I want to create business to where I can market individuals that I believe in with a skill/trade with a very small amount of capital. How should i structure this? Example: i start a marketing firm with a few people that know marketing, i give sweat equity to them while our firm makes %20 a year from each individual we are marketing. I feel like equity and percentage is a way to avoid needing large capital up front
Interesting. I have done this on a couple of occasions, maybe not this exact model but close.
One approach would be a Speakers Bureau. Another would be to structure it as a full service agency or as "full" as your colleagues' backgrounds permit. Be sure to create a vesting schedule, even sweat equity can get away from you if one is not careful (says the voice of experience).
A third option would be an equity crowdfunding startup. indiegogo has partnered with MicroVentures to offer the JOBS Act of 2012 based solution for US based companies.
I would enjoy sharing some war stories or answer any pointed questions at your convenience, let's schedule a time.
Answered 6 years ago