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-   -   Community transparency? Necessary? (http://board.crossfit.com/showthread.php?t=89027)

Elizabeth Detelich 01-04-2016 08:35 PM

Community transparency? Necessary?
 
A friend of mine used to own a box but broke away from the partnership. He still receives calls from the city that the current box owner is grossly overdue with utility payments, etc and has tax liens on the property; however, the box continually markets to other affiliate owners on how to grow, etc.

From an outsider's perspective, it's completely unethical but I suppose I only know one side of the story.

I don't really plan on saying anything; I just can't get my mind off it for some reason.

Just looking for opinions if anyone is willing to offer them. :)

Thanks and happy new year!:)

Sean J Hunter 01-04-2016 09:40 PM

Re: Community transparency? Necessary?
 
That's a tough one,

Just cos a business has a poor balance sheet, doesn't mean it's not a successful operation. However the city calling implies they're not handeling their negative balance sheet well...perhaps. Alot of this information is second hand...

it could be as simple as the leaving of a partner, and them taking their capital with them, left the business in a capital hole, that' they're digging their way out of.

You'd need alot more information than this to really decide if the company is trading reclessly, and even then, if the consultancy service they'e providing are valid......those you can't teach. ;)

It's pretty common for small business to be under capitalized, and to borrow working capital from its creditors from time to time....not saying it's a good idea...just saying it's pretty common, and some would even say a necessary evil of running a small business.

What where your questions exactly...

Sean

Alex Burden 01-05-2016 02:12 AM

Re: Community transparency? Necessary?
 
Quote:

Originally Posted by Elizabeth Detelich (Post 1259675)
A friend of mine used to own a box but broke away from the partnership. He still receives calls from the city that the current box owner is grossly overdue with utility payments, etc and has tax liens on the property; however, the box continually markets to other affiliate owners on how to grow, etc.

From an outsider's perspective, it's completely unethical but I suppose I only know one side of the story.

I don't really plan on saying anything; I just can't get my mind off it for some reason.

Just looking for opinions if anyone is willing to offer them. :)

Thanks and happy new year!:)

If a partner has left the business then he/she shopuld ensure this is made known to any legal organisation, the state, tax office, facility owners and in some cases the city and so on ASAP otherwise they will still believe that he/she is still an owner thus accountable for any debt. Sometimes this is overlooked or missed and can cause allot of issues for the previous partner.

If all of this is taken care of and the partner no longer has any legal ties to the business then he/she can politely give them the silent finger.

But for some reason he/she was contacted because they still believe he/she is co owner, so something is missing or taking time to change in their records.

Any business can run well and grow but they might not make any money! that is when they need to go back to the drawing board, calculate the business model and make the adjustments they need to, to bring them into the plus figures. their costs might be high and the membership fees too low thus not covering cost.. or salaries are too high. This is easy to fix but action needs to be taken ASAP to stop it escalating otherwise it will only lead to one thing....


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