I am telling you this from having been in your shoes: there will almost certainly be no "painless" exit if you value the friendship and the company still has po

I am telling you this from having been in your shoes: there will almost certainly be no "painless" exit if you value the friendship and the company still has potential. Work habits are a part of a person's general character, and now you've learned something about your friend. So you can either buy him out completely for its full long term worth in an optimistic outlook (really, enough not to insult his impression of how much he's contributed), or accept the way this working relationship has evolved - with you as a giver and he as a taker, or cut off your nose to spite your face and wind this thing down under some pretense of wanting to do something else. Personally speaking, I chose the last option; it's brought me great peace of mind and I don't regret it. It became apparent to my partner how little he was contributing and how much it took to keep the business running once I similarly became "too busy" to keep up my vast over-contribution. And guess what - he was accepting of that reality, and probably knew inside that as an individual, he just didn't have what it takes to make a life-changing business. I decided that the company was not worth losing such an important person in my life by making a grandiose "shape up or ship out" gesture, or the unbelievable stress of the inner resentment at being exploited. If you're confident in your abilities, you'll find another venture and be the wiser for it. A good business relationship can be the foundation of a great friendship, but far less often does the converse hold true.