“
Well I
know Southampton very well. When I worked at the factory we lived
near the common so were quite central. I’ve known Arthur Glone for
two years. He acted for me when I sold our house and when I bought
the one in Small End. When I called him last night I asked if he
had drawn up any partnership agreements before and he said he had.
He told me that some can be very complex but they can also be quite
simple, it depends on the number of people involved and how complex
the agreement is. I’m sure ours will be one of the simple ones
Bob.”
“
I
should think so. We’ve agreed on the split, there are only the two
of us and we have little to start with. That’s it, I
suppose.”
“
He’ll
probably raise other things we should consider. Lawyers usually
do.”
Bob kept a
close eye on Ken’s driving, particularly when he entered and exited
the motorway. He drove just as the driving manual suggested,
speeding up on the ramp. It was interesting to look for a driver’s
mistakes almost as good as a taking a driving lesson.
They arrived
at the lawyer’s office ten minutes early and the receptionist asked
if they would like coffee or tea. They both took coffee and ate a
couple of biscuits. The lawyer came out of an office as they were
finishing.
“
Welcome
Ken. I think that this must be your colleague. Hello. My name is
Arthur Glone. Please call me Arthur.”
“
Hello
Arthur. I’m Bob Barns. I guess that Ken’s told you that we want to
form a partnership, making toys.”
“
Yes, he
told me last night. It sounds an interesting venture. I don’t know
of another business like that around here. I think there are some
in London or up north but I’ve never dealt with one before. Let’s
hope you’re successful. Please, come into my office.
“
There
are several things you should discuss and agree upon before we word
a partnership. I’ll outline a few of them. The agreement should
name those in the partnership, the name of the business and it’s
address, the company’s fiscal year, the accounting method to be
used, the funds contributed by each partner, if new partners can be
added, how the partnership is to be dissolved. Things like that. I
have a form that will help you to decide. You can fill it in and
give it to me. I’ll review it and we’ll discuss any items that may
cause you trouble in the future. Then I’ll have the agreement
drafted. There is a glossary at the end of the form and that will
help you make your decisions.”
“
Oh.
This is a bit more difficult than I had expected,” said
Bob.
“
It may
sound difficult but it really isn’t. By making these decisions now
you can avoid all sorts of problems later.”
“
What
will all this cost?”
“
If you
already agree on most or all of the items and if it is a simple
agreement then it should not cost more than two hundred and fifty
pounds. But that is not a quote; it’s only a guess. I think you two
are likely to get along with each other so there shouldn’t be much
disagreement and my fees will be minimal. Here are the forms, one
for each of you. I suggest you write your answers in pencil then
meet and discuss what you have written. When you have agreed then
send the forms to me. I’ll go over them, we’ll meet and I’ll
suggest additions or amendments if there are any. Then I’ll have it
typed, you sign it and I’ll look after everything else. Then you’ll
have a legal and binding document linking you together.”
“
Well,
that sounds straightforward. Thanks Arthur. I’m glad Ken suggested
coming to you; you make things easy to understand. Can I have one
of your business cards?”
“
Of
course.”
Arthur ushered
them out. Luckily the rain had stopped but the wind still pushed
them around as they returned to the car.
“
What
did you think about Arthur, Bob?”
“
I liked
him and his form looks pretty straight forward. I can fill mine in
during the next night or two. When do you suggest we meet to
discuss it?”
“
Saturday or Sunday. I’ll do mine when we get back from
London.”
“
Let’s
do it Sunday then. How about Sunday afternoon, after I’ve finished
my driving lesson. That would be around four o’clock.”
“
All
right. Why don’t you come to our place and have dinner with us.
Mary is anxious to meet you.”
“
That
would be very nice. Thanks I’d love to. Okay, what do we do
next?”
“
I want
to go to a shop I know that sells second-hand equipment as well as
new stuff. That’s where I hope to buy the routers and
saws.”
“
Okay,
and from now on we’ll share all costs. Or, more correctly, I’ll pay
51% of the costs and you pay 49%.”
“
That’ll
be a bother, there’ll be a lot of expenses. Do we always have to do
that?”
“
Of
course, but we need only do it at the end of each month after all
the expenses are added together. Just keep all the
bills.”
“
Okay.”
The shop had
several routers and Ken chose three small ones. There were several
band saws but there were only two of the kind he wanted. He bought
them and asked the salesman to call him if more like the ones he’d
chosen came in. He also bought two new bands and paid for the lot
using his credit card.
“
I’m
glad they have the routers. That’s what I need to make the hedges.
The jig to make them is going to be a bit more complicated than I
first thought. It’ll have to be adjustable, I think, because we
might want to make different size hedges one day.”
Next they went
to a radio shop and Bob asked if they sold cordless phones.
“
We have
four models, for large or small houses. How big is your
house?”
“
I want
it to go from the house to a workshop in the garden. About thirty
yards.”
“
I’d
recommend this one. It’ll easily go fifty yards if there’s nothing
in between. It should do the job.”
Bob bought it
and they walked back to the car and put it in the boot.
“
I’m
paying for that Ken. It’s something I need for the
house.”
“
If you
are sure Bob, although I expect you’ll mostly be using it for
business. Or I will, since I’ll be the one in the shop and you’ll
be on the road.”
“
Not
until I have my driving licence and a car. Thinking about that, I
hope I pass the test first time. Worrying about that keeps me awake
sometimes; I’ll be glad when it’s over. Now, where shall we go for
lunch?”
“
How
about fish and chips? There’s a shop I often went to. It’s supposed
to be the best in town and it has room at the back to
park.”
“
Okay.”
They ordered
cod and chips, added malt vinegar and salt, then ate them in the
car. Afterwards they drove to a pub for a pint. “This is a nice way
to do business,” Bob said, as they entered.
They
drove to Mr. Smyth’s office afterwards and told him they wanted to
trademark the name “
Small End Wooden
Toys
” for a business they were starting.
“
I don’t
think you’ll have any difficulty with a name like that, it’s not
likely that anyone else would already have it but I’ll have to
search the register to be sure. I’ll need a couple of days to do
that. I’ll register the name for you if it’s available.”
“
How
much will this cost?” asked Bob.
“
About
twenty five pounds.”
“
Okay.
What happens after you’ve trademarked it?”
“
I’ll
send you a statement saying I’ve registered the name for you. You
should take it to your lawyer and ask him to explain the Business
Names Act or you could look it up in a library, it’s not difficult
to understand. Okay. I’ll need your names and addresses. It’s a
limited company you’re forming?”
“
Yes”
Ken said. “That is, we own the company and we hold all the
shares.”
“
All
right.”
Bob gave him
one of his business cards and Ken wrote his name and address on a
pad of paper the agent provided.
“
I’ll
send you an invoice and after you’ve paid that I’ll give you the
signed registration form.”
They thanked
him and walked back to the car.
“
Should
we read the act or ask Arthur to explain it Ken?”
“
Just
read it. He said it was easy to understand. We have to keep our
expenses down if we want to be profitable.”
“
Yes,
I’m already worried about how much we are spending.”
Bob watched
Ken as they drove home and could reliably predict when he would
pull out and overtake another car and when he would hold back. He
felt that passing his driving test was probably more important than
how to conduct the business but he wasn’t going to tell Ken that.
They arrived at Bob’s place mid-afternoon.
“
Enjoy
your time in London Ken,” called Bob, as he opened the boot to get
his phone. “I’ll see you Sunday with my form.”
“
It’ll
look much like mine I expect,” shouted Ken, as he drove
off.
Over supper
Bob checked his lists. ‘Yes; fourteen train sets, five farms and
I’ll soon have twenty villages. I’ll have to make farms next.’
After supper
he checked what he had in his shop, muttering to himself, ‘don’t
need more paint or glue, but need more hooks. I should list what
wood, paint and things I buy for the records in future. No. don’t
have to do that, the bills will tell me. I’ll have to check every
day what’s in the shop so I don’t run short. No, Ken will be doing
that.’ He wrote down what he had to buy and put the paper in his
pocket. ‘I’ll order it by phone, they know what kind of wood I
use.’
Then he
remembered his cordless phone, returned to the house, poured
himself a mug of tea, took it to his easy chair and opened the box.
The instructions couldn’t have been easier. All he had to do was
insert the telephone jack and the electrical plug into their
sockets; the extension only needed electricity. He plugged them in
so the batteries would charge. ‘I hope someone phones me tomorrow
so I can find out if the phones work. Now, what’s the next thing;
read the traffic regulations or work on the partnership form? I’d
better read the manual, the forms can wait until tomorrow.’
After
breakfast Bob was fastening the door to the shed when he heard a
phone ring. It sounded different from normal and suddenly he
remembered his cordless phone. He rushed into the shop and picked
up the extension.
“
Hello.”
“
Hello
Bob. You sound agitated. Did I interrupt something?”
“
No.
It’s Peter isn’t it? I’ve just installed a cordless phone and
you’re the first person to call on it. I’m glad you did, for now I
know it works.”
“
Good.
I’ve some good news about your driving test. When I called them
yesterday they said there was already another person on the waiting
list. So I asked them to add your name. They’ve just called me and
said there have been two cancellations so they now have room for
you. It is on Wednesday, April 10th. At 10 am. Would you like to
take it then?”
“
Yes
please. Where will it be?”
“
In
Bournemouth, this side of the town. I know the roads they use so we
will go there and practice soon. Okay. I’ll phone them and book
it.”
“
Thanks.”
“
I’ll
see you at five tonight? You’ll be driving to the A31 and M27,
remember?”
“
Yes, I
do. I’m looking forward to it. See you at five Peter.”
Bob hung up
and went to the kitchen for his coffee. Whilst the kettle was
boiling he called the lumber yard and ordered the wood. “It’ll be
delivered tomorrow, before noon,” he was told. He’d put the wood in
the shed with the old wood from the shop. Ken could then organise
the workshop the way they had discussed when he came back.
After coffee
Bob made the shops, churches, post office and Community Centre for
the village sets. In the afternoon he cut the hedge blocks,
stopping just in time to wash and change his clothes before Peter
arrived.
They practised
exiting and entering the motorway every time they came to an
intersection and it soon became an easy routine. “Well you’ll have
no difficulty with that,” Peter said, “although I don’t expect them
to ask you to do it. But there will be questions on how you should
do it on the written exam.”
“
Is it a
hard exam?”
“
It
won’t be for you. Nor is it for most people. Most failures are on
the driving part, not completely stopping at stop signs, failing to
signal, driving too close or too fast and so on. You don’t make
those mistakes and you park and do three-point turns without
difficulty. You’ll pass first time Bob. Wait and see.”
That cheered
Bob, although, by now, he was fairly confident he would pass. The
drive home was pleasant; he even had time to take a look at the
scenery now and again. Once home, Bob heated a chicken pot pie,
changed back into his work clothes while it was warming, ate the
pie rather quickly then headed for the shop to continue working on
the villages. He stopped at ten, after the hedges, the hardest
part, were made. Then he remembered; he hadn’t looked at the
partnership form. ‘Well there’s plenty of time to do that before
Sunday.’