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How to vet a potential partner?
artofmission
subscriber Posts: 1
My wife and I have a small startup SaaS business aimed at the non-profit sector. We`ve been open for just under a year now. We`re completely bootstrapped, and all the development and work has been financed by my software consulting business. If I had to guess, I`d say I have at least $100k of sweat equity in the business.
Now we have started to turn a profit! The business is growing, but not fast enough. Additionally, I see my competition heating up, and I want to grow faster to keep ahead.
Recently we were approached by a person who wants to partner with us. The way he sees it, he`s good at business development and sales, and I`m good at product development. If we partner, he could work on growing the business, and i could work on improving the product and adding features to stay competitive. It seems like a good match. Neither of us need cash out of the deal, so I`m not sure what the structure of a partnership deal would look like. In any case, my question is this: How should I vet this person to 1) make sure he`s legit, 2) make sure I can trust him, and 3) make sure we`ll get along. My other question is - how could (or should) a business arrangement be structured so that I maintain my interest in and control of the company without diluting our ownership too much while still making it worth his while? Thanks in advance for your advice!
Now we have started to turn a profit! The business is growing, but not fast enough. Additionally, I see my competition heating up, and I want to grow faster to keep ahead.
Recently we were approached by a person who wants to partner with us. The way he sees it, he`s good at business development and sales, and I`m good at product development. If we partner, he could work on growing the business, and i could work on improving the product and adding features to stay competitive. It seems like a good match. Neither of us need cash out of the deal, so I`m not sure what the structure of a partnership deal would look like. In any case, my question is this: How should I vet this person to 1) make sure he`s legit, 2) make sure I can trust him, and 3) make sure we`ll get along. My other question is - how could (or should) a business arrangement be structured so that I maintain my interest in and control of the company without diluting our ownership too much while still making it worth his while? Thanks in advance for your advice!
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