WE'VE MOVED!

We are proud to announce our NEW community destination. Engage with resident experts and fellow entrepreneurs, and learn everything you need to start your business. Check out the new home of StartupNation Community at startupnation.mn.co
Options

bringing on a Business development partner

mattadamsmattadams subscriber Posts: 2
edited January 2008 in People: Hiring, Partnering, Mentoring
Hi, I am trying to seek advise and resources / articles / tips on having a partner buy in to our small design firm. 
I started the company just over 3 years ago, and this individual has been a mentor for me for those 3 years. He has been great at helping me grow, pushing me to new levels, and i have loved our relationship. Recently we had a conversation about him buying in as a partner (something he approached me about) . He would work on new business development, planning, and helping me with getting the firm growing in the right direction. I love the idea of all this, just trying to discuss it with others who have done this in the past. We plan on there being an initial buy in (i would love help trying to figure out this value), as well as setting it up so he it only on profit sharing (no paycheck).I`d love to hear any feed back on what you have done, or seen done, recommendations, tips, things to avoid and really anything you have on the subject. We do plan on having all of our agreement worked out with a lawyer. thanksmattadams12/26/2007 10:33 AM
· Share on FacebookShare on Twitter Share on Google+

Comments

  • Options
    zensufizensufi subscriber Posts: 0
    Now that you are taking your business relationship to another level, the relationship objectives will change.  Make sure you have your boundaries set and paperwork in order, so as to avoid any possible conflict down the road.  When a mentor becomes a business partner... a whole new ball game starts.  Your new business partner now has a much bigger stake in the game.
     
    -m-
    · Share on FacebookShare on Twitter Share on Google+
  • Options
    mattadamsmattadams subscriber Posts: 2

     Your new business partner now has a much bigger stake in the game.Thanks. Yes, this is exactly the point. Him having an actual stake, and monetary benefit in the success of our future growth. Has anyone brought in a partner in the middle of the game like this? I know of friends who started as a partnership, But I dont personally know anyone who has done this. I know people have though. Just looking for as much tips and advice as possible. 
    · Share on FacebookShare on Twitter Share on Google+
  • Options
    mattadamsmattadams subscriber Posts: 2
    thanks for the reply kjc. We have actually come to a conclusion to establish a baseline. We took a business buy report we found online that helped us figure out our companies worth. 
    Now with a lawyer we are establishing that the company was originally worth X amount, and had X amount of debt. This allows us to have out partner come on with no buy, just bringing of assets, network and knowledge. Then he only makes a profit on the extra profit we make each year after the base line. The new work he is contributing to. Seems to make the most sense. 
    · Share on FacebookShare on Twitter Share on Google+
  • Options
    CEOinBlackCEOinBlack subscriber Posts: 0
    Hi Matt,
    We are in the process of bringing a CEO on board.  I`ll let you know how it works out.  So far so good.
    · Share on FacebookShare on Twitter Share on Google+
Sign In or Register to comment.