- Original Poster
- #1
Hi
I have an existing consultancy business that i started nearly 5 years ago. My company has a great reputation in my city and im a go to 'agency' in specific sectors. While i present myself as an agency, its essentially just me and as such, ive paid myself a salary and dont have equity in the business.
I have someone who wants to work with me on a partnership basis which is great as we really compliment each other and can bring different things to the business. Shes bringing one retained client to the table which we'll split in terms of income and Im bringing a couple of others which will match that income along with two huge potential contracts worth a lot of money.
My question is about how to work out what percentage of the business she should get. So far ive agreed 50 % but she isn't bringing equal value to the table really. I have a lot of big contracts potentially on the table, worth a lot of money and her retained client is very modest, would give us a basic salary each.
Another thing thats thrown a spanner in the works is finance. We were going to take out a loan to pay for a new office, equipment etc but i have some adverse credit due to moving house a lot and im not on the electoral role at my new property yet. Shes now wary of taking out a loan personally, even though we've agreed to draw up a contract to say we would both be liable. We will have a ltd company with a bank account in both of our names which the loan repayment would come out of and we have all this income already so theres no danger of none payment.
Im a bit put out really because ive taken a leap of faith by offering her 50 % of my business yet she isnt prepared to put her money where her mouth is if you like.
So now im thinking maybe i need to rethink? Theres got to be an element of trust on both sides and goodwill and she says that shes showing that by giving me half of her one client but also worth noting id be working on that account, so shes not 'giving' me anything.
Sorry for long winded post, its quite complicated and im just trying to work out the best way to work out the value of my business and brand and how what shes bringing compares i guess. The loan situation is a tough one, i dont see how theres a difference between it being in her name, my name or both of our names, we'll both be named as liable, we have the income to pay it back already and it'll come from a joint back account. I guess this is more of a personal issue, not for here but im just trying to decided the best way forward as a business!
Thanks
I have an existing consultancy business that i started nearly 5 years ago. My company has a great reputation in my city and im a go to 'agency' in specific sectors. While i present myself as an agency, its essentially just me and as such, ive paid myself a salary and dont have equity in the business.
I have someone who wants to work with me on a partnership basis which is great as we really compliment each other and can bring different things to the business. Shes bringing one retained client to the table which we'll split in terms of income and Im bringing a couple of others which will match that income along with two huge potential contracts worth a lot of money.
My question is about how to work out what percentage of the business she should get. So far ive agreed 50 % but she isn't bringing equal value to the table really. I have a lot of big contracts potentially on the table, worth a lot of money and her retained client is very modest, would give us a basic salary each.
Another thing thats thrown a spanner in the works is finance. We were going to take out a loan to pay for a new office, equipment etc but i have some adverse credit due to moving house a lot and im not on the electoral role at my new property yet. Shes now wary of taking out a loan personally, even though we've agreed to draw up a contract to say we would both be liable. We will have a ltd company with a bank account in both of our names which the loan repayment would come out of and we have all this income already so theres no danger of none payment.
Im a bit put out really because ive taken a leap of faith by offering her 50 % of my business yet she isnt prepared to put her money where her mouth is if you like.
So now im thinking maybe i need to rethink? Theres got to be an element of trust on both sides and goodwill and she says that shes showing that by giving me half of her one client but also worth noting id be working on that account, so shes not 'giving' me anything.
Sorry for long winded post, its quite complicated and im just trying to work out the best way to work out the value of my business and brand and how what shes bringing compares i guess. The loan situation is a tough one, i dont see how theres a difference between it being in her name, my name or both of our names, we'll both be named as liable, we have the income to pay it back already and it'll come from a joint back account. I guess this is more of a personal issue, not for here but im just trying to decided the best way forward as a business!
Thanks
