Percentages

[Lisalisa]

I have a consulting which is currently generated about 200k in 6 months. I need a second business partner who is able to close deals, so I can move forward to get more business?

I had a candidate in mind who I thought we would be a great team? The cons....he has in no experience in the industry and he lives in Chicago and I am in New York. He says he will be in New Jersey or New York in or about 6 months. He was interested in 35% but he said he doesn't do sales? He wants to monitor my two workers from out of state and watch my books, fly in when needed, so I can introduce him to my contacts. And if I get a Refferal he will close. Do invoicing. Interviewing for software.

I offered him 50% for every Refferal while he lives in Chicago, when he moves to NY we can revisit partnership. My business is a consulting business which needs minimal capital which I have. I told him why would I partner with someone to do back office support when I can hire someone?

I just need to know if I am missing something I am not understanding...because he was highly offended with my offer.

[Freelancier]

Anyone who gets "offended" about the terms during a negotiation is either faking it or not mature enough to be in a business negotiation. It's business, not personal.

As for what you're doing, not clear on why you needed a second partner in the first place. Start there. What problem are you trying to solve with your business? Is it sales or management?

[huggytree]

why don't you just hire a salesman and keep ALL your %

doesn't sound like your chosen partner even wants the job or can help you....I don't get why he is your chosen partner when he 1. doesn't live near you, 2. doesn't know the field, 3. doesn't want to do sales---so how can he close deals????

you need an employee, not a partner

[Lisalisa]

Huggytree - Thank You. I agree with you. He wants 35% to mange operations. You brought up some very good points which I have been thinking about. The potential partner mentioned to me running a small business is very different than the 50 million dollar operation I ran with my prior employer.

I will stick with my offer. I would like him at the front line and assist with the developing of clientele. I don't feel comfortable handing over the operations.

[Lisalisa]

Freelancier- Great question. I was looking for someone to help me market the business. I need assistance with building clientele and marketing my business and getting the word out.

I was under the impression he would assist me with building clientele.The other day he stated he wanted to monitor my two employees, invoicing; which really is not needed due to the fact my clients pay in full prior to receiving the service.

He basically wants to run my business.

[Freelancier]

So it sounds like a mismatch between what you feel you need and what he feels he wants to do. Cut your losses and move on to another candidate.

You don't need a partner to help you market and sell your business, you just need someone good who you can compensate based on the new business that's brought in. Partners are people you can't do without, so don't give that away unless you're convinced that the one person you want is key to your overall success... and then make that partner buy in, never give away partnership shares. Talk to your attorney about how he/she would do it in his/her firm.

[Lisalisa]

Freelancie - Thank you so much! You are absolutely right!!! I will cut my losses and move on!!!! Never give away my partnership shares!!!!

My attorney and my accountant were questioning my decision, they both felt I didn't need a partner. They both advised me to go back to the potential partner and to see if he was interested in a commission based salary while he was in Chicago.

Thanks Freelancie you really made me see exactly what was more important.