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  1. #1
    Join Date
    Apr 2004

    Partnering to Share Costs

    Hi there,

    Costs are always cheaper when they're shared.
    So, I'm thinking of finding a Toronto-based small business that also needs a data centre, office/support staff and sharing resources.

    Has anyone tried this approach?
    The biggest savings could be in support staff, methinks. Also, as you know office space is cheaper in bulk.

    I don't think a merger would be needed.

    Any thoughts on this idea? <snipped>
    Last edited by ldcdc; 06-17-2009 at 05:31 PM.

  2. #2
    Join Date
    Jun 2007
    GA, USA
    Yeah things can be cheaper when they're shared, but unless you find a reputable or trusted company this could turn into hassle fast. If you really do want to go this route, my best advice would be to share costs -- but only for as long as needed. Once you can pay for everything, shake hands and split to paying everything for yourself.

  3. #3
    Join Date
    Jul 2005
    New Jersey, US
    Sharing space is one thing, but sharing employees is very hard to do because how do you determine which partner gets priority or which one gets what time period, etc. It can turn into a very big problem.
    PlatinumServerManagement (also known as PSM)
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  4. #4
    Join Date
    Jul 2003
    Waterloo, Ontario
    You are looking to share a data centre or colocation space?
    Right Servers Inc. - Fully Managed Cloud Servers in Canada. Join our White Labelled WHMCS Cloud VPS Reseller Program to become your own host!
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  5. #5
    Partnership is always good for saving costs ... but as others have said, it might turn out into something problematic in the future.

    There should be clear agreement to create partnership to avoid any unexpected issue in the future.
    Gabrielle ~ Host Department LLC
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  6. #6
    Join Date
    Apr 2009
    "Money makes the world go round"
    I strongly believe in this quote - when money starts to roll in, there are always issues with a Partnership setup in Business. I recently got out of one and I'm glad I did at the right time.

    There is a demand for Support Services anywhere in the world so if you can focus on this niche and grow that will be great. You don't need an office to start up with, you can start small and grow from there.

    Good luck!

  7. #7
    Join Date
    Jun 2009
    Partnerships make businesses complicated. If they were to be made. It has to be defined in detail in writing on who gets what, who does what, etc.
    Jweeb Solutions
    Singapore Web Consulting & Solutions
    Web Consulting - Web Hosting - Web Design & Development and more... - Making the Web Simple!

  8. #8
    Join Date
    Apr 2004
    Thanks for the feedback! I guess the answer is that it is not enough to find a partner but to find the right partner.

  9. #9
    Join Date
    Oct 2007
    Hong Kong
    I would avoid partnership whenever possible. There are definitely other ways to reduce your costs other than having a partner. What about sub-letting part of your office space to freelancers? | HostGamma Europe | HostGamma Asia
    USA, Canada, Brazil, UK, Netherlands, HK, Taiwan, Korea, Japan, Singapore and more

  10. #10
    Join Date
    Dec 2001
    Above The Clouds
    Partnerships can work but many don't. I have a partner at HostNexus who is also a childhood friend (since I was 13). It's only our strong friendship that made the partnership work. Because when times are hard you're under a lot of stress and this is when most partnerships fail.
    Laurence Flynn @ atOmicVPS LTD
    Linux & Windows Cloud Hosting Solutions Powered by OnApp
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