Partnership

More trouble than its worth?

[Tonearm]

Hello everyone, I'm considering starting an online DVD sales business with another guy as 50/50 partners. Does anyone have experience working with a partner that can lend some advice on that aspect?

Right now I'm a little stumped on the division of labor. I have business experience and technical expertise. We both have a little money and are highly motivated. How can the division of labor be set up fairly?

- Grant

[vibgyor79]

>>> I have business experience and technical expertise

What does your partner have? Just the money and the motivation? Either of you have any other business/work other than this new venture?

[lazy_guy]

I am in the same exact situation. I know an owner of a retail store that wants a website. He's been in business for 20 years but knows nothing of websites and ecommerce. I've known the guy for 20 years and he's always been good to me... knocking off a few bucks here and there.

I've made a few sites but never an ecommerce site. I've got a computer science degree and would probably go with a yahoo store platform. Right now I'm attempting to draft up a contract between us (with the help of s.c.o.r.e.) that would pay me an hourly wage plus 10% of online sales.

I think it's doable. Any tips or advice would be appreciated.

[TimmyMagic]

I would advise you to think very carefully about going into partnership with someone else. I setup a website with 2 other partners over a year ago. We were all motivated in the beginning. After some time I realised that i was doing more than my fair share. In the end I came to an agreement and I now have the site all to myself. It is much better this way.

Motivation at the beginning of a venture is one thing, but this can soon fade. If you are going to go into partnership with someone else, then makesure you have a written contract which details exactly what is expected from each partner. Also include some kind of get out clause. Obviously this will be dependent upon the nature of the business. Oh, and good luck!

Tim

[LifeinAsia]

Rather than enter into a formal partnership, why not just have the other person hire you to do the work on a contract basis? No need to complicate things with a partnership setup.

[lazy_guy]

The reason I'm thinking of doing the partnership is that I'm going to be the sole person doing the website. The owner of the shop knows nothing about coding, seo and the myriad of other aspects that makes a website profitable. I'm attempting to make his business expand and I would think that a percentage on top of a salary would be fair. It's basically my "flinch price." if he doesn't flinch then I know we're good to go. I've wanted to get into the surf industry and know a great deal about it.

The question is... if you had a brick and mortar, would you contract out someone to create and run your online business for you? Or would you rather partner up with someone that you've known for years?

[whoisgregg]

lazy_guy mentioned them in passing, but from personal experience, I think it's worth repeating the value that S.C.O.R.E. [score.org] can have in setting up a new business.

Each area is different, but my local S.C.O.R.E. volunteers are super resources and have a lot of experience.

[Matt Probert]

I have been in partnership. It failed. And after it failed I spoke to others in partnerships and we all noticed the same few things:

1) Keep business and pleasure separate. A business partner is a partner. Don't go into partnership with a friend, it's even better if you don't even like each other! (okay that's a bit of an exageration)

2) Make sure you BOTH invest equally

3) Have a proper agreement drawn up by a solicitor/attorney detailing the responsibilities of each party, and signed by you both.

Matt

[Rollo]

Avoid partnerships. Avoid 50/50 partnerships at all costs. If there is something you can't do, hire someone to do it.

[averyb2]

Having had three previous partnerships, I concur.
Don't do it!
One person always does the majority of the work. It's never "equal" and leads to bad feelings and even worse. Instead, be the boss and "hire" someone if need be or use sub-contractors. If you require an investor, let them be a silent partner that only shares the profits. Nuff said.

[etechsupport]

I find partnership with your husband, wife is much better than outsider.