About to partner with a guy to start an agency. Tips? Advice? Warnings?

[Saad Khan]

I'm starting an online service agency in the Amazon Ads space with a guy like me. The reason why we're both doing this is to bring structure into everything we do like managing clients, reporting, work quality output, training, hiring, and delivering an overall better and more consistent experience for our clientele. We don't have a USP when compared to agencies, but will have an edge against individuals.

I need help with not shooting myself in the foot by drafting a contract that can get me kicked out of the agency itself, (because my father did in his business when he was signing contracts and didn't have anyone to consult). I want to have equal control as him in the vital sectors of the agency like finance, assets, websites so he doesn't screw me over (I'm dealing with humans, yknow)

I have done research on this guy and one of the informants who worked with him told me that operations and execution is his weak point. He's good at selling because he has managed to sign up 90-100 people into a paid program (I'm one of those suckers too), which was too basic for me given that we both have same expertise in Amazon Ads management. He does have comparatively more expertise in product research, logistics, sourcing and has launched a private label brand for a client from scratch.

There is one more thing.

He does have funds, but I don't have much funds left now, there was an emergency at home I had to help my parents with recently.

So how do I'm planning on drafting the contract?

Here's how.

We divide everything 50/50.
We have to invest 50,000 PKR in the agency no matter what (that's all the funds I have)
We don't take profits or salaries out in the first 3 months.

Need feedback from guys like @BizyDad, @Oso and other people.

 

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[Lyzmin]

Great that you'er exploring your options and ask for advice.
On most of the questions other people have better credentials for advice.

The most important to me is always: is this a person of high trust?

View: https://www.youtube.com/watch?v=PTo9e3ILmms


Watch the video (only 3 minutes).
Ask yourself deep down and listen to your gut.
Saved me a few bad collaborations.

Best of luck to you!

 

[Stargazer]

Honestly you need a solicitor to advise you.

Moreover you are in Pakistan so presuming the other guy is too, your laws will be different from US or UK

eg You set up the company with 100 shares of $1 each. You put in $50 and he puts in $50 so you are equal shareholders.

Irrespective of whether you are working well together, what if he decides to give his wife half of his shares and then later on divorces her? She is now a 25% shareholder. What if he dies? What if he decides to give them away or sell them without asking? You want share tranfer covered from day one.

Bet you didn't even think of that? I know someone who lost a £10 million a year engineering business because his business partners multiple ex's kept gettiig shares as part of divorce settlements.

Have you heard this joke? There's only two times business partners argue and fall out. One is when they are making money and the other is when they are losing money.

Dan

 

[Subsonic]

I'm starting an online service agency in the Amazon Ads space with a guy like me. The reason why we're both doing this is to bring structure into everything we do like managing clients, reporting, work quality output, training, hiring, and delivering an overall better and more consistent experience for our clientele. We don't have a USP when compared to agencies, but will have an edge against individuals.

I need help with not shooting myself in the foot by drafting a contract that can get me kicked out of the agency itself, (because my father did in his business when he was signing contracts and didn't have anyone to consult). I want to have equal control as him in the vital sectors of the agency like finance, assets, websites so he doesn't screw me over (I'm dealing with humans, yknow)

I have done research on this guy and one of the informants who worked with him told me that operations and execution is his weak point. He's good at selling because he has managed to sign up 90-100 people into a paid program (I'm one of those suckers too), which was too basic for me given that we both have same expertise in Amazon Ads management. He does have comparatively more expertise in product research, logistics, sourcing and has launched a private label brand for a client from scratch.

There is one more thing.

He does have funds, but I don't have much funds left now, there was an emergency at home I had to help my parents with recently.

So how do I'm planning on drafting the contract?

Here's how.

We divide everything 50/50.
We have to invest 50,000 PKR in the agency no matter what (that's all the funds I have)
We don't take profits or salaries out in the first 3 months.

Need feedback from guys like @BizyDad, @Oso and other people.

I personally think of partnerships like this:

If I need think whether the other guy is trustworthy, he's probably not.
If I need to think whether it's a good idea, it's probably not.

This doesn't mean you shouldn't think but more so that if you have these thoughts of "this is probably a bad idea BUT..."it should already by clear that it's going to end badly.

 

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[Saad Khan]

I personally think of partnerships like this:

If I need think whether the other guy is trustworthy, he's probably not.
If I need to think whether it's a good idea, it's probably not.

This doesn't mean you shouldn't think but more so that if you have these thoughts of "this is probably a bad idea BUT..."it should already by clear that it's going to end badly.

Whenever you're doing business with someone, even if its an angel, picture a scenario when they are in court suing you. What's your defense? I'm approaching from this angle.

I've met my dad's past partners and they're so good at putting up a persona you will think he's got it all figured out and a saint.

As for the guy I'm partnerning with, I paid him 30,000 PKR for a course and he delivered. Considering his actions, I think he can be trusted. But I can't ignore the opposite side. My dad's business suffered badly because of blind trust.

 

[Saad Khan]

I personally think of partnerships like this:

If I need think whether the other guy is trustworthy, he's probably not.
If I need to think whether it's a good idea, it's probably not.

This doesn't mean you shouldn't think but more so that if you have these thoughts of "this is probably a bad idea BUT..."it should already by clear that it's going to end badly.

Also I'm seeking feedback on terms and conditions regarding contract I'll be drafting to send him to review and sign.

 

[Oso]

I'd like to begin by saying I have no idea what I've done to earn your trust to the extent of tagging me in this, but I'd like to believe that's a sign I'm spreading some type of useful information around here, so thank you for your trust.

Regarding your situation, this is one of the main reasons I don't partner with anyone. Ultimately, this is something I advise you seek professional assistance with (I did/do), for two primary reasons:

A) I know absolutely nothing about drafting partner contracts (I've done ~4 w/ a lawyer)/contracts of this magnitude
B) I know absolutely nothing about the specific laws in your country (my contract knowledge is US-specific, and even then, it's limited).

I finally get tagged in a thread, and it's something I can't provide much value in. Lame.

Cheers!

 

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