in business for 5 years...
He`s about to re locate around the corner to another premises saving himself €600 rent monthly..But hasn`t gone through with the lease signing and all that yet.
He has decided that he would like for me to employ him, based on the fact he cannot get staff to take a holiday, less hassles, bills etc
At the minute I don`t have the business to employ someone fulltime but with his promise to bring his business clients with him its very attractive!
Now I have a meeting over the weekend to discuss the actual figures etc so here`s my dilemma...
It would be essentially 2 businesses merging but only one set of bills and costs which would be MY problem,
As my business over the last 18 months might have been attracting his business clients would I be shooting myself in the foot by employing him?!?!
His reputation is he`s very good at his job but very slow and mine is fast and efficient
How much of a Trial run can I offer 4-6 weeks? Is that entirely up to me and not employment law?
How much info can I ask him about his business figures, client numbers etc within the realms of fairness and manners?!
Any other problems which I cant fore see?
Thanks for your time!!

I've been thinking about this a bit,

How about telling him no, your not interested as you are happy that you are going to have most of his clients soon either way.

I reckon he's close to throwing in the towel so all he needs is a little push and you fronting up and showing your ready for a fight might do the trick.

I'd actually take the aggressive tack as he is a competitor and lets call a spade a spade you want him gone.

antoinolachtnai

Just because you have all the good cards doesn't mean you shouldn't play nice.

stepbar

Doesn't mean you have to play ball either. TBH OP I would concentrate your efforts on identifying his client list and going after them 1 by 1.

I'd forget about him and just keep doing what you're doing. Decline to hire him. And focus on your own business 100%.

Don't create hassle for you or your business. You're already doing better than him so he won't be adding value to your business.

Let your business do the talking.

gnxx

Deleted User wrote: »

I'd forget about him and just keep doing what you're doing. Decline to hire him. And focus on your own business 100%.

Don't create hassle for you or your business. You're already doing better than him so he won't be adding value to your business.

Let your business do the talking.

Good advice.

Just a small addition to the above comments. I've tried to hire entrepreneurs ( or absorb them and their businesses ) in the past. They were never happy as employees and hated interference in what they viewed as their business.

You sound like you are doing well on your own.

Sonnenblumen

OP

never employ the 'Opposition', much smarter to 'stick to your own knitting' and better to focus on your own business development needs.

Of course buying someone out is different, but hardly worth it here? Why take on something which is obviously sliding, and later having the hassle of looking over your shoulder.

Consider some extra promo work to attract new clients?

Darragh29

I would say to you OP, what does your gut feeling tell you to do, with regard to the character and intentions of this other person?!?

frobisher

See his figures then decide.

Employer

Thanks for the replies and advice

I had a look at his figures over the weekend and they weren`t great,
I have a lot more expenses but I`m making about 1/3 more each month.
I`m probably going to get 10% of his business when he moves anyway so I offered him a fairly basic wage and he almost took it which showed me his business is in a steady decline.
I didn`t think he`d have been happy as an employee and seeing his work for myself he would be too slow to make me any money never mind himself.
Now if I try to reduce my overheads and a little bit of advertising I should have a nice little business going forward,
Thanks again - some great advice there.