Simone is a successful and wealthy entrepreneur. Simone met Paula at Paula’s horse training facility. Paula took care of Simone’s horses and they became friends. Simone and Paula went to London together. One evening during their stay in England, while applying nail polish, Paula layered a raspberry colour over black to produce a new colour. When they returned from England they tried to recreate the purple colour that Paula had made while they were in England. Having just read a book about the Great Plague in Europe, Paula called the colour “Plague”. They created new colours calling them “Bruise”, “Mildew” and “Oil slick”. Later, the two created other colours with names like "Deep Secrets", "Dark Slick", and "Black & Blu", and titled their concept "Classic Revamp".
Simone stated, "This seems like a good thing; it's something that we both like and it isn't out there. Do you think we should start a company?" Paula responded, "Yes, I think it's a great idea." They had to produce and market the polishes but never discussed any business arrangements.
They used Simone’s home as a laboratory and jointly experimented with different nail colours and took pictures of their mixing sessions. Tasks were not allocated, and they did the market research together. They also worked together on a logo and advertising. They met with a graphic artist to create a trademark and secure a trademark. They discussed visiting chemical companies and hiring people for the business. Simone used her contacts to obtain capital from an investment company and neither one invested their own money in the business. They hired employees. They agreed to build a business and then sell it.
Simone told her housekeeper that “This is our baby. This was Paula’s idea in England, but I have the money, business experience and contacts to make it work. I will sell this business for R50 million to one of the big cosmetics companies.
After a few months, Simone started edging Paula out of the business. She discouraged Paula from attending meetings with the nail polish manufacturer. Simone also hired a marketing specialist as "chief operating officer" without Paula’s knowledge and consent. A few months later Simone “instructed” Paula not to attend business meetings or to deal with employees or clients of “Simone’s business”.
Advise Paula