Current situation: Gf works with her dad here in CA. They are brokers of a product, more or less. They have strong relationships with their suppliers and a pretty large book of business.
They are 1099 contractors for a company in CA, but that company has no office here and is run out of FL. They are the ONLY contractors for this company, and the company exists solely because of/for them. The company owner, based in FL, and gf's dad started this relationship about 18 years ago when he (owner) wanted to get a west coast operation going. The owner has a large business presence in the industry in FL and has some relationships in CA, but no business interests other than the company setup to have gf and her dad as 1099 contractors.
Gf and her dad keep 47% of their commissions. FL company keeps 53%. For this, they do all of the record keeping (invoicing and collections). They also have a strong financial makeup which allows them to have good credit standing with the suppliers here in CA. For this, gf's dad has worked for 18 years at 47% more or less (it was actually 50/50 a few years ago and switched).
Gf and dad are not happy with the service they are getting from the FL staff. Mostly the invoicing is slow and their customers are complaining. I find it ABSURD that they are giving up 53% of their profit for what they get out of the deal.
My idea? Buy Quickbooks, do the invoicing myself, and cut FL guy out completely. The only thing missing is a line of credit, but I think that could be handled without too much trouble. They have very few problems with non-payment, so there would likely be very little float, if any, most of the time.
So, what am I missing? Why is this not as easy as it looks? Am I going to shoot myself after trying to setup a business like this in QB?
To answer some of the questions that may come up....
If they were to give the guy in FL a one-finger goodbye, I doubt seriously that they would lose any business. All the clients know gf and her dad exclusively.
Gf and dad are one of the suppliers largest clients, so I also don't think this would effect supplier relations (other than the credit aspect, possibly) because they also deal almost exclusively with gf and dad....and dad has been bonusing an employee at the supplier for years for good pricing.
They are 1099 contractors for a company in CA, but that company has no office here and is run out of FL. They are the ONLY contractors for this company, and the company exists solely because of/for them. The company owner, based in FL, and gf's dad started this relationship about 18 years ago when he (owner) wanted to get a west coast operation going. The owner has a large business presence in the industry in FL and has some relationships in CA, but no business interests other than the company setup to have gf and her dad as 1099 contractors.
Gf and her dad keep 47% of their commissions. FL company keeps 53%. For this, they do all of the record keeping (invoicing and collections). They also have a strong financial makeup which allows them to have good credit standing with the suppliers here in CA. For this, gf's dad has worked for 18 years at 47% more or less (it was actually 50/50 a few years ago and switched).
Gf and dad are not happy with the service they are getting from the FL staff. Mostly the invoicing is slow and their customers are complaining. I find it ABSURD that they are giving up 53% of their profit for what they get out of the deal.
My idea? Buy Quickbooks, do the invoicing myself, and cut FL guy out completely. The only thing missing is a line of credit, but I think that could be handled without too much trouble. They have very few problems with non-payment, so there would likely be very little float, if any, most of the time.
So, what am I missing? Why is this not as easy as it looks? Am I going to shoot myself after trying to setup a business like this in QB?
To answer some of the questions that may come up....
If they were to give the guy in FL a one-finger goodbye, I doubt seriously that they would lose any business. All the clients know gf and her dad exclusively.
Gf and dad are one of the suppliers largest clients, so I also don't think this would effect supplier relations (other than the credit aspect, possibly) because they also deal almost exclusively with gf and dad....and dad has been bonusing an employee at the supplier for years for good pricing.
