Re: Question about Joint Venture

[Guest guest]

a,

My experience was being part of a renaissance festival that ran for 16 weeks.

We paid a sizable rent, and they held all the cards. For me, that got old

pretty quickly.

A lot depends on your personality and the size of your ego. I say that

because many people are very happy in a situation like that, wanting to do

business

- pure and simple. BUT there are also many of us with entrepreneurial

spirits who will not bend as well to the whims of others. So some of it is a

case

of WHY you went into business for yourself.

Tina

The Essential Herbal - the magazine by, for, and about herbie people and the

things they love - HERBS!!!! Subscribe today!

www.essentialherbal.com

[Guest guest]

Oh, my, no MBA here, I am TOTALLY confused!!

Personally, listen to the little voice inside...it always knows...but ya gotta

listen...

All the best to you and your potential!!

Sandy

Question about Joint Venture

Hello, All:

I am considering a joint venture and would like some insight from someone who

may have done one (I KNEW I should have pursued an MBA -- smile).

I am trying to figure out what might be the " norm " for these kinds of things:

Here is the scenario I am considering:

1. I become " part " of a joint venture and future growth possibilities with

the company in consideration (Company X). I would relocate my business to this

new space.

2. Since I am not putting down any capital to be part of this joint venture I

pay a certain amount for rent and x% of profit share split in return for

inclusion in advertising, an office decorated the way I want and other

resources

of Company X. As the company grows, I will be part of that.

3. My business cards on site would reflect a Quick of Company X, not

a Quick of Quickscents Aromatherapie.

The question I have is that as a sole proprietor, I have worked hard to

" brand " Quickscents Aromatherapie. I also have some outside projects and

opportunities that have been offered to me, which in one instance would also

be on a

commission basis (but no rent involved) since my time would be more limited.

Is it reasonable to expect that these " outside " activities would be under the

rubric of Quickscents Aromatherapie and all the profits go to me, or since I

am joint venturing with Company X, that I not take these preexisting projects

as Quickscents Aromatherapie but as a Quick of Company X, and pay Company

X a percentage, or not take these outside projects at all in order to focus

on the business at Company X?

Without going into all the details the joint venture really is a good deal,

especially to position me for current and for future growth. I'm just not

sure

how to handle Quickscents Aromatherapie as a separate entity without overly

complicating things.

Just wanted to know if anyone has experience along these lines. I have

already consulted with a lawyer -- so I don't need the advise of see a lawyer.

I

need practical, real-life, " been there-done that " input.

Thanks. I hope everyone is having a great holiday weekend.

Sincerely,

a

Personal Wellness Coach, Wellness Broker &

Life Strategy Consultant

Quickscents Aromatherapie

www.thearomaconcierge.com

" If you change the way you look at things, the things you look at change. " --

Dr. Wayne Dyer

[Guest guest]

a,

Been where you are and these are the questions that helped me decide. Not

meaning to put a damper on your excitement but ask these questions and know

the answers...before you decide.

First...without major details on the whole picture...these are my concerns,

as was in my situation.

I don't expect an answer, but know the answers for yourself.

1-Is Company X expecting your labels to reflect their name only? Most do. In

my situation, my name wasn't allowed.

My products became theirs, I was to be only an employee of company X. But

still make all the products and supply all the ingredients. Do you have any

input on that label?

Will company X allow Quickscents Aromatherapie to still exist? Most

wouldn't. In my case, all sales went through company X only, nothing on the

side. If I sold anything it was through company X only. Every item labeled

as such...I was just an employee of company X. Shadow Lake (me) was dead in

this case. Non-existent. Or it better not be. I could be sued if I sold

outside company X.

How much time have you put into making a name for yourself? Is it worth

losing all that to company X? (if they won't allow outside sales in your biz

name)

Is there a contract, if so for how long? If they don't take off as planned

and you can't use your company's name to sell your products until the

contract is out, what kind of limbo will your products be in (and cash flow)

while the contract exist. Will this cause " dead in the water " situation with

a lot of product, no legal way to make income from them until the contract

time is up..Your hands could be tied.

Now, a good contract could be agreed upon that you remain as Quickscents on

the label if they want you bad enough and they get a percentage of sales for

say..a year..but generally if your name remains, they don't work as hard to

sell product because they have no reputation as risk.

Another thought......who will carry the insurance on the products? Who will

be liable? Are they the same person? If worse case and a suit pops up, both

the manufacturer and the company selling the products will be held liable, I

think. Maybe not, I'm not an attorney, but they could answer that for you.

Just offering something else to think (be concerned) about.

Will they be offering a store front? Will they have people that know the

product inside and out, so they can teach the public about the products and

be able to answer any question a client may have about them.

I have a lot more thoughts, but these will give you a place to start.

I decided against the venture offered to me because...#1 I would lose myself

in company X, lose all the time and dollars invested to get my business off

the ground and would literally become company X. #2 I wasn't willing to give

up my business name and use theirs and still put in all the work as I did

before. More money may come yes, but no validation of who I am.

Instead I chose to find distributors who work for me, I make the rules, in

the comfort of my office at home.I'm working hard every day to make MY

business big, not someone else's, losing myself in the process. Partnerships

are not all they're cracked up to be. Someone, at one time or the other,

proves to not be bound as tight as the other or work as hard as the other,

or takes more than their share.

This is all just my opinion..nothing more.

I wish you all the very best in what ever you decide. Just go into it with

eyes wide open.

Blessings,

Pam

[Guest guest]

another question comes to mind...once, if ever, the contract runs out and

you decide to go back to selling without companyX, back in your own name,

are they going to allow you to sell the same products they once sold in

their name?

I spoke to a lady when I was going through my thoughts and decision making

and she did a similar venture when she was about 4 yrs into her own

business...In her contract, in small print she didn't see, was... the

products once sold by company xxx were not allowed on the market ever if

contract was broken or extinguished ..or something to that matter....

I don't know the exact wording....but you're headed right by talking to an

attorney. People find loop holes all over the place when it comes to money.

Just walk softly and carry a big stick. <smile>

Do what makes you happy and enjoy the ride.

Pam

[Guest guest]

oops hubby corrected me on my last statement.

corrected...

In her contract it stated something to the tune of.. after contract expires

between company 1 and company 2, any of the products that are sold, company

x still gets a shared % of the profits for x number of years.

I stand corrected, sorry for the last memory loss.

I think she spent a fortune jumping through hoops and changing recipes, name

change, etc. etc. to get through that loop hole.

Pam

[Guest guest]

I am right now in the middle of a horrible mess brought on by my

business partner who ran amok. Several horrible messes. So I am very

leery of doing anything with anyone if their actions affect you in

any way. I probably would have fared better, had I sought the advice

of an attorney to begin with, as you have. Alls I can say, is,

really look into their past history in everything. Even personal

info can help, because it shows how they think and react to things.

Look at their communication skills, and relationship skills. You

want to be sure you will at all times be heard and respected in your

opinions and choices. Consider their values. Don't listen to what

they say, just go by their history, and what they do. Keep what you

can to yourself (your sole proprietor interests), at least until

you've been with them for 6 months or so, and can evaluate their

skills from the inside. It may be hard work at first, but the mess

to clean up afterward is worse, if they are flaky or dishonest, or

just have different values than you. If others have been involved,

interview each one and find out their experiences. Especially, look

for people who have bowed out in the past and contact them to find

out why. Cover your ass every direction, and don't take short-cuts

or the easy way. You can pay big-time in the end. Go ahead and

complicate things now, to save the complications in the future.

> Hello, All:

>

> I am considering a joint venture and would like some insight from

someone who

> may have done one (I KNEW I should have pursued an MBA -- smile).

>

>

>

>

>

> Personal Wellness Coach, Wellness Broker &

> Life Strategy Consultant

>

> Quickscents Aromatherapie

>

>

> www.thearomaconcierge.com

>

> " If you change the way you look at things, the things you look at

change. " --

> Dr. Wayne Dyer

>

>

>

[Guest guest]

I'm jumping in here thinking that it is time to get a lawyer to look over

everything. Wording could have more then one meaning and yet look good, to

untrained eyes. You don't want to bind your self up with any thing that's not in

your favor. Just my two cent. Better safe the sorry.

S D NSA

Homemade Candles,Bath And Body Lady

http://www.breezeenterprises.com