# The proposal



## Apostolica (Apr 10, 2009)

Hi, need some advise please. Just got an offer from a large and very connected clothing label to have them come on board as a business partner, they have asked me to give them a figure/percentage of how much of the business I am willing to hand over etc. They will handle all marketing, finance and everything else associated with the books etc. I love to create and design and loathe the business side of things with almost as much passion as I have for actually creating my designs,lol. I have always thought and wanted a business partner and feel this is the right thing to do. How much of my business do you think is fair and reasonable, it will be a very exclusive brand, very limited editions, hollywood fan fare etc. Going to be doing bed linen and many other things as well.
Thanks in advance for your help.

Cheers


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## lizziemaxine (Nov 14, 2007)

First thing I would do is talk to an accountant and an attorney about how to do this so that you get what you want/need out of this arrangement. Don't give away too much just so you don't have to do the bookkeeping.
And, good luck with the new adventure.


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## Twanabee (Sep 14, 2009)

Sounds like they want you for your design work. I would look for a contract to design for them and if you don't like the mfg. side, you can hire someone to run your shop. You can have the best of both worlds.


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## TeesForChange (Jan 17, 2007)

Whatever you end up doing, I don't recommend ever giving up more than 50%. What about if you license your designs to them and you get to keep your company as well?


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## jiarby (Feb 8, 2007)

what would bill gates do?


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## Apostolica (Apr 10, 2009)

I don't know, what would Bill Gates do? I do not know enough about the man to give an accurate answer to the question.


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## abiola (Aug 19, 2013)

Hello everybody, I am new on this forum. Just want to say hi.


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## codyjoe (May 6, 2013)

Apostolica said:


> I don't know, what would Bill Gates do? I do not know enough about the man to give an accurate answer to the question.


Of course I would say you should seek an attorney for such a negotiation but if you plan to do this on your own, hit them with a 70/30 split in your favor.


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## Printavo (Oct 7, 2007)

Partnerships like that can be very volatile early on in the business. Definitely get a solid contract, know who's responsible for what down to details. I would say go solo for a while to get established before partnering.


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## codyjoe (May 6, 2013)

Printavo said:


> Partnerships like that can be very volatile early on in the business. Definitely get a solid contract, know who's responsible for what down to details. I would say go solo for a while to get established before partnering.


Yeah you definitely can't go wrong with this approach. If you guys can hash out a reasonable contract and everyone knows their duties then go for it.


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## platnumcn (Aug 5, 2013)

I believe that if there is a partnership, there are loopholes and there are risks. If you are ready to bear with all of them, then you should not think twice before going for those.


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## blzpowr (Apr 16, 2011)

Apostolica said:


> Hi, need some advise please. Just got an offer from a large and very connected clothing label to have them come on board as a business partner, they have asked me to give them a figure/percentage of how much of the business I am willing to hand over etc. They will handle all marketing, finance and everything else associated with the books etc. I love to create and design and loathe the business side of things with almost as much passion as I have for actually creating my designs,lol. I have always thought and wanted a business partner and feel this is the right thing to do. How much of my business do you think is fair and reasonable, it will be a very exclusive brand, very limited editions, hollywood fan fare etc. Going to be doing bed linen and many other things as well.
> Thanks in advance for your help.
> 
> Cheers


If I understand your statement here, the proposal is they 'partner' and take over all but design. Your question is the split. Okay,..... hy partner with anybody? That (in the US) would leave you open to a lot of potential liabilities and potential disagreements requiring the use of a lawyer in the original set up and possibly don the road to resolve the inevitable disagreements.

If all you want is to design, why not keep it simple and license your designs and creations to them under specific terms and leave all the marketing etc. and details (problems) to them? The only question then is the terms of your licensing agreement, not giving up a percentage in return for the unknown.

That said, any partnership which affords 50/50 is a prescription for legal problems down the road. One side needs control of over 50%. Good luck!


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