Business Plan. What to look out for?

[Snoopy_inc]

And whilst I know the answers because I've asked the questions before, I must leave that to Snoopy.

What fascinates me in this thread so far is that we have ended up at exactly the same crunch points I did with Snoopy earlier in the 121, albeit by a slightly different road.

Dave, Yes and No.

Yes there are some points that we did talk about that came up here again. What this has done has allowed other point of views to come across and provide a much more rounded answers. more brains are better then one. This may help others that read it or in turn help those that need to ask this question as they may be starting up a venture also.
1) this helps me
2) it helps the members of the forum

I dont do things for no reason..... im surprised you think that i would not take what you told me to heart and use it?

As to dsd questions,

I will basically be the lead on this new project... my time my experience and my understanding will be used.... where as his capital his business will be used. I will built it myself and will work with him on input and marketing advertising etc

[Dave A]

Dave, Yes and No.

Yes there are some points that we did talk about that came up here again. What this has done has allowed other point of views to come across and provide a much more rounded answers. more brains are better then one.

No doubt. But we're still at the same key crunch around the controlling interest? The rest you always had pretty much figured out already.

im surprised you think that i would not take what you told me to heart and use it?

I think you got me wrong. I'm chuffed you delved deeper here. And frankly, given the importance of the topic, I'd be cautious of taking a single point of view myself.

[Snoopy_inc]

i have to admit i prefer a forum format as i can come back to it at any time and review my questions and answers

[stephanfx]

Okay, now here is a question, how much do you trust your new soon-to-be partner? Seeing as you are really wanting to give this a go, i would say trust is the final question for me, if I do not trust someone enough, you can forget it.

Check all the documentation, make sure there are no loopholes which could cost you your side, and a tip, if you find such a loophole, reconsider the whole deal.

[Snoopy_inc]

That is the thing... i trust him as much as i would trust any boss. I firmly believe he wont screw me if we both making money. The problem comes in is when something goes south... i really dont konw how he will act or rather react.

I think if i have the proper documentation in place and work off of that i think it wouldnt be a problem.

[stephanfx]

like i said, find a lawyer, attorney or whatever, and have him/her have a look at the partnership agreement. If you pay someone to look at the documentation, they will have your best interests at heart. If your boss takes offense in this, worry, but have it checked anyway by an independent lawyer, no previous relations with you or your boss. IMO, this should impress your boss, as it would show your thoroughness and competence to make sure the business venture succeeds.

[Snoopy_inc]

where do i get an agreement drawn up... who do i speak to? We havent even got the agreement up yet so i guess i should start there.... but who do i speak to first to get that done? any opinions would be great and maybe contact number of somone you suggest that i should use?

[Dave A]

That is the thing... i trust him as much as i would trust any boss.

Partner? (It's the mindset thing that's my biggest concern here).

I firmly believe he wont screw me if we both making money. The problem comes in is when something goes south... i really dont konw how he will act or rather react.

Sometimes when you make a LOT of money it can get a bit shaky too.

We havent even got the agreement up yet so i guess i should start there....

What sort of business entity - partnership, cc, Pty Ltd?
Any trusts or other types of juristic persons with shareholdings involved?
Are we talking 50/50 or 49/51?

[RKS Computer Solutions]

Talk to Paul, our in house lawyer it seems for theforumsa... http://www.theforumsa.co.za/forums/s...newpost&t=1558

[Snoopy_inc]

Dave i said Boss cause he currently is My BOSS..... there is no partner yet.
I will agree with you on the making alot of money part... that can cause issues normally.

Look i havent formed the business yet, I dont know if its going to be a cc or a Pty Ltd,
"Any trusts or other types of juristic persons with shareholdings involved?" -nope
Still going to negotiate the share holding.... i would say go for higher then 50% and less then 50%.

[duncan drennan]

Who initiated this business opportunity?

[Snoopy_inc]

I did, he has always promised expansion and that he would help with such a expansion..... i think he knows if he didn't he would have lost me a long time ago.

[duncan drennan]

This is just an opinion, an outside perspective...

He is offering you a really good opportunity. He has the cash, the underlying business structure (which will support the new venture), and the opportunity. You bring your skill and the labour. Both are valuable.

There are a lot of employers who would not even bother to offer this type of opportunity to an employee — they would simply tell them to do it, and the boss would retain full ownership of the new venture. There are a lot of employee's who would jump at a similar opportunity, regardless of the size of their share.

The thing is, your boss has carried all the risk of creating a business and employing people, and effectively creating this opportunity. Sure, you've helped as an employee, but you have been paid and have carried no real risk. Now you are being offered an opportunity that has very little real risk, and you appear to be taking that attitude that you should have control of everything.

I think you should be happy — ecstatic in fact — with any share over 25%. I think you are underestimating what your boss brings to the table.

[Graeme]

Well said Duncan.

[Snoopy_inc]

Dsd, I understand what you are saying but the thing is this delves deeper. The main reason he offered this to me is cause he doesnt want to offer a % of his current company to me of which i was promised. I have agreed with him that it is possibly better to start a new venture instead of him having to split things and explain himself on certain spendings etc within the company. The new venture alows him to get off having to give me a % of his current company. I know it sounds selfish but it really isnt. I have been promised a share of the company for the last 3 years. It is only happening now.