Advise on joining a business partnership

Discussion in 'Growing and Managing a Business' started by daniolly2012, Jul 8, 2014.

  1. daniolly2012

    daniolly2012
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    Hi all

    I am hoping to gain some advice on a new venture I am considering.

    A business in the UK has approached me to establish an Australian office for them...as part of my remuneration package I will be made MD with a share holding within the Australian business.

    The advice I am after relates to what percentage of the business should I request and what percentage of total capital investment should I be required to invest bearing in mind I will be full time within the daily operations of the company.

    Hoping to get some feedback, if you have any questions feel free to ask.


    Thanks
     
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    #1 daniolly2012, Jul 8, 2014
    Last edited by a moderator: Jul 8, 2014
  2. Aleena

    Aleena
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    I think it's a wonderful offer and you should consider this offer. I also believe to check for your self if the offer is valid and it has benefits for you. Then you can join without any hesitation.
     
  3. ProfitClinic

    ProfitClinic
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    If you've done your homework — including background checks on the owners and key personnel, past performance of the business, debt levels, all the financial metrics, marketing plans, intellectual property, etc — then I’d consider accepting.

    The preceding opinions are well-intentioned, I’m sure, but based on absolutely no factual information. That's risky advice.

    I’ve seen some good opportunities offered to consulting clients over the past 40+ years, but only a handful of them turned out successfully.

    Get the right professional advice before doing or agreeing to anything.

    If everything stacks up properly, and it fits with your own skillsets and know-how, your personal mission and values, then give it your best shot, but be sure that you're not getting into something that encumbers you with liabilities and legal exposure that should rightly belong to others.

    John
     
  4. Mark Robinson

    Mark Robinson
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    When establishing a serious partnership arrangement to run a business, it is not enough to just shake hands and get started. You must outline and agree on important details and issues likely to arise, such as who will take on certain responsibilities at the business and what will happen if one or more partners decides to terminate his relationship with the company. You must also clearly establish each partner's percentage of business ownership.Determine the amount of the total investment required to get the business started. Divide your own contribution by that total to estimate a fair percentage of ownership. Use this as a starting point for negotiations with your proposed partners.
     
  5. Mark T

    Mark T
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    In addition, ask for , possibly, a written contract about the partnership. It should show the scope of your partnership and what you own and what you don't.
     
  6. Tom Woods

    Tom Woods
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    Most valuable piece of advice is to exercise caution and understand their motive for the partnership as well as your own.
     
  7. Mark T

    Mark T
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    May I ask what kind of business venture are you planning to get partnership with?

    Regards,
    Mark
     

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