We are planning to associate with foreign company or individual to handle sales and clients in their country. Our service is software development. Who can be ideal partners for this venture? What terms should we set for this partnership? What percentage of share we should offer in each business deal?
1. Ideal Partners: accelerators/incubators and anyone else who work with startups and small - medium businesses looking to develop software.
2. Terms: there are various structures. It all depends on your needs and budget:
A) A low set monthly fee + bonuses.
B) Commission based (set commission or gradual commission based on the value of the project)
C) Lead based (referrals).
3. Shares: do you mean shares in the new company that you're creating or shares of the profits? You need to clarify your question. Either way, the 'shares' should be based on the value that this person is providing you. Better to have half of a $100,000 dollar 'cake' (business) than 100% of a $10,000 'cake'.
I can give you advice on any of the above, and help you draft any of the above agreements if/when you reach that stage.
I've successfully helped over 300 entrepreneurs and would be happy to help you. After scheduling a call, be sure to please send me some background information so that I can prepare before - thus giving you maximum value for your money during the call itself.
1. When choosing the organization for your association, determine that the people in the organization genetically will work for your objectives. Take initiatives to manage their performance.
2. Take time to write your own terms and expectations and have it approved by a law organization. Feel free to negotiate the service terms with the potential suitors.
3. Plan out how much share you will give away during each stage of development of your organization. Plan to never give away an excess total share of %50 by the time your company is completely mature. Keep control of your company so that you may perform your objectives well.