Would you ?

[Dolby]

Hypothetical, mostly

I work at an IT distributor with access to corporate IT products.

If I approached 4 guys and created an IT reseller between the 5 of us, with an equal share (20%) between each - and my contribution would be training/certifications and equipment at a lower cost than without me - think they'd go for it?

What if no one in the business received a salary and it was purely the 20% of the company and profits - do you think it's viable? Would you do it if approached?

 

[froot]

Well, that's what a business plan is for.
Have you done a feasibility study?

 

[Dolby]

... And that's what the others would be there for

I'd be a pure silent and contribute capital via the discounts. Without me, You may get 20% ... With me, you get 25%. Without me, training will cost you R10,000 ... With me, it'll be R8,000.

Or maybe I find an established partner already?

Just toying with ideas

 

[biometrics]

What if no one in the business received a salary

How do they survive without a salary?

 

[Dolby]

How do they survive without a salary?

Well - it wouldn't my business .... It'd all of ours. I'm not really sure ... Maybe they work half day? Maybe they currently own something making a passive income? Perhaps they've just graduated and don't have debt etc and rely on their parents?

Or as I said, an established reseller making money looking at taking on a new product and looking to diversify?

 

[dakeyras]

Could certainly be done, and certainly sounds viable. Your best bet would be to get a few freelance consultants together and pitch the idea to them. To make it professional I recommend that you do a proper business plan though.

You do not have to only take your profits at the end of the year. You guys could come up with a profit sharing agreement whereby you set aside a certain amount for operating capital, your normal savings for future expenditures and then the rest go out as 'profit sharing' or 'performance bonuses'. I wont comment on the tax implications of this, that you would need to discuss with a tax consultant or accountant. (example: 25% retained for operating capital, 25% retained for future expenditures, with the other 50% shared between the partners as income).

I do foresee a few difficulties especially regarding what each person brings to the business, and what each person does. Having 5 partners is a potential recipe for disaster...

My advice would be to start with just 2, maybe 3 guys initially. You in charge of the products/training, another in charge of the sales and installation, and the last guy responsible for the marketing/finances. You read right, I am suggesting a non-IT guy for an IT startup!

Edit:
Just to be clear on the idea...

Do you mean you provide the product and the other guys provide the financing? AKA investors?
OR
5 Equal partners each specializing in different things? AKA Network guy, Repairs Guy etc.?

 

[Dolby]

Thanks for the reply!

Maybe if I tell you how my thinking it'd help a little too

Every day I see resellers bringing corporate deals and making R10,000+ margin on each. On larger deals, R50,000+ margins isn't unheard of either .... and I thought 'how do I get some of that?'

The answer to to be a reseller myself - but I lack the IT side, the skills involved and the time. However I do have the advantage of being in the distributor with direct access to vendors and authorising better margins ... and should I meet 2 or 3 people with skills in IT/time available and (important) contacts within the IT industry (friend CTOs etc), something could be possibly be made.

Even if there is no salary - would the allure of 'every solution would be R10,000.00 in your company' not be enough for someone? I know if I was starting out and just graduated, I'd give it a go to own my own company.