Forum Moderators: phranque
There are 3 of us who have recently (2 months now) set up a website on a hobby that we all enjoy, which is playing poker.
I have a couple of websites (totally different businesses) which i have had success with and therefore have more experience in websites than the other two.
What i have noticed in this short period of time is that there is not an equal amount of input from all the members. When i say input i mean writing articles to increase the content of the site.
There has been talk between us that we should draw up a contract and I suggested that we should set ourselves a certain amount of articles each in a given space of time, and if this is not reached then the person with least 'input' should pay a penalty. One of the partners suggested it should be the other way round and that winning something would be more productive than a punishment.
The plan at the moment is to split the costs 3 ways and also the profits (when there are some) 3 ways. This also implies that the workload should be split 3 ways, but how should this be measured?
We are having another meeting this week and I was hoping that some of you on this forum would have some advice on the best way to organise it so that all 3 members contribute equally to the content and development of the site.
What should be included in the contract?
How can I motivate the others to contribute more?
etc, etc. Any ideas would be greatly apprecitaed.
Regards,
Tim
My experience is, if these are friends or family, just run as fast as you can. Forget about the money and work on your other websites. All the trouble is not worth the money, believe me.
There is a Dutch saying:
Friendship built on business is better than business built on friendship
Yes, the easiest thing is to say, "Run and hide", but I'd like to hear, for myself, some sucess ideas for this.
Some thoughts:
Why would one want/let a person become a 'co-owner' rather than just an employee?
Is 'sweat-equity' equal to investment?
What IS sweat equity worth?
What does experience count for? (Is it the same as sweat equity?)
I certainly don't think this needs to be a business 101 discussion, but the problem described above is quite common.
One of my customers is run by three family members, and they are actually quite succesful. They are runnning the company for almost thirty years now (they are not in internet business). One of them told me how they organized it.
If you are involved with friends, then the cautions above are wise - but they're not the whole truth at all. It IS possible to form businesses with friends and relatives. The "family business" is a long standing tradition, and the actual origin of all business, long before the rise of legal entities and "artificial persons."
That said, the actual arrangements, whether written or verbal, will succeed or fail depending on their clarity for all involved parties - and whether the relationships are direct enough to survive a bit of tough talk from time to time, even to value it.
In short, you've got to be able to say what's on your mind without trashing the relationship - and if you can't, then having a formal contract will not matter. Many relationships develop communication taboos, things you can't talk about, ways you can't communicate, and so on.
In fact, there are business therapists whose work is to untangle this kind of thing. But it's better not to go there to start with, if you can help it.
Does everyone bring an equivalent skill set? For example, in the example raised in the first thread, are all three poker afficianados equally adept at writing content? If not, what other skills and work can compensate? Would you be better with one editor who writes/re-writes the rough drafts contributed by everyone?
In short, find creative ways to adapt to each parties strengths. I agree that a positive reward is better than a penalty. But a more important question, at this early stage, is why isn't everyone full of enthusiasm for the project and contributing like mad?
Don't try to bury a problem - because you really won't be able to. Talk turkey.
A contract will only hide a deeper problem for some time but eventually it will come on the surface again, despite everything that has been written down and agreed upon in the past. Better to find this out first.
I think this is the main problem with businesses started by friends or family. The glue might not be the project itself, but the existing friendship or family ties. Try to identify what is the motivation for each of the parties.
A contract will only hide a deeper problem for some time but eventually it will come on the surface again
May I respectively (sp?) disagree?
A contract, properly administered, will actually bring to light the very deep fears that each individual must and should share prior to singing the said contract.
If, in the future, a said individual thinks of a new fear or revelation it should be in the contract that us folks would review the contract every 3/6/9/12 months to iron out these issues. Yes, this can be part of the contract/agreement!
> But a more important question, at this early stage, is why isn't everyone full of enthusiasm for the project and contributing like mad?
That's what jumped out at me and, in my eyes, makes the other issues raised, non-issues.
If the enthusiasm for the project is waning after less than two months, then the enterprise is doomed to failure. It will take some blood, sweat, tears and spirit to make those first profits.
Sounds like the will to suceed has left the building. That means money is being sunk into a money-losing operation and... "Aw man, I'm suppose to have three articles done by Monday? But the poker championship is on the tube..."
The "run-and-hide" advice doesn't so bad. A contract isn't going to reverse the growing misery and aversion to honest hard work.
It's a common problem, and one people should be well to heed, NEVER go into business partnership with friends.
Matt
I wouldn't say the the intial enthusiasm has died after 2 months. The entusiasm is still there but 2 of the partners are very busy with work and raising young children, so i can understand that they sometimes don't have as much spare time as me.
It would probably have been easier to set up the site on my own, but there have been advantages. The other 2 partners already had a website and know a lot of people who have so far contributed to the forum on the new website. As it's a community site then this was always going to be important and is one reason i thought it would be a good idea to link up with them.
I thank you all for your comments and now it will be a case of working out what is the best option. I notice that many agree with the positive rather than negative penalty, which i guess is something we'll have to work out.
Regards,
Tim
