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Brian Metzger posted a new Starting A Business thread on 3/31/2008

Balance in Partnership

I am a restauranteur who is looking to start a partnership with another gentleman. I am bringing the complete opperational side to the business, as this is my area of expertise. He has little to no experience in the business.
We need to raise $200K, how do you think I should structure the partnership? Out of 100% - and is it fair to ask him to bring all the money needed to the table, as I would be opperating the concept? How should I ask him to bring this money?
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Roy Hacker Responded on 3/31/2008


Hello,
Are there any trade magazines or forums for this kind of thing? My guess is that restaurant deals are as creative and variable as you can get. I suspect that there might be a book or two or a hundred on restaurant financing and partnerships.
Maybe check with SCORE at your local SBA? Also are there food and entertainment services programs or degrees at either ASU or UofA? If there is, there will be a whole University Department at your disposal for questions - you pay the taxes - most University professors are glad to give you a few minutes of their time.
Offhand I'd say operations is just as important as money in your business. You can start a restaurant with money. You can't continue without a good operation no matter the money.
Oh - you might want to get a lawyer for the partnership agreement just to protect both parties.
 
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Barbara Hauser Responded on 4/13/2009


Potential partnership is probably the most important decision you'll make. Ask yourself why you want this particular person as your partner. What does he bring to the table that you need today? How will his contribution play out in the future? What do you want to gain from the partnership? What other way could you obtain it? At this point, go slow - so you can go fast later and not get bogged down in conflicts you didn't anticipate.
 
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