Cautions about finding a business partner

[topsoul182]

So a guy that has his own studio approached me on facebook about becoming business partners. Right now I'm working out of my basement and I would love to expand and get a rental studio with a partner but I have some hesitations on it. I'm just curious as to what I should worry about.

I guess I'm just looking at this worst case scenario. What are some things that I should make sure to do to protect myself? I never met the guy before but he is from my area. I plan on meeting him for lunch sometime soon but I just don't know what questions I should have for him.

Any tips/suggestions would help

 

[The Unavoidable]

I'd say get to know the guy. Meet up a few times for coffee/a few beers and talk it out, discuss buisness plans etc.

 

[Jarkko Mattheiszen]

Nine times out of ten these guys are looking for someone who can bring in clients of their own because things are slow. Not necessarily a bad thing (if you do have clients, of course).

 

[egan.]

Jarkko is right. Also though you need to figure out what "partner" means. Does he want an employee? A gear pool? Some one to chip in on the rent?
The worst case scenarios are getting into some sort of situation where your gear gets swallowed by his businesses bad credit or a law suit.
Get to know him and once you define the partnership make sure it's defined in writing.

 

[XxSicRokerxX]

i agree with jarrko.

I used to work in sales. Something my sales manager addressed constantly was "working smart" and "getting others to do the work for you" it sounds like he is trying to drive in my more business by utilizing you.

What i used to do: I would walk around the community usually around businesses ask to speak to their manager and tell them about the "community outreach program" we were doing and if he wanted to help with the "community outreach program" and by doing so we would give him "complimentary" goods. Usually by him "helping" as he thought, he was actually working for us because "helping" would usually involve him/her slipping in a few business cards/ flyers into their new member packages, or us coming by his business to solicit our product to their clients, or actually since we were allowed indoors to solicit, our # 1 target was his/her employees. Sure he/she got some good things out of it, but we usually drained the cow til there was nothing left. We would do this over and over again different businesses.

First of all find out exactly who he is when you meet him in person (for all you know he's probably just a recruiter lol) if its the main guy try to figure out if he's a "i'll scratch your back if you scratch my back" analyze him, and keep asking yourself will he will scratch your back if you scratch his (sounds funny i know), that way you know if you guys will be working as a team or if hes a jerk. If hes not that type of guy and you have a gut feeling he isnt then i wouldnt do it. After the analyzation process figure out his objective. Figure out what exactly he wants to do with you (if he wants you to bring work with him, or work for him) then find out what "complimentary" goods you get out of it if its worth it take it.

If you understand his objective and if there is compensation make sure you get it in writing nothing word of mouth. And always remember if it aint broken dont fix it. If you are doing fine in your basement, dont try fixing something that isnt broken. For all you know once you bring the clients to his studio its buh bye clients.


If he literally wants to co-own or co-start something with you then thats great its 50/50 but get that in writing too. Watch the movie SOCIAL NETOWRK you'll learn a lot about politics and how shady people can be.

 

[topsoul182]

He messaged me again today saying that my recordings sounds really great for being ITB. He went to XXX university for recording and he can teach me a lot about analog recording. He owns a mixing console and thats something I would be interested in learning. He also said he was looking to get a rental space together. One thing I will make sure is to get things on paper if we do agree to work together. I plan on meeting him for lunch some time next week.

"And always remember if it aint broken dont fix it. If you are doing fine in your basement, dont try fixing something that isnt broken. For all you know once you bring the clients to his studio its buh bye clients."

Thats one of my concerns that I was thinking about last night. I don't want him to be an asshole and put a bad name with me. I think the best route to take is just split the rent and share gear. We would each remain our own separate studios and just split days.