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My dad had a construction business established in late 80s (in a 3rd world country). It was a small scale construction company which I actively participated in every aspect of the daily operations. I'm also an engineering graduate. However I wanted to do further studies and migrated and now living in a different country for couple of years. Further, I got the citizenship of this country (1st world country). However my dad stopped his businesses and all the business activities were stopped. Recently my dad passed away and I want to continue his business.
I registered my dads brand name as a limited company as what he had was a sole proprietor. And updated our business website a bit.
I don't want to permanently move back to my original country and can't travel there soon to set it up over there for personal reasons.
I have a close friend who's also an engineering graduate who agreed to become the manager of the business and I told him if you fully manage it I would share a 50% of the profit from the projects but I do not willing to provide him any shares of the business (only the profit will be shared). Feel like it's too much profit for him, but also he'll be handling atleast 50% of the operations. He does not have a business mind and do not have business skills though. So I will have to take care of marketing, finding projects and clients, and even put some capital into the projects until the funds are billed and recovered from the clients. He'll be looking after the projects, hire unskilled and skilled workers, purchase materials on my behalf (sometimes I'll have to find where to find low priced and quality materials etc and direct him there, as he does not have purchasing experience)
I do not have a lot of capital, but construction projects usually does not need initial capital as clients are providing the advance fee (mobilisation advance). The project will be divided into 10 stages and the client will provide the advance for the first stage. So the starting up the project is not an issue. However, I'll have to fund more money into it for the second stage onwards until the bill is settled for the second stage.
Further, I'm bit weak at marketing. However I tried distributing leaflets (brochures) and received couple of calls which never lead to any actual projects. Most of the work we got was from word of mouth.
We are guaranteeing our structures for 25 years that it will not even form a insignificant structural defect. If it does, we're bound to repair it to the good condition. (most of the construction companies in my country does not even provide a one month guarantee)
I don't even know if the 50% profit sharing is too much as he does not have to bear the any kind of risk he will not be willing to. I also want to see my friends to have a good life so I don't have hesitation sharing him that much. However I have a doubt if I can continue investing in the business (purchase equipment, hire more people, expanding the business and even I will have to produce the structural drawings and take the liability etc) with only 50% of the profit as he will not put a dime for sure from his 50%. But I still want to set this up and make it up and running there without travelling.
Any comments would be appreciated to make this happen.
I registered my dads brand name as a limited company as what he had was a sole proprietor. And updated our business website a bit.
I don't want to permanently move back to my original country and can't travel there soon to set it up over there for personal reasons.
I have a close friend who's also an engineering graduate who agreed to become the manager of the business and I told him if you fully manage it I would share a 50% of the profit from the projects but I do not willing to provide him any shares of the business (only the profit will be shared). Feel like it's too much profit for him, but also he'll be handling atleast 50% of the operations. He does not have a business mind and do not have business skills though. So I will have to take care of marketing, finding projects and clients, and even put some capital into the projects until the funds are billed and recovered from the clients. He'll be looking after the projects, hire unskilled and skilled workers, purchase materials on my behalf (sometimes I'll have to find where to find low priced and quality materials etc and direct him there, as he does not have purchasing experience)
I do not have a lot of capital, but construction projects usually does not need initial capital as clients are providing the advance fee (mobilisation advance). The project will be divided into 10 stages and the client will provide the advance for the first stage. So the starting up the project is not an issue. However, I'll have to fund more money into it for the second stage onwards until the bill is settled for the second stage.
Further, I'm bit weak at marketing. However I tried distributing leaflets (brochures) and received couple of calls which never lead to any actual projects. Most of the work we got was from word of mouth.
We are guaranteeing our structures for 25 years that it will not even form a insignificant structural defect. If it does, we're bound to repair it to the good condition. (most of the construction companies in my country does not even provide a one month guarantee)
I don't even know if the 50% profit sharing is too much as he does not have to bear the any kind of risk he will not be willing to. I also want to see my friends to have a good life so I don't have hesitation sharing him that much. However I have a doubt if I can continue investing in the business (purchase equipment, hire more people, expanding the business and even I will have to produce the structural drawings and take the liability etc) with only 50% of the profit as he will not put a dime for sure from his 50%. But I still want to set this up and make it up and running there without travelling.
Any comments would be appreciated to make this happen.
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