Hi,
I have a business partner in who has brought a deal to the table, unrelated to our current partnership. This deal is basically us taking over part of the business because the current owner of this contract does not want to do this anymore because it’s not a part of their core business.
So for example, let’s say the current owner wants $150K to have me and my business partner take this part of the business/contract over; so we would do a profit share over the next 3 years where we would give $50K each year until we absorb the rights to this new contract and customers.
However, over the next 3 years I’m doing all the work; nurturing leads, making sales, customer support, cutting the POs, collecting payment, working with manufacturer to ship products to end-customer, re-negotiating rates with manufacturer, etc…while my business partner does NOT help with any of this, he just had the connection to this deal. So without me keeping this contract/business running smoothly by doing all the above day in, day out work…then this business would not exist.
It just seems like a lot to commit to with an even 50/50 split when I’m the one that’s going to be doing all the work. If he came into this as investing $100K and then doing a profit share of $50K, then me doing all the work it would seem more fair because then it would only take 1 year to payoff the current owner and have complete ownership of this contract/business.
Thank you!
I have a business partner in who has brought a deal to the table, unrelated to our current partnership. This deal is basically us taking over part of the business because the current owner of this contract does not want to do this anymore because it’s not a part of their core business.
So for example, let’s say the current owner wants $150K to have me and my business partner take this part of the business/contract over; so we would do a profit share over the next 3 years where we would give $50K each year until we absorb the rights to this new contract and customers.
However, over the next 3 years I’m doing all the work; nurturing leads, making sales, customer support, cutting the POs, collecting payment, working with manufacturer to ship products to end-customer, re-negotiating rates with manufacturer, etc…while my business partner does NOT help with any of this, he just had the connection to this deal. So without me keeping this contract/business running smoothly by doing all the above day in, day out work…then this business would not exist.
It just seems like a lot to commit to with an even 50/50 split when I’m the one that’s going to be doing all the work. If he came into this as investing $100K and then doing a profit share of $50K, then me doing all the work it would seem more fair because then it would only take 1 year to payoff the current owner and have complete ownership of this contract/business.
Thank you!
Dislike ads? Remove them and support the forum:
Subscribe to Fastlane Insiders.