Concerns for the Silent Partners

Concerns for the Silent Partners

Concernsfor the Silent Partners

Thetwo silent partners are highly concerned about the profitability ofthe PedalFaster businessthey are involved with us. This is because they are not activelyinvolved in the running of the business, but the results of thebusiness have a direct impact on their financial results. That is whythey are arguing that the profits of the business have been too low.Therefore, their main concern is whether the business will make moreprofits or not, especially after the experience of the economicdownturn. The two silent partners are concerned that the costsincurred by the business in paying the part-time employees togetherwith the full time one, may lead to losses of low profits.Anothermajor concern for silent partners is the operational efficiency ofthe business in if we hire more employees at the time when sales arenot high. The two silent partners want to know how the rehiring ofthe part-time employees will impact on the financial outlook of thebusiness. The concern is valid because the silent partners are mostlythe financiers of the bicycle business. In this regard, they areconcerned that their inactive nature in the business may be giving usthe opening to mismanage the business.Atthe same time, silent partners are concerned about the decisionmaking processes in the business. They are concerned that thedecisions we made about rehiring the part-time employees has a directimpact on the utilization of their financial investment in thebusiness. They think our decision will increase costs, which willresult to losses, not only to the business but also to the silentpartners. Therefore, we should involve them in making key decisionsabout the business, not just in hiring employees.