Web Hosting Talk : Web Hosting Main Forums : Running a Web Hosting Business : Starting with a partner? good or bad?

[MarvinH]

Hello everyone,

Im just curious how many of you have partners in your companies..im considering it but i know there are lots of pros and cons for having them and not...what do you all think?

[tamasrepus]

My company has three partners. Each with a different (and somewhat overlapping) skillset:

• Programmer/Accounting
• Programmer/System Administration/Design (guess who?)
• Design/Accounting

Whether it's good or not... I honestly cannot say. It's difficult to get some decisions made, but working as a cohesive unit we've gotten some nice development projects that we'd not been able to alone.

[waxdoll]

* Also it depends on what sort of business you are going to do.
* If you are going to start a business that there is no need a group people to manage, then there is no necessary to have partners
* If you think its hard for you to manage your business, then go for the partners

[trendy]

if you have web disignning ability and programming knowledge, and some time to deal with the support, i think that its ok to start alone at the beginning then when busines expands then you look for partners my 2 cents though

[Patrick]

Just some advice, if you're going into any business with a partner, always have a lawyer draft up some contracts so no one gets screwed.

[trendy]

Originally Posted by Pat H

Just some advice, if you're going into any business with a partner, always have a lawyer draft up some contracts so no one gets screwed.

just in case if some issues pop up.

[Adrian]

Having a partner or not is a very personal thing. It will suit some people but not others. Its a question only you can answer.

For me, I don't think I could ever successfully work with a partner, I like doing my own thing, and would prefer to employ people who have the skills I do not have rather than have them as partners.

[jojo14]

Originally Posted by Adrian

Having a partner or not is a very personal thing. It will suit some people but not others. Its a question only you can answer.

For me, I don't think I could ever successfully work with a partner, I like doing my own thing, and would prefer to employ people who have the skills I do not have rather than have them as partners.

I agree with your post. I have a buddy who started a hosting comany with a partner and regreted it the whole time. he eventualy just sold his half out. He said they never realy got along much. I would suggest starting by yourself and hiring people as your company grows.

[XeHSean]

Ill give you some personal advice on partnerships. If you decide that you want to go into a partnership with someone, spend some time thinking on who it is and don't just take the person with the biggest pocked (something I did when I first started out ). The most important thing is that it is someone that you can see yourself getting along with for a VERY long time. Often times people will start developing problems with their partner which will eventually start to cause fights. This is VERY bad when the two work together. You want someone who is amable and that you can easily get along with, someone who can donate money (not someone who will be feeding from your pocket), and also someone who is someone intelligent about the industry (don't get someone that is not fit for the job).

You should keep all of that in mind when making this big decision. Basically, it comes down to: do you have the time, money, and knowledge to go into this industry yourself, or would you prefer to have a partner to help you out?

I hope that this helps you

[danushman]

I could not imagine life without a business partner... then again, I'm very lucky to have a
good one (go Zak!)

Theres advantages and disadvantages, of course. One of my favorite perks is the ability to
take time off -- without a partner a vacation would be impossible. One of the other good
advantages is that having business partners will keep you in check. You'll think twice about
what you say and what you do because that someone will call you out on it if it was a bad
move.

The obvious disadvantage is that you only get a chunk of the business.

My suggestion is if you're looking for a partner, fine one that compliments your skills.
If you're good at system administration, start your business with someone who knows
about business...

Best of luck,

[byteventures]

I have developed businesses with partners in the past, and my experiences have been both positive and negative. There are certain aspects of business that are affected when you have two people with an equal stake in the company. Control is by far the most difficult aspect of partnerships, as both individuals often have different perspectives on issues that arise.

It also depends on the size and growth of the company. If you are starting a small business, sometimes you do not need a partner to help you with operating the company. If you simply need additional capital to fund your operations, find an investor.

When deciding who you would like to partner with, always look for a person who is open minded and has complementary skills.

Best of luck with your venture.

[trendy]

Talking about investor, how should the profit be calculated ? any idea?

[starsearcher]

I personally think it's great to have a partner. Well, of course there are pros and cons. But, try to make sure that person is a trustworthy person. And to be on the safe side, like what has been mentioned, having a lawyer drafting a contract is good.

[byteventures]

Investors assume 100% risk on their investment, so they normally like to see an exit strategy for the company to ensure that they will receive their money back. Sometimes their return is based on the payout, other times they are in for the long run and take a percentage of the sale price when the business is sold.

[Real-Hosts]

Yup, if your going into partnership.
Know your roles and work loads... So it won't come down to 'but its your turn to answer all the stupid support emails today' and then you guys split over the profit cut...

I'm in it with two other guys, and I think we have to sit down and talk a bit more now we're expanding, if you ask me, one guy is good because he's pretty, he's got the money for his cut, and he'll just nod but put his .02cents in if something doesn't seem a good move... The other guy is very knowledgeable, but needs to be slapped on his wrist a bit to keep it professional, and has the money for anything. I on the other hand, work hard for whatever I get, so I can put money into this, to be part of it, and am keen on making it a bloody big success... Each to their own.