Hey guys!
Some partners and I have an idea to start this apparel and merchandising company. Lets say there are 4 of us, 2 doing art/design/marketing materials, and 2 that are doing "some" art/design and also helping with some back end business stuff. This is a setup that is kinda like Fubu clothing, where they had 4 partners. I personally dont think more than 2-3 partners is good, but unfortunately, we all have skillsets that complement each other, and we all want to work together. Recipe for disaster? maybe. But we want to do some due diligence "before we start", and see how this will work, at least on paper.
Im unclear as to how we would divvy up revenues.
So roles right now might be something like:
artist 1: design, creating marketing materials (2D illustration, marketing assets)
artist 2: design, creating marketing materials (marketing assets, help penetrating foreign markets)
artist 3: design, running the business (e-commerce)
artist 4: design, running the business (brick and mortar)
So with this breakdown, everyone seems full up with duties and has little time for anything else (especially being that right now, 2 of them have full time jobs- at least until we can get a little larger).
But the other issue is, some artists may not be able to look past their design and see work as for the "company". So for instance, say one person's design IP (Intellectual Property) is selling better than everyone else's in merchandise. But everyone has contributed to the sale of the design through marketing materials, building out the back end, sales repping, etc. then there was a team effort, but they may feel that they should get a larger cut.
Should they get a larger cut? (ex- 10% more? as a bonus incentive to stay with the company as a partner?) or should they get nothing, since the next design they do, might flop and someone elses might sell well? Or alternatively, should they get a one time bonus of like $500 bucks for creating a blow up design on top of their company cut?
AND obviously starting out, its not very sensical to be giving out bonuses anyway. What a conundrum!
Should I just forgo all that and expect people to just be "fully invested in the company as a unit"?
Im trying to work this so its fair, the problem is, everyone has good skills they bring to the table and the profits are getting thinned out. We would have to move some major volume (scale) to make serious dough, which is not impossible, but obviously extremely difficult. But I see that size wise, this is most likely not a one man show, especially considering our creative talents being complementary.
Does anyone else have experience running this type of business where you "need" multiple partners, and each are doing a little bit of something? How did you make it work?
much thanks in advance!
-Ty
Some partners and I have an idea to start this apparel and merchandising company. Lets say there are 4 of us, 2 doing art/design/marketing materials, and 2 that are doing "some" art/design and also helping with some back end business stuff. This is a setup that is kinda like Fubu clothing, where they had 4 partners. I personally dont think more than 2-3 partners is good, but unfortunately, we all have skillsets that complement each other, and we all want to work together. Recipe for disaster? maybe. But we want to do some due diligence "before we start", and see how this will work, at least on paper.
Im unclear as to how we would divvy up revenues.
So roles right now might be something like:
artist 1: design, creating marketing materials (2D illustration, marketing assets)
artist 2: design, creating marketing materials (marketing assets, help penetrating foreign markets)
artist 3: design, running the business (e-commerce)
artist 4: design, running the business (brick and mortar)
So with this breakdown, everyone seems full up with duties and has little time for anything else (especially being that right now, 2 of them have full time jobs- at least until we can get a little larger).
But the other issue is, some artists may not be able to look past their design and see work as for the "company". So for instance, say one person's design IP (Intellectual Property) is selling better than everyone else's in merchandise. But everyone has contributed to the sale of the design through marketing materials, building out the back end, sales repping, etc. then there was a team effort, but they may feel that they should get a larger cut.
Should they get a larger cut? (ex- 10% more? as a bonus incentive to stay with the company as a partner?) or should they get nothing, since the next design they do, might flop and someone elses might sell well? Or alternatively, should they get a one time bonus of like $500 bucks for creating a blow up design on top of their company cut?
AND obviously starting out, its not very sensical to be giving out bonuses anyway. What a conundrum!
Should I just forgo all that and expect people to just be "fully invested in the company as a unit"?
Im trying to work this so its fair, the problem is, everyone has good skills they bring to the table and the profits are getting thinned out. We would have to move some major volume (scale) to make serious dough, which is not impossible, but obviously extremely difficult. But I see that size wise, this is most likely not a one man show, especially considering our creative talents being complementary.
Does anyone else have experience running this type of business where you "need" multiple partners, and each are doing a little bit of something? How did you make it work?
much thanks in advance!
-Ty
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