Questions - IT Bussiness

Discussion in 'Growing and Managing a Business' started by Alexanderb, Mar 9, 2012.

  1. Alexanderb

    Alexanderb
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    Hello.
    I've been developing a marketing structure for a IT section - informatics, developing websites, buying people domains and setting them up etc..
    The thing is I'm not in this alone, we aren't a firm. We are a couple of friends. Everybody would put cash together and buy resources and work with it...

    My question is does anybody have a good idea for shares.
    When multiple people work in such a manner, when someone invests less and someone more, if some people work,if someone external comes into only a project - is 50% rightfully his?, if someone only invests..
    How do i set the shares up? Its not big money, we are students, but I thought about it a lot and all i could think of is a share holder system that is static and non flexible.It wouldn't work because if we get someone more into our project it would need to be redesigned.

    Any good ideas about setting share holdings for a small student group? We will have investors, workers + investors, only workers, me who is marketing and developing and investing. How do i go about it?

    I can tell you my idea, but it might be sort of irrelevant because I expect you people to know about this.


    Another question is can I set domain names for our projects under a "Organisation" name. But we won't have a firm. I don't want to have private domain listing but not that it writes directly my information.


    Thank you for answers.
     
  2. asad

    asad
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    Welcome here. IT business requires expertise rather than investment.

    How much investment required. Just a website nothing else all others are your developing and marketing expertise. If you are going to start to take projects from freelancer, elance etc then a bit amount required for taking bidding membership. I can share more but better if you write your expertise and idea so that i can answer relevant to that.
     
  3. Shahrier

    Shahrier
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    You have to give shares upon how much work/investments one person is putting in. If one person puts in less investments and less work, while the other does a lot more, then it should not be a 50% share. The other person is doing and giving more towards to project and therefore he/she should own more. This is all up to the founder, however.
     
  4. anderson

    anderson
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    Since companies these days depend on computers in approximately all fields of their functioning, breakdown in any phase of networked systems may be a lack of ability to operate properly. The role and responsibility of the IT support personnel mainly is to examine and retain the computer system and network.
     
  5. Mark T

    Mark T
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    Well, if you are not yet a firm, I think one of the best ways that you can determine your shares is how much have each of you had contributed in terms of financially supporting the project. Plus, the factors like how much effort and time has been given, the ideas. I can simply say that is is way tough yet for all of you to have a fair share distribution but a good plan and process for all of you will be a good deal in the end.
     
  6. Casey

    Casey
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    hey Alex. Setting up equity is not very easy if you're not operating under a llc or similar. An option for you would be to sit down with your friends, put pen to paper and write down a formal contract between you guys, stating how much equity does each one of you hold, what happens if a new member joins the team etc. and then each one of you should sign it. Of course it probably won't have much legal value but at least you'll have something to refer to should any missunderstandings arrive.
     
  7. patrick0001

    patrick0001
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    For people who work on the business, we call it as worker.
    For those work are contribute money, they can be share holder, loan to a business or investor.

    1. Share holder = person who hold the business share, the business profit and loss, they more they contribute more % they get, and they have authority to the business.
    2. Investor or loan to company = they like a bank, they loan or invest their money and expected interest.

    Once you able categories them, you have no problem to share profit or give them salary.
    Note: your role is worker + contribute money, so you can expected salary pay + profit sharing.
     
  8. riteshnarula

    riteshnarula
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    IT business is a good for making money in short time.
     
  9. jessicabrown

    jessicabrown
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    See if you are going to work together for the first time, test the partnership out by tackling a small project together that shows each other’s skills and cooperation. This is also a way to learn about each other’s personality and core values.Sharing should be on basis of hardwork one puts into the business. So lot of thins matter while setting up a business with many people
     
  10. Bliss Elliosn

    Bliss Elliosn
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    Hi Alexanderb,
    Though profit sharing is a complex problem, however patrick0001 has given you a practical and valuable advice.
    You must give it a thought.
    It is also practicable however involves some risks. But to run this test, each member has to give his input; investment or effort.
     

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