Setting up own business

[infernolord]

My frn and I decide to set up a business. Thing is i forked out most of the financial and do the marketing part where else he do most of the job (setting up the machinery).

1st time do business. Want to ask the expert here on the financials part.

1. I was thinking of fixed salary plus "commission" for additional services he manage to coax his client in getting our services. The problem is initial start, i will be paying off from my pocket right since there is no revenue.


2. He suggest 70%/30% spit after cost for each job he did, ie. revenue minus cost and then we spit 70% to him as he do the job and 30% to me.How much is put back into the business equity? If we do a job spit basis, i get 30%, how long am i going to breakeven and grow this business ?

My questions is aside for the two options, what are the other options ?
Usually what is the process like. Cost and pay, how to spit.

PS i am working on this part-time basis, he is taking it up full time for this business.

 

[reddevil0728]

My frn and I decide to set up a business. Thing is i forked out most of the financial and do the marketing part where else he do most of the job (setting up the machinery).

1st time do business. Want to ask the expert here on the financials part.

1. I was thinking of fixed salary plus "commission" for additional services he manage to coax his client in getting our services. The problem is initial start, i will be paying off from my pocket right since there is no revenue.


2. He suggest 70%/30% spit after cost for each job he did, ie. revenue minus cost and then we spit 70% to him as he do the job and 30% to me.How much is put back into the business equity? If we do a job spit basis, i get 30%, how long am i going to breakeven and grow this business ?

My questions is aside for the two options, what are the other options ?
Usually what is the process like. Cost and pay, how to spit.

PS i am working on this part-time basis, he is taking it up full time for this business.

1) can always record down the "commission" earned and pay later?

2) You can calculate how long it takes for you to get back ur investment with this split right? you see if it makes sense?

 

[eD|t|0n]

My frn and I decide to set up a business. Thing is i forked out most of the financial and do the marketing part where else he do most of the job (setting up the machinery).

1st time do business. Want to ask the expert here on the financials part.

1. I was thinking of fixed salary plus "commission" for additional services he manage to coax his client in getting our services. The problem is initial start, i will be paying off from my pocket right since there is no revenue.


2. He suggest 70%/30% spit after cost for each job he did, ie. revenue minus cost and then we spit 70% to him as he do the job and 30% to me.How much is put back into the business equity? If we do a job spit basis, i get 30%, how long am i going to breakeven and grow this business ?

My questions is aside for the two options, what are the other options ?
Usually what is the process like. Cost and pay, how to spit.

PS i am working on this part-time basis, he is taking it up full time for this business.

A bit lost in your 2. When you mention - Suggest to split 70/30 after cost....is his fixed salary or commission already in the “cost” already?

If revenue minus cost then split 70/30, then nothing is going back to the business equity...every single job net profit is going into the pockets your partner and you...

 

[AtheistcumCatholic]

Looking at what you have described, you seems to bear all the risk, you upfront "most of financial". so what is the risk is he taking?(this is important) he start the business with you and gets 30-70, a fixed and comms. that's a good deal.
if he has no risk and he runs the company, chances of the business failure is very high.

and you say how long am I going to break even. isn't this a shared business?
if both are co owner. depending on how much each invest in the business. if he run the jobs. basic allowance only, and every 3 or 6 months review. don't talk about fix or comms. why would you want to fork out money from your own pocket him more since you have upfront most of the cost and you guys are owners.
if he is have a fix pay, you too should have.

marketing is one of the most important aspect of any business, which you are doing it. personally I would pay a marketer more money than the guy doing the job.

For startup, most of the money should go back to the company and review accordingly.

you have to come up with a plan that the risk is leverage accordingly with co owners. since what he suggest is not in your favour I would rather own the company and employ someone with a fix salary and get the job done for me. moreover this is the best time find staff. i am quite sure there are a lot of people looking for jobs.

good luck.