REVISITING THE BUSINESS FORMAT John and Azina survived the problem with the bad debt and large overdraft. However some months later while trading was good and the list of customers growing, cash flow was a constant problem and a constraint on growth. John was depressed about the constant difficulties of monitoring the cash situation. John took some time off to attend a reunion of his class at university. The weekend went well and unexpectedly he bumped into an old friend who had been a mature student. When Mike Cowley graduated he had started his own business offering systems advice. It had done well but recently he had been offered a large sum by a national organization to buy him out. With some regrets he had taken the offer. The business had been his life but he was suffering from arthritis and found the physical demands of travelling too much to cope with. Now 60, he thought it was time to retire. He had been offered the chance to stay on as an advisor but as he said to John. he had been his own boss for so long he didn't feel he could enjoy working for someone else. Mike was very enthusiastic about John and Azina's venture and gave John some useful ideas. John found the chat with Mike very helpful and he arrived back home feeling much more positive. He explained to Azina. Old Mike knew the problems we are up against. He thinks we could get a better. deal with purchasing from a supplier in Birmingham. He told me to mention his name. He's often down this way visiting his daughter and I told him to drop in any time. It was good to be able to talk about things to someone who understands." A week later Mike did drop in at the shop. He had brought the names of some contacts he had in the area. Over coffee he told them how much he missed the challenge of business but he knew he could not have continued with the travelling. Jokingly, John told him he could share some of their headaches. To his surprise Mike took him seriously.

'If you were ever looking for a business partner who could bring some cash and some advice. I'd be interested, he said, 'but I could not take on the day-to-day work. I'm just not mobile enough. After he had gone John and Azina looked at each other. They had not considered the idea of going into business with anyone else but the more they thought about it the better it seemed. There were some problems however. Not the least of these was thinking out what business form would be the best. John was concerned about the need to pay Mike an income. Could we pay him a salary or interest? With our erratic cash flow it would be difficult to meet a fixed commitment." 'He would want to take an active interest in the business', thought Azina, 'and his contacts would be useful, but I would not want to lose control ourselves after all this effort."