T-Shirt Forums banner

1 - 12 of 12 Posts

·
Registered
Joined
·
1,022 Posts
Discussion Starter #1
So I'm not even an established business yet. I haven't even sold one shirt! But my friend wants to go into
Business with me. I already put up the money for all the equipment and supplies and not to mention about 110 shirt designs- which r all my artwork and photography.

Should I take him on as a partner? I know it will be nice to have more money for things but I think I can get by.

What do u think I should do?

And if I were to decided to have a partner, how should everything be divided %wise? Thanks.


Sent from my iPhone using TShirtForums
 

·
Registered
Joined
·
6,680 Posts
Is your friend going to take on certain job responsibilities or just offer up some money?

If just money, then don't make him a partner, make him an investor. Decide how much he will invest, and how much you will pay back and when.

If he wants to take on job responsibilities, and you feel you need the help, then go for it. Since you are already financially invested in the business, you need to figure some things out. What is the value of the equipment, supplies, designs and any work you have done to this point? If your friend wants to match that total investment to date, then he can buy 50% of the business, entitling him to 50% of the profit. But with that, he has the responsibility to continue to invest 50% of all expenses, as well as do 50% of the workload. If he wants to invest a smaller amount, that's fine, then his % of profit and responsibility goes down based on the amount he invested.

Make sure you put all of this down on paper and sign it as an agreement. It is very important to understand that the % of ownership is not just % of profit. Ownership includes expenses and workload too. Do not sell off a % of your business if you intend to keep doing all the work. If you are going to do all the work, you may as well keep all the profit.
 

·
Registered
Joined
·
996 Posts
Great advice from Tim. Make sure that if you work from home, part of the expenses are electric and other utilitys. Make an iron-clad agreement and it would not be a bad idea to have a lawyer check it out.
 
  • Like
Reactions: baddjun1

·
Registered
Joined
·
45 Posts
I suggest that you unless you just cannot succeed on your own, you wait on the decision. Many times partnerships are highly detrimental to businesses because somewhere along the lines someone will feel that they are more productive or instrumental in the business and typically the direction two seperate individuals try to take the business may be in two seperate directions.
Remember that the main benefit to operating your own show is that you are in control of the outcomes and variables, not relying on someone to agree with you.
If you still decide you want to take on the "partner" I suggest the investor relationship over the partnership as well.
 

·
Registered
Joined
·
4 Posts
hi it all depends on what he can offer you ie if your not good at something and he is then it may be worth it
if you do decide to go for it you need to work out what each others strengths and weaknesses are and how many hours you are working per week
if you decide to be partners you need to decide what capacity you want involved i.e if 50%50% you need half of every thing you have already spent and then every thing is slit equally how every if he is better at selling you may just want to give a % per item sold i.e he dose the markets
 

·
Registered
Joined
·
4 Posts
oh yeah what every you do make sure it is all in writing with every single detail including what happens if 1 of you pull out you dont want to be paid say £500 for 50% now if in say 3 years it could be worth £5000
in my experience if this is not sorted now they will try to get out of it by giving just the 500 back
 

·
Registered
Joined
·
6,680 Posts
if you decide to be partners you need to decide what capacity you want involved i.e if 50%50% you need half of every thing you have already spent and then every thing is slit equally
Actually, it depends on what she does with the money he gives her. If he gives her half the total costs so far and she put it back in her personal account for personal use, then they would be 50/50 going forward.

But if she intends to use his money towards the business, then giving half the total costs so far would not equate to a 50/50 split. For example, if she has invested $1000 so far, and he gives her $500 more towards the business, that's a total of $1500. Her $1000 to his $500 equals a 66/33 split in her favor. To be 50/50, the friend would need to match the current investment. So if she has invested $1000 so far, he also needs to invest $1000 to get the 50/50 split.
 

·
Registered
Joined
·
869 Posts
Forty years of being in business here. Don't do it...run as fast as you can away from it! Been there,,done that, one of you will be dissatisfied with the other and probably will end us as enemies in the long run.
 

·
Registered
Joined
·
25 Posts
Agree with LB and N. signia. After 20 years military service, started two seperate business partnerships with long time friends. One lasted two years, the other 5. I can say first hand... partnerships can destroy friendships. I bought both out but friends are now just friends. Not good friends.

If you need help, hire it. If you need funding, borrow it. If you think getting along with a spouse can be difficult, just try a partnership!
 

·
Registered
Joined
·
869 Posts
Agree with LB and N. signia. After 20 years military service, started two seperate business partnerships with long time friends. One lasted two years, the other 5. I can say first hand... partnerships can destroy friendships. I bought both out but friends are now just friends. Not good friends.

If you need help, hire it. If you need funding, borrow it. If you think getting along with a spouse can be difficult, just try a partnership!
Amen to that!
 
1 - 12 of 12 Posts
Top