Business Partners

blunomore said:
Do not mean to argue with you, but if he e.g. wanted to supply any business with equipment, the legislation surrounding procurement would oblige him to be BEE compliant IF he wants to win a tender/contract.

Also, banks would much rather give funding to businesses who are BEE compliant. This is reality.
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A small business like his will not really be competing for tenders and there wont be many tenders for sports equipment anyway. It would help him at the bank but if he gets a loan he is not going to get a partner, and if he gets a partner he wont get a loan because the partner(s) will contribute capital, so its pretty irrelevant in my opinion. I just think its a waste of effort to try and specifically find a black guy to partner with, but if the partner(s) he has in mind just happens to be black it wont hurt but if they aren't it wont make a significant difference. Just my thoughts
 
Careful with partners Cashmoney...It gets *very* messy when it goes wrong. So just think carefully whether this is the right move and choose the partner carefully.

Do you have assets that you can use a collateral? I would prefer a bank loan...cause I would like to be in control 100%. Unfortunately your chances of getting a large enough loan is on the slim side (unless you have something collateral-ish).

Forget the BEE thing. You can worry about that at a (much) later stage.

As for the 50/50 split thing, might I suggest that you split control and profits differently. It is technically quite feasible and will allow you to maintain control over the company while the investing partner will achieve a good return on his investment.

Have you thought about what going to tide you over until the business becomes profitable? (Might take a while)

Best of luck.
 
HavocXphere said:
Careful with partners Cashmoney...It gets *very* messy when it goes wrong. So just think carefully whether this is the right move and choose the partner carefully.

Do you have assets that you can use a collateral? I would prefer a bank loan...cause I would like to be in control 100%. Unfortunately your chances of getting a large enough loan is on the slim side (unless you have something collateral-ish).

Forget the BEE thing. You can worry about that at a (much) later stage.

As for the 50/50 split thing, might I suggest that you split control and profits differently. It is technically quite feasible and will allow you to maintain control over the company while the investing partner will achieve a good return on his investment.

Have you thought about what going to tide you over until the business becomes profitable? (Might take a while)

Best of luck.
Click to expand...

Thanks. Some great advice there.
I have decided to make a R50 000 loan from my dad and will try to get another R50 000 from the banks.
I really don't want to add a partner because i want to be the boss:)

Partners are nice for the cash but i think it's better to do it on my own. After all It's my idea:)

I don't really care about BEE at this moment in time as it will be a small business and i don't see myself applying for tenders, but thanks for the heads up blunomre
 
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