Handling a potential partnership

Discussion in 'Growing and Managing a Business' started by colione98, Mar 3, 2010.

  1. colione98

    colione98
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    Hi, new to the boards....

    I am involved in a potential partnership by where myself and an another gentleman are broadcasting venues overseas under his company. We met at a non related event and he proposed that he broadcast my event for more exposure. After realizing that working with me proved to be a much more reliable experience then working with others, he asked that I become more involved in his company to expand and broadcast more venues. He advised that at that time, he could talk about my title within the company or any payment until he solidified a few more venues to introduce overseas to start making money. (Silly me I did not sign a MOU as I didn't know where this was going)

    From that time, as me being in the field, I have been able to develop and been in constant contact with reputable venues for a big upcoming broadcasting project. I have also been involved in working with the graphic designer for company logos. We have even developed a good working relationship as he keeps me in the loop so far on everything related to this project and has allowed me to function without being so overbearing.

    But here is the issue... As of 2 weeks ago, he asked me to confirm the venues in order for him to have approached the broadcast company overseas for funding. But he has yet to have done so stating that he did not know how to approach them. He also stated that he wanted to talk to a long time friend in the "biz" that had the know how of approaching the broadcasting company.

    I asked for a meeting last week to discuss the logistics and get things squared away. I also wanted this time to get a sense of where i stood within his company after providing so many reputable contacts and busting my arse. He once again told me that he could not talk about titles until we were making money. I also asked him if he could give me an idea of home much money we could potentially earn and he could not give a slightest hint as he said he did not know.

    I feel that there is great potential for the biz but at the same time my concern is 2 folded:1, that i will be working up to an employee position rather than a partnership as we are building this together. 2- he has not been able to draw up any type of business plan, has not produced any contractual agreements for the venues to sign-only having verbal agreements, and i don't see solid movements in motion for us to be making any type of money. He opened up a facebook and i have a feeling he is going to want me to do all the editing and so forth.....

    I don't want to cause any uneasy tension so do you guys think i should wait until the end of march when we have some dough coming in to bring it up- meanwhile, hold back and not be so quick to put all my effort into this without knowing where i stand? Or should i once again approach the situation and run the risk of that uneasiness especially during our final stages of preparation for this big project.?

    thoughts, thanks in advance?
     
  2. VenalTech

    VenalTech
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    If it is a 'partnership' but the business entity is a corporation/LLC, you should be listed on the corporations profile on your secretary of state's website, typically as VP or Director.

    If the business entity is a partnership, you would both be listed as co-owners/partners.

    Without any official documentation of this partnership, you are setting yourself up to be taken advantage of.
     
  3. colione98

    colione98
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    thanks for the reply... so i suppose without further question, you are stating that i should immediately have whatever conditions are placed in writing....

    thanks again.... makes sense
     
  4. VenalTech

    VenalTech
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    Better safe than sorry is my motto.

    For both legal & personal reasons you should get everything in writing, possibly even notorized, if it's a lot of money. It will benefit you & him both to have a clear outline of both of your roles in the business. Knowing what's expected of each other now and down the road is bare basic business and he shouldn't get offended or feel uncomfortable about it.

    Let me know if you have anymore questions and keep me updated if you want more advice.
     
  5. Fergal

    Fergal
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    Welcome to Business Advice Forum colione98 and thanks for posting your business questions.

    I agree with VenalTech, you should get some kind of agreement in writing with this guy. It's difficult for you to motivate yourself and push this project forward, when you don't know what the potential rewards for you will be, or even if there will be any rewards. Much better to get things out in the open and dealt with. If your partner is a serious business person he should not expect you to continue working on a project, without knowing what you can hope to get in return.

    From what you wrote it would appear that you have some doubts about your partner's business competence and his ability to deliver on his end of the deal. This is something else you need to get out in the open and clarified. If you are partners you have every right to ask him questions about his plans for delivering on his end?

    Good luck with it and please keep us posted as to how it works out for you.
     
  6. colione98

    colione98
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    Thanks for the welcome and advice.

    Not having mentioned this previously, I was originally asked to come aboard as his eyes and ears because he was not able to tend to the venues on his own. But after thorough consideration, i decided to wait until the main event to decide whether or not i am going to proceed as being part of "his" business in the capacity as administration or partner. I will however always remain as a broadcasted venue as my place will be part of the contract so i will not be totally be out of the picture.

    The reason for this is because I learned that he is not as competent as I thought. I realize that as we are getting closer to crunch time, he is not well prepared at all. We have venues that have committed to being broadcasted beginning march 25 and he still has yet to talk to the stations. He wants to finalize the projects but is slowly pushing the task of drafting the agreements on me in which i will not do.

    And as anticipated, due to his lack of whatever, he asked that i construct and maintain the face book page because he was "too busy" trying to contact the stations overseas in which they have not responded yet- but he was able to play beach tennis yesterday.

    There was a potential client requesting to be broadcasted that contacted me and wanted to meet. I set up the meeting at the venue last night (i was giving specific directions not to talk to anyone regarding the project without him- my director being there).

    Although a busy night, the client approached us and i introduced the two. It was such an awkward moment because the director blew it by not even mentioning anything about the project that the client asked us if we were ok then slipped away. The director told me that he did not want to talk to him in that environment (in which he knew prior to) but instead wanted to wait until after our big project to have talks.......

    At this point, its my reputation but its not my company and i don't feel that its my place to teach him social/business etiquette.

    So, i will make my self less available and when the time comes, I have all my work documented to present to him. And as far as taking advantage of me, well i honestly think that he really needs a go getter like me to make his company take off.

    I would much rather take a less available approach because he hasn't been rude or abrasive with me and i don't see the need for any of the added tension between us.

    However, I am still fight the battle of shared tasks as i know that tasks are not always evenly distributed within a company.

    Most of you are thinking- get out while he can..........
     
    #6 colione98, Mar 7, 2010
    Last edited: Mar 7, 2010
  7. VenalTech

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    Probably, but in the end, it's your decision.

    There have been many times when people told me to "get out while you can" or "it's never going to work" and sometimes they were right, but sometimes they were wrong.
     
  8. Fergal

    Fergal
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    colione98 what does your gut instinct tell you to do?
     

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