Questions about Business/Partnership

[WhiteKnight]

Hey everyone

 

I'm planning on setting up a business in Australia, hopefully Melbourne. Sounds promising yes, and I like the feel for it. At the moment its in the planning stage, so a lot of input and advice is surely helpful for me to consider.

 

However I need some basic understanding, advice and input on what I should be looking in forming a good partnership and business relationship between people.

 

First of all the company is going to be a future University but the company itself, will undergo a team partnership.

 

I have this friend of mine, I'll just call him 'Crazy' (by his nickname lol) who I do trust alot, he's neutral, his opinions are unbiased but if he as any issues with any plans he contributes well and explains his reasons thoroughly. I respect him and he is quite neutral I have to admit. I do get along with quite well.

 

I have some friends of mine, as well as my friend had his own and we combine our thoughts on the matter.

 

Some of the friends we have all do have potential skills, knowledge and the appropriate experience for the job in the near future. However I ran into a few issues myself finding out the 'personal' side of things.

 

Not many, but some of the people I had checked on just to be weary of was that some of them were former partners (ex-bfs/ex-gfs) in the past. Some work well together and some do not. Should I looking at this more closely do you think?

 

I am puzzled about how to make things improve and work out for the best, between myself as the 'leader' and future representative of the company.

 

I plan to start the company small with say 4 - 6 staff members just to conduct a few small classes and see how it goes on from there. Do you think that's a good approach?

 

Also I need to know what else should be looking at in a Business Relationship with my workmates ie. Work Ethics, Morale, leadership, Vision etc.

 

Any input is much appreciated.

[norajane]

First, get yourself a sharp lawyer who can help you set up a partnership so that your personal assets are protected in the event your business goes under - you don't want to lose your house and the shirt off your back too. In the US, those are called LLP's - Limited Liability Partnerships. You also need the lawyer to help with the legal aspects of starting a business/school in Australia - I'm sure there are many regulations that you need to be aware of in terms of taxes, paperwork, ordinances, real estate use, etc. Starting a business requires knowledge of that country's laws so you don't inadvertently incur fines or break the law. That should be your first priority.

 

Second, you don't hire people because they are your friends. You hire them because they are competent, creative, reliable, professional, talented, and have excellent references from previous employers.

 

You also need to make sure to do a criminal and financial background check on each of these people. Shady finances can cause people to behave in unethical ways. Criminal backgrounds, well, those speak for themselves.

 

Yes, ethics are important. Hiring people who are exes to work in a small business may be a disaster if they don't get along well. You should definitely look into that further before hiring anyone.

 

You should also be formally interviewing each of these people so you can get a feel for their work and business ethics, and personality. Ask questions designed to learn about their leadership potential, their vision for the school, their enthusiasm for the roles, their drive, their career goals, capabilities, etc.

 

You really shouldn't be doing this without some sound advice from a professional.

[Trialbyfire]

To add to the duties of your good lawyer, make sure he drafts up a partnership agreement or employment agreement, depending on how you choose to structure your company. If it's an employment agreement, instead of paying high wages, use incentive or milestone bonuses to ensure that they perform to standards or if they exceed standards are compensated in a manner that you can afford to pay with enough carrot to encourage more out of them. It also helps cash flow to know how much you will need to shell out on a set schedule. To add to the employment agreement, startup companies cannot afford to carry dead-weight. Keeping your Labour Standards Act (or whatever your equivalent is) in mind, ensure that it provides you with a quick and painless method to discharge dead-weight.

[WhiteKnight]

You make some good and valid points there norajane and Trialbyfire.

 

I had taken into great consideration on what you have said here. There are many good reasons about these friends of mine.

 

Well first of all, I did formerly interview them (like having lunch or dinner) with them to get a fair idea on how they can interact with me and get along with others.

 

Also its a good advice to check on their work performance and background from their previous employees, hadn't really thought of it at first but it seems like something necessary so I will do it for sure.

 

Yea ethics is very important in the business.

 

I will consider getting a qualified lawyer in the area that you spoke of, also the Australian Taxation Officer (ATO) would have some people to help me out with some professional advice as well.

 

Good input you guys, thanks for that. If you have any more, the more the better.