I currently own a small but very successful digital eCommerce agency that design, build, support and market enterprise eCommerce sites. My idea is to launch a separate eCommerce agency entirely focused on an eCommerce market that is more towards eCommerce SMB's. I have been trying to figure out how I can use my experience and knowledge to find a hungry young co-founder that would like to start up the company. I finally found that person who I've known for some time, he's been freelancing for several years and only making $40k a year. He isn't as experienced as myself, but with guidance and mentoring I believe he can grow into a great leader. Ultimately, I'm trying to figure out how I can eventually move away from being an active partner and into more of an advisory role once the company is profitable. I'd like this to be a separate company I start-up and is run by our team. I feel like I can set up this agency to grow with the team around it, as I have an idea to find ANOTHER co-founder who will be responsible for business development, this way we have two active partners working in the company who have more of an invested interest in the companies success. How am I contributing to the company? I'm bringing all my experience to the table and implementing this into the agency, which is the advantage I bring to the business. Here are a few details about my experience and INITIAL involvement with this startup agency: - Business Development (This would eventually be replaced with a full-time employee once the business has positive cash flow) - Strategic Partnerships - Process Implementation - SOPS Setup - Pricing Strategy - Marketing Strategy My co-founders responsibility: - Sales initially - Project Management once we have projects rolling in - Web development initially until we grow to be able to bring on a full-time hire - Payables & Receivables Questions: 1.) What type of partnership role should I be considering for myself? 2.) Should I be getting a salary if I'm not actively involved in the business after year 1/2? 3.) How should I be setting my schedule to contribute to the company from advisor role? 4.) How should the partnership ownership be split, considering my future involvement in the company? 5.) Any tips on negotiating the partnership so that its fair?
The question is too long and there are so many questions in one post. Moreover it is an year old, still I would answer you in simple terms.
You should figure out what excites you and what all challenges you love to face. There will be few challenges that you will hate to take up. Therefore prepare a list of what do you want to do and what you don't want to do.
Now you have to mention everything in the partnership agreement (deed) so that you can formalize the entire relationship in a legal way.
I hope that helps.