Heads up on joining a business partnership

[FlYnN91]

Hi everyone,

I am a Software Engineer and I've been asked to join a start-up business. Obviously I have no idea about business. The company and I agreed 30% share of the company for me. Just wanted to know if there is anything I should be looking out for just so I don't regret it in the future? There has not been any contract signing so I assume the 30% is still in the air isnt it?

Any suggestions would be helpful,

Thanks

 

[Roy Salmon]

Hi,

You need to be given a detailed contract that you can take to a legal representative and have it vetted for you. Depending on the outcome and what your 'legal' commitments you are under,
will then allow you to consider the 30% offer in a far better light.

From my experience I would suggest that you consider a "freelance' arrangement in order to
really get to know who you will be working with and that the chemistry is right, and then, say
after 3 months consider the partnership offer!

The best of luck to you.

Roy Salmon
Consultant

 

[FlYnN91]

Hi Roy,

So what do I actually need to do? Make them draw up a contract and not do any work till I get it and sign it? Or is it me who is responsible for that part?

Thanks

 

[Roy Salmon]

Hi,

It's them that are making the offer! let them spell it out, what is in the offer
for YOU. Get the offer vetted and if you are happy with the terms then suggest
a trial period prior to signing up. This way you will know what to expect and
hopefully not experience problems at a latter date.

Good luck

Roy

 

[Scalloway]

Make sure your agreement includes a clause on how disputes will be sorted out, how you can dispose of your share at a later date etc. You are a minority shareholder so the other owners have the advantage.