Ok... here's a good BIZ question...

I got a dedicated server, configured it to take on clients, created the front end (website) for the hosting company, setup the billing program, got 2checkout.... everything is ready to rock and roll...

Next thing is to start my local AD Campaign and getting some clients onboard and supporting those clients...

Here's my question... I am looking to take on a partner in this venture, because I know that I need atleast one other person to help with the tech support until my client numbers grow...

So I proposed to some people that i know... that they come on board as a partner and do a (60/20/5/5) split... I am trying to come up with a formula that will be a reasonable amount for them to contribute/invest into this venture... this is hopefully a lifelong investment and I don't want to lowball myself... but, this is a fairly small operation... using a dedicated @ another NOC... but you never know...

Pls provide some tips of those who started as a one man operation... what was your profit sharing formula... and did your parnters make an initial investment...

hope i make sense...

Projected Yearly Startup cost so Far...

EDITTED
$2000usd - server, scripts... and i did the design
+ 1000 (future local Ad Campaign)

After a year I assume that there will be Toll Free and other HR costs... etc

Sounds like some thought has been put into this. Sounds like a pretty good plan to me except you could have spent $500 instead of $2000 for a server, scripts and design.

Please add more info about your location and f.e. if you need people to invest money or people that can help you with your client base (support staff) ..
That local add compain, wil it be focused on your are (f.e. flyers to companies or maybe paper ads) or more locally as in banners on sites that cover the part of the world where you are living.. .

Starting with a partner is dangerous, one person will feel hard done by. The best thing to do is employ someone.

I editted the startup cost... the number projects the initial year startup cost... I equate "startup" to lasting 1 year... then I will explore other costs (HR etc..)

Located in Toronto Canada but my server is in a U.S. NOC...

about the employee thing... my budget is not there to pay someone $15/hour right away... cuz the volume isn't there yet... and I don't have the reserve funds to pay out... if i had revenue right away... then I could pay someone on a per support request basis... partner will give me a much needed cash infusion and allow for better marketting... remember i am small...

I am just looking for investors to come aboard... a silent investor would be nice but I thought it would be nice to have an investor that can share the tech support responsibilities... but what should i have as an initial investment "cost" for that person

I belong to a niche community and will post ADs in our weekly newsletter.. much cheaper than the local paper... once i focus on that market and build clients... i might branch off to the newspaper.. this is an example that i recommend to everyone... eg) if i was Italian... i would post an AD in the local Italian paper...

my other source of advertising is through an existing website that caters to that niche community which I own/operate... 400,000 pageview/month... so i might get 1 or 2 sign ups... and take it from there...

Looking forward to more responses...

If you were here, you could pay someone $1.75/hour.

Originally posted by megagente
If you were here, you could pay someone $1.75/hour.

Hello,

I was just wondered, where are you located that you can hire someone to help you with techie stuff for US$ 1.75/hour ?

Quite cheap and interesting. So you must be providing your clients with superior customer service. Right ?

Superior customer service for 1.75 US$/hour? I don't want to offend anyone, and I know there are countries where people don't make the same amount of money as thye could do in the US or Europe, but please... this can't be right for a qualified support employee ... at least not with the samne education as the ones that costs a lot more ...

ummm... i think we need to get back to the guyz original question...

Yup you are right.. sorry about the offtopic remark