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Question

I have a grocery delivery business in florida and have been trying to negotiate with an actual grocery store in order to create a business relationship where my company either:
     A) buys all goods from their grocery store at a discount operating from inside their facility and storing orders overnight inside store or in my companies truck outside. This option allows my company a single source to acquire all goods from saving in running around shopping at multiple locations and paying a reduced price.
B) This option would offer the store 49% total ownership compare to our 51% in exchange for completely buying all goods from the store at cost. Profits would be split 50/50 and expenses would be layed out in great details which include all expenses based on a percentage of either gross sales or cost of goods maintaining a strick relationship of sales expenses and profits and yielding aprox. 19% net profits
CANNOT FIT EVERYTHING HOW CAN I ADD AND ATTACH AWORD DOC?

Submitted: 76 days and 2 hours ago.
Category: Finance
Value: $30
Status: CLOSED
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Optional Information

Country/State/Province of question: Florida

Already Tried:
1) Stores ownership seem interested in option B) above as well as myself but seem to be elaning to a 50/50 ownership of my company which from everything I have ever heard is the least ideal situation for an ownership to prosper since it creates an insolvable business relationship in the case of a dispute because there is no control. What are the actual implications of a 50/50 split versus a 51/49?

      2) Stores ownership have already mentioned a posible upcharge on the merchandize to
          cover finace expenses and other for aditional inventory costs and investments
        pertaining to the new business relationship something I don't see as fair depending      
        on the actual numbers because they will be profiting just as much from my business
        and their own. What is your opinion?
   CAN A DOCUMENT BE ATTACHED?

Posted by Milan Vaishnav 76 days and 2 hours ago.

Info Request

Dear Friend,

 

You can attach the work in the following way.

 

Click the chain-like symbol after selecting a text in the question text box. then a window will appear... browse the file and attach it...

 

Regards,

Posted by Milan Vaishnav 76 days and 1 hours ago.

Answer

Dear Friend,

 

I can now read the entire text.

 

First of all, you should not agree for a merchandize upcharge. It is certainly NOT A FAIR DEAL as the other business would also profit as much from your business.

 

NEGOTIATE HARD -- This is my straight advice. Because, in my experience and opinion, if they see little bit of business interest, they will fall in line.

 

I understand that the Stores are interested in option B. You can safely go ahead with 50/50 ownership and the relevent profit sharing patter.

 

There wont be any practical difference of 50/50 ownerships and even in case of 49/51, disputes would still be a disputes. You can create a partnership firm and safely operate in this.

 

In 50/50 or 40/51, even in case of such firms / partnerships / associations, a disputes leads to dissolution of business and partnierships.

 

If you are forming the s corp or something, you can still have 50/50 and "EXPRESSLY" keep a Veto Power. This means, that in even of stand-still on any issue, manegarial one, you have a last say. But here too, in disputes neither of 50/50 or 49/51 will help.

 

Coming back to your query again, going by 50/50 or 49/51 will not make any significanct difference. Your business and operations thereof will largely depend on what agreement you two enter into. \

 

You are advised to make it as comprehensive as possible..

 

hope the above helps...

Regards,

--------------------------------

If the above helps, kindly press the ACCEPT button or "Reply" if you need further help. Positive Feedbacks would be appreciated.

 

Milan Vaishnav,

Consulting Technical Analyst,

 

76 days and 1 hours ago.

Reply

   will try to forward attachment

Accepted Answer

Sure... Also see the reply given if sufficient..

 

Regards,

Picture
Expert: Milan Vaishnav
Pos. Feedback: 99.5 %
Accepts: 
Answered: 9/9/2009

Financial Advisor

Technical Analyst in Financial Markets -- Experience of more than 10 years in consulting

76 days and 1 hours ago.

Reply

For some reason that symbol appears disabled. All others work but when I click on that one it doesn't

Posted by Milan Vaishnav 76 days and 1 hours ago.

Info Request

dear Friend,

 

Type some text... Select the text and then you will see the symbol in usable form

 

 

Regards,

76 days and 1 hours ago.

Reply

for some reason that choice is like disabled cannot click on it. it appears but faint.

Posted by Milan Vaishnav 76 days and 1 hours ago.

Info Request

Dear Friend,

 

IT will appear disabled.

 

But first type some text. SELECT THE TEXT, keep it selected and then you will see the symbol appearing properly.

 

Regards,

76 days and 1 hours ago.

Reply

here it is. I thought you meant select "style" of text you actually have to selct by highlighting it

Accepted Answer

Dear Friend,

 

Saw your file. WHAT EXACTLY YOU WANT ME TO OPINE ?

 

DID YOU READ THE ABOVE ANSWER GIVEN....?

 

IF NOT , I AM PASTING IT HERE...

 

Dear Friend,

 

I can now read the entire text.

 

First of all, you should not agree for a merchandize upcharge. It is certainly NOT A FAIR DEAL as the other business would also profit as much from your business.

 

NEGOTIATE HARD -- This is my straight advice. Because, in my experience and opinion, if they see little bit of business interest, they will fall in line.

 

I understand that the Stores are interested in option B. You can safely go ahead with 50/50 ownership and the relevent profit sharing patter.

 

There wont be any practical difference of 50/50 ownerships and even in case of 49/51, disputes would still be a disputes. You can create a partnership firm and safely operate in this.

 

In 50/50 or 40/51, even in case of such firms / partnerships / associations, a disputes leads to dissolution of business and partnierships.

 

If you are forming the s corp or something, you can still have 50/50 and "EXPRESSLY" keep a Veto Power. This means, that in even of stand-still on any issue, manegarial one, you have a last say. But here too, in disputes neither of 50/50 or 49/51 will help.

 

Coming back to your query again, going by 50/50 or 49/51 will not make any significanct difference. Your business and operations thereof will largely depend on what agreement you two enter into. \

 

You are advised to make it as comprehensive as possible..

 

hope the above helps...

Regards,

--------------------------------

If the above helps, kindly press the ACCEPT button or "Reply" if you need further help. Positive Feedbacks would be appreciated.

 

Milan Vaishnav,

Consulting Technical Analyst,

Picture
Expert: Milan Vaishnav
Pos. Feedback: 99.5 %
Accepts: 
Answered: 9/9/2009

Financial Advisor

Technical Analyst in Financial Markets -- Experience of more than 10 years in consulting

76 days ago.

Reply

What are your qualifications. I was under the impression you were a CPA and could advice if these was solid business proposition

Posted by Milan Vaishnav 75 days and 14 hours ago.

Info Request

Dear Friend,

 

Please do not misunderstand but there is absolutely no clarity in your question. In the Word Document that you sent, there is absolutely nothing that can be commented upon. These are merely monthly profit calculations and all are ok and nothing abnormal is there.

 

Regarding the lack or clarity on 50/50 OR 49/51 issue, I gave my opinion above. From the questions that you want to ask, the word doc has no relevance.

 

From the questions that you asked, you yourself have answered a part of it that you are inclined to option two. I just threw light on clarity of 50/50 and 49/51 issue. There is no question on solid business proposition. ALSO, there is no room for any business prepositions to make.

 

You question had a very limited and ulclear scope to which I have answered to the best of my ability.

 

You can always get back to me without any hesitation if you need any further help.

 

My qualification and profile can be view in "Profile"

 

Please note that CPAs also have limited scope in your question.

 

Warm Regards,

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