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Entering a lucrative partnership. How do I protect what's mine/ask what I'm worth?
Hi everyone. First time poster, longtime reader. 😎
I have owned a business in a niche sector since 2005. It's been my baby for all these years and I have put serious blood, sweat, and tears into it, even having innovated a few key products and services that my competitors now emulate. There are less than 5 companies in my field in the US and they are run by the "Old Guard." Their websites are old and clunky, they have antiquated business practices, and are content to remain small but profitable. Over the past few years I have explored ways to scale within the larger field my company fits into that have until recently gone unnoticed. I have been trying for years to partner up with a larger firm in my industry at-large but all have ignored my niche until now... because it is exploding.
I found a credible, vetted company willing and eager to partner. They want to give me what I am worth and are flexible with all options because they need me. My niche is an incredibly hard one to break into (and you also need to be bilingual in a rare language to do so...) and they are chomping at the bit seeing dollar signs.
I want to be prudent but at the same time I know my value. I have a team that is ready to work and too much business than I can handle. I need their manpower and money, they need my experience and connections.
What I want:
I want to be compensated fairly and seen as the expert in my field (and rightfully so). Here are some options I am thinking of:
- They continue to operate under their own branding but add this niche to their roster of services, liaising with the clients on the front end with us handling the work on the back end and receiving the bulk of the fees.
- They re-brand and we form a new company together, keeping everything 50/50.
- They market this niche and send clients to us, with us giving them a referral fee.
- Best option for me: we form a new company, I am Managing Director and I receive both a salary and a portion of all profits from this niche.