Sibling 50/50 sibling partnership, sticky situation need help?
I started a business with my sister 3 years ago as a 50/50 partner. I invested all of my savings and it was my business idea. I’m also the designer of the products we sell. During the past 3 years she has kept her current job and has been saving money. She puts in 10-20% of the work while I do most of it. She kept promising me she would leave her job when the time was right to focus on our business. It’s been 3 years and she hasn’t left her full-time job. Now she wants to leave her job and start another business with another partner while at the same time keeping her partnership with me. She told me she will include me in the other business she’s planning to start but we would both have half of her Half of the shares. I had agreed after multiple arguments but as time goes by I feel worse and worse. I don’t want to start another business but she won’t leave our company and it just feels like I’m in a big mess. I’ve tried talking to her but she doesn’t want to let go of her share of the company. I wouldn’t mind if she was a 50/50 partner but only focused on our company and did her part of the job. I’m so frustrated and I don’t if I should keep our agreement or keep fighting for a full stake of the company. What other suggestions are there for this type of situation?
This isn't a great answer, but hear me out. Ask to SELL to her your half of the business you share. Reverse psychology, perhaps. Maybe she'll realize that without you, the business is worthless, while without her it will run fine. But, still, get her to quote a price for half of the (soon to be bust without you) business. Give her time to come up with an answer, hopefully she'll realize the huge workload she'd have to perform to sustain the business. Get her valuation, then play that you are considering the transaction. Pause, then offer to buy the business from her for the exact same amount she asked. This would be a good time to state unequal workload, money/time investment, projected company value, etc.
I can expect the only outcome of this is to get her to reconsider her value to the shared company, and other people's livelihood. Maybe point out that if she goes into another business with the same amount of work ethics she's performed this far, it won't be a good outcome.
Either, best of luck!!