Hello there,
I have been presented with a business opportunity which in my opinion I think is a good one based on market research and the team involved. I am new to the market of consultancy (this would be my 1st job post a perm role in a large org) and I was brought in to help set up the new venture in terms of marketing, business development and organisational planning.
Normally I understand consultants charge a daily rate or can agree a retainer if they are comfortable with the level of work involved and have a good contractual understanding of the terms.
However, in my case, in order to keep start up costs low, there has been informal mentioning of 'sweat equity' but I do not know much about this in terms of pitfalls, pros vs cons. I am intrigued by this and I think this overall could be a job/venture into the future not just for now. I have also been advised that I would be paid a monthly 'retainer/salary' (I'm not sure at this time if that come out of the equity ultimately) and I'm also not sure how my expenses will be handled. I see this as an opportunity (I'm new to consultancy but hopefully not too green
but I'm interested to see if anyone has any experience dealing with these types of arrangements.
My first thoughts were:
1. Talk to a solicitor to understand what I need to look for (need to get one)
2. Work out ultimately where I stand with an accountant too when we get down to it
Thanks all.
I have been presented with a business opportunity which in my opinion I think is a good one based on market research and the team involved. I am new to the market of consultancy (this would be my 1st job post a perm role in a large org) and I was brought in to help set up the new venture in terms of marketing, business development and organisational planning.
Normally I understand consultants charge a daily rate or can agree a retainer if they are comfortable with the level of work involved and have a good contractual understanding of the terms.
However, in my case, in order to keep start up costs low, there has been informal mentioning of 'sweat equity' but I do not know much about this in terms of pitfalls, pros vs cons. I am intrigued by this and I think this overall could be a job/venture into the future not just for now. I have also been advised that I would be paid a monthly 'retainer/salary' (I'm not sure at this time if that come out of the equity ultimately) and I'm also not sure how my expenses will be handled. I see this as an opportunity (I'm new to consultancy but hopefully not too green
but I'm interested to see if anyone has any experience dealing with these types of arrangements. My first thoughts were:
1. Talk to a solicitor to understand what I need to look for (need to get one)
2. Work out ultimately where I stand with an accountant too when we get down to it
Thanks all.