My boss has recently told me that he has to declare bankruptcy due to a massive client who never paid. He is offering me partner status in the next company and I could really use some outside advice. I’m 20, in college, and planned on going into sales. My business on the side hasn’t had any traction for a while due to my lack of connections, but my boss has consistently had work for my company since his network is huge. He’s s offering ownership in a new company which will have the services I offer, with his connections, as well as all of his contracts from the previous company, which is well into six-figures. I’d be bringing skills and labor to the table. He’d be bringing that, plus connections and current contracts/relationships.
Where do I start? This seems like a great opportunity but throws a wrench in my other plans. Any outside opinions, and questions are welcomed! I’ve never faced something like this and have no clue where to start.
Make sure the operating agreement require everyone agreement to sign before taking on a loan so he doesnt take ona loan himself. For a service business, even if 1 customer doesnt pay, it can not lead to bankrupcy unless he has a lot of employee. From the sound of it there is only a few people. A few people expense isnt enough to be out of business due to 1 customer not paying, well unless the bulk of it is from buying material/parts for them, which is another lesson you need to find out learn, on parts. Need deposit and full payment early. Generally IT, you pay someome 20-40 dollar an hour, and charge 100-150 an hour. So 1000 hour will be 20k-40k labor cost, you charge 100k-150k, after paying lanor thats a good 60k-110k left over. If ur doing the work, you need a salary. If he does some work, he also get a salary. Then whatever left is split. It seem like he is bad at managing money so find out more detail and be involve. He dig himself in the a hole. What make you think he cant dig you and him in another hole? So fully understand the current books and why he got himself iny he hole, yes 1 compant didnt pay. But what about the other company, total money came in, where did it all go? Its a great opportumity. Just make sure you tread carefully