Giving up a chunk of my business

I know this may sound crazy but I’m having my accountant give my better half at least 50% holdings of my Powerwashing business. I surprised my wife the other day when I asked my accountant to change the ownership of my company to include my wife in for at least 50%. I’m leaning into giving her 51% on paper because of the potential to be able to bid some large jobs where a woman majority owned company has a better chance of winning the bid.

I know a Powerwashing company that did exactly this and he has won bids because of it. I guess the question would be for some as to why take this risk?
My answer is I’m very secure with my family and also if it gives me a leg up to win some bids I’m game.

So what do you guys think?? Smart or Crazy?

Its your business so I will not pass judgement either way. Can you make her a non-voting memeber or “silent” majority owner?

My wife and I are 50-50 partners.

Clark that’s where I’m at now. My family broke my nuts some at a shindig at my house this past weekend because of this and I kept saying “Half Eddie I want half” one for the old-timers on an Eddie Murphy comedy skit.
Seriously though it looks like I have to give her 51% because it has to be a female ran business… The joke of course is if something goes wrong and since she will be the majority owner I get to blame her;)

Common Dave let me hear what what’s on your mind.
To win these bids you have to have the company set up where it’s not only a female majority owner but they must show proof that they run the company… I’ll give you a little hint… Around 4-5 yrs ago I asked my wife to get more involved because wearing all the hats I was getting worn out… Best thing I ever did. My wife does every call today, books scheduling,cold calls,does all the mailers and I get to count the money and fix the machines and she keeps my guys busy so they working all the time… My wife prices out the jobs on the phone and she just keeps on going. She was employer of the year twice for a light manufacturing company years ago before she left for Estee lauder and she also booked bands at night for the recording studio for bands to record and she booked engineers and future engineers to come in together so the newbies could learn how to work the studio… My wife walked away from those last two jobs when she gave birth 17 yrs ago to our daughter Nicole. That’s when I started my Powerwashing business…

Today she’s working full-time again and loving it and keeping me busier then ever… And I have a need to stay busy… So we work great together… And at least half the day where apart because I go into my shop to tinker…

I put in alot of thought to this and it works every time I went over it… Together we form a powerful team and either one of us can run the company at any given time… And where partners anyway… And where different which is key…

even if you didt make her half owner and you got a divorce, you would probably end up owing her half anyway so i dont see what the big deal is.

who is looking at the owners name to see if they are woman or not in order to accept your bid?

if your idea of winning bids because of a woman owning are true, would it also be possible that you would lose some because its not a man?

Many large government contracts have to have a certain percentage of minority or women owned business doing the work. General contractors that win large government contracts are always looking for these types of firms. It’s most commonly referred to as MWBE

Good question Tim. I can say this that whenever we won a bid the only thing that’s checked are our insurance and workers comp info. They never checked to see who the share holders are of my business. If you bid for those other type jobs you have to prove that there female majority owned and they also work for the company in a management position…

My wife owns 50%. Your wife pretty much get’s 50% of everything you have anyway so it really doesn’t matter what the paper says. If it helps you get jobs, go for it.

It matters for certain type bids which is why I am giving my wife ownership. She has to be a majority owner which she will be @ 51% and you also have to prove she is actually working for the company in a leadership role. It gives us a leg up to bid for jobs that that minority or female owned will get first preference. It’s all about the “Benjamines”:wink: