I am looking for a sales person/office manager to take some pressure of me, so I can produce more work & build the company. I feel I can not do anymore production with 1/2 of my time doing sales/marketing/billing/accounting/filing etc. I am also looking for that person to buy a portion of the business and be a part of the corporation. A partner in short.
After sales increase I would then hire a shop worker for carpentry, painting & installs.
To my question, I think I have a fair compensation plan, hourly pay ($12) for the office duties, 10% commision for sales & split the profits (based on the percentage of the business they invest in) quarterly or annualy after everything is paid. Also, leaving some in savings.
Is a 10% straight sales commision enough, plus the hourly, plus a percentage of the profits???
I have a potential partner and she wants to buy 10% now but have the option of buying up to 40% total at a later date for the same price I am asking now. I say the business will be worth more in the future and it should be based on a pecentage of the last quaters sales not what I am asking now.
Should I give her a 1 year limit to invest more at the current rate??
Sorry this is long winded but it is a big step for me now.. Thanks
[ April 03, 2003, 12:52 AM: Message edited by: Robert Thomas ]
Posted by KARYN BUSH (Member # 1948) on :
10% now and 40% later(if the company is doing great and it's a good deal for me)is how i am reading that...somehow it doesn't quite seem fair to you...what i would do is let her buy the 10% (only if you feel she is someone you can partner up with...make damn sure of that!).look at your business equity now and if it goes up say 15% then so does the price...business is risk, if she's not willing to cough up the $$ and take on some risk why should you take her on as a partner..partners are partners and should share the great times with the bad..she sounds fair weather to me...i wish you lived closer..i'd love a partner sometimes...i've seen your work and it's awesome..i personally would only take someone on that works as hard as me and has something to really offer..like talent cash and/or equipment...is she a fullcharge bookkeeper or someone with a business degree that can really be an asset? or she more of an employee looking for a job? you also don't want someone that owns 10% of your business and never anything else cause she loses interest...don't make any hasty decisions...you don't want to team up with someone and then wish for their early demise because they now own part of your company and you can't stand them...good luck to you!...i myself would hold out and interview more prospects..or find a silent partner with $$, then just hire who you need.
[ April 03, 2003, 08:57 AM: Message edited by: KARYN BUSH ]
Posted by Bob Stephens (Member # 858) on :
You better listen to Karyn. She is dead right on every count.
Posted by Robert Thomas (Member # 1356) on :
Karyn, She has experience owning an art gallery, so she has business & sales exp.
She hasn't returned my call, so I think she it out. I have had a ton of calls on the ad and she was the closest fit, but she was questioning the compensation part, mainly the 10% sales commission. I quess she was doubling the price on art sales.
