Sign Partnership in Prolonged Breakup

JOANN AND MARLENE became business partners of a vinyl signshop. Both had worked before that time at Sudz ’n’ Brushes, a regional car wash chain. JoAnn had graduated from art school and was hired by the chain to make the many temporary signs all the locations used. She worked that job for three years, then bought a Gerber IVB, a plotter that came with one font — did I mention this was the late 1980’s? — and opened her own small sign business.

At about this time Marlene was hired by Sudz ’n’ Brushes to do their marketing. At one point, the chain’s signshop was down, but someone remembered that JoAnn, the previous signshop operator, now had her own outfit. Marlene worked with JoAnn during that period for the car wash’s temporary signage needs, and both felt that had been a good experience.

A year later Marlene, too, started her own sign company with all of the latest sign software and a new vinyl cutter. She and JoAnn began talking and soon JoAnn was using Marlene’s equipment to make easier, more interesting signs with the better software. In turn, JoAnn helped Marlene with the use of her Gerber plotter. The two became friends.

They soon realized that they should work together and formed a partnership, JoAnn designing and making signs, lettering vehicles, etc. while Marlene handled the business end: sales, buying materials, bookkeeping, etc. They worked out of JoAnn’s large garage to help keep costs down.

Their signshop became successful over the years and they made a comfortable living. Nevertheless, after about 10 years JoAnn had just about enough of working with Marlene. Her way of handling customers and suppliers was harsh and she could be downright mean at times. Berating vendors and even business partners was as easy for Marlene to do in person as it was by phone call. But when it came to something, anything she did wrong — and there were many things she did wrong — she would project her faults onto others, getting even angrier and more defensive.

Whenever JoAnn spoke to Marlene about being too harsh, Marlene always answered that one of them had to be the enforcer, a role that JoAnn was ill-equipped for in Marlene’s spoken opinion. She wasn’t necessarily mean to JoAnn, but was difficult to talk to.

As partnerships go, JoAnn was done working with Marlene, but hung in there a couple of more years. When she finally decided to tell Marlene she wanted to split up, JoAnn did so amicably, but Marlene wouldn’t hear of it. She didn’t want to split up and instead worked harder. Not kinder, mind you, but harder. Still, it was too late and JoAnn decided they were through.

JoAnn wanted to buy out her partner, but Marlene said no. They didn’t want to get lawyers involved. Marlene said since the shop was in JoAnn’s garage, she (Marlene) should get the company name, phone and fax numbers and split everything else. This seemed very unfair to JoAnn, since the company name, phone and fax numbers were the only things to appreciate. Remember: This was the late 1980’s and thus they had no website or email. Faxes were still rather new… Everything else to be divided depreciates, and as far as the shop itself, it was already JoAnn’s garage. It’s not like the building was a storefront on a main road.

Finally, after several more months of debating and working in the increasingly smaller space, just the two of them, JoAnn decided that Marlene could have the business name, phone and fax, and she would get everything else: computers, cutter, rolls of vinyl, all the supplies, customer files, desk, chairs, X-acto’s, all of it. The customers were up for grabs. And Marlene would have to leave in a month. Marlene agreed to the other terms, but wanted 60 days to leave. JoAnn was beside herself at the thought of another month of riding this out.

EDITOR’S NOTE: This story is an edited version of a submission by ST Brain Squad member Louise DiGiacomo, Signs of Art Graphic Design (Philadelphia). Thank you, Louise! If any of you who are reading have a suggested story for a future Real Deal scenario, please send it to [email protected].

Spencer O.
Colorado Springs, CO

When it is time to split, it is time to split! Take your reputation, if that is all you can get, and move on as fast as you can. If you were successful before, you will be successful again. You have learned what not to do in business and though it may be hard for a while, you will achieve a better quality of life. Enjoy your loyal customers and grow as fast as you want. Life is too short to stay in a relationship with a partner that makes your life miserable. Good luck to both of you. That is the “Real Deal!”

Lisbet A.
Guadalajara, Jalisco, Mexico

Rolf L’mao, I experienced a similar situation and decided to step back, leaving everything in my partner’s hands. It wasn’t easy to let go of the partnership, but I had to make a firm decision to separate. I trusted my experience completely and moved forward on my own. Very soon, I acquired new clients, and my previous contacts reached out. I built a network of clients and business partners that I’ve managed to maintain to this day. Shortly after, my partner’s influence in the industry waned, and she left.

Years passed, and I ran into her at an event. I was able to greet her warmly, as I had moved past that uncomfortable episode in my life. At that time, I wanted to focus on the positive aspects of that period because my partner also possessed positive qualities: extensive experience and the strength to make difficult decisions, which, perhaps, had she used them more effectively, could have led her to success.

Thank you so much for sharing such an interesting topic and for taking the time to read about my experience.

Louise D.
Philadelphia

[This story] really is true, and I’m (somewhat) shuddering thinking back to those years. Most were good, but as the saying goes, “All good things must come to an end!” And might I say I’ve been working on my own for the past 19 years and will most likely never have a business partner again. Lots of lessons learned.

Sergio A.
Uruapan, Michoacán, Mexico

First of all, I should say, partnerships are not a good thing. Everyone must have confidence in oneself and contract the number of employees they think necessary to run their own business.
In this situation my advice to JoAnn is to leave this bad situation as soon as possible, have confidence in herself and start all over again with her own money, and buy new equipment on credit if necessary. That would be better than this frustrating situation for a longer period of time. It’s better this way. BELIEVE ME!

Russell T.
Austin, TX

If either hopes to maintain relationships with their current clients there needs to be an amicable resolution that defines who gets which accounts/clients. Without that, much like divorced parents, they are putting their clients in the middle of their spat.

After that many years, the name, contact info and brand ID are the most valuable assets. Equipment is outdated and production can be outsourced.

I would remind Marlene that JoAnn was the one who originally started the business and controls the location. Marlene only brought equipment. Marlene should walk away with what she brought, as should JoAnn. They should go through accounts and divide evenly. Customers should not have to deal with bitter old business partners bad mouthing one another to get a client to choose a side. At the end of the day, the next project will go to whoever’s picks up the call (pre-internet) and if JoAnn gives up the name and number just to make it easier to part ways, she’ll find herself exactly where she was 10-15 years earlier.