Becoming a partner of my firm

[NOOXY]

Hello guys, nice to be back but norenderings this time just some feed back I need from you all. So here's the scenario.

 

I've been emplyed with a small architectural and interior design firm for almost 2 years, which is becoming pretty hot on the market right now. We are are currently a group of six members with 3 seniors and 1 junior partner. They've recently offered me partnership in the firm seeing that i have alot of private work and a large clietelle and that I'm been very productive as a graphic illustrator and drafting technician.

 

My crossroad is that as a partnerr i have to sign over all private work( which is twice my base salary alone in the firm) to the company but in return i get a substantial raise in salary and 10% of company profits from their projects.

 

On the other hand i can retain my position as non partner, still get a salary increase and 10% profit of any job i bring into the firm.

 

I thought that bringing in private work would mean no more late night hours and that i'l just have to concentrate on my normal 8-4 working hours. what do you guys think of my situation. I have to prepare a proposal so that we can implement my decision for january 2007.

 

 

Should i stay solo or become involved as a director of the firm?

 

hope i wasn't to long winded:D

 

PS. I'M only 25 with ofcourse strong drafting,design and graphic illustration skills.

[Devin Johnston]

If your side projects are bringing in more money than what you would get as a partner then I would say don't do it. It sounds like you would be handing over all of your projects to your firm for only a fraction of the money you would get if you kept the projects solo, good deal for them and not so good for you. Is the increase in your salary going to be compensation for all the side money you will be giving up plus the increase in responsibility that is going to come with a partnership? I would do a projection and see what you think you will be making in 5 or 10 years if you kept up the solo work, then figure out what you'll be making at your firm if you give it up and become a partner, that should give you a clear idea of where to go.

[NOOXY]

thanks maxer for the input.

 

well the option is i propose a salary that i think will compensate for all the work i can bring in. meaning if i think i should gain a yearly income of 80,000. then i have to ensure i can bring in at least 130,000 worth of projects to the firm more or less.

 

but bearing in mind that i wil also be getting 10% of the companys profits from any project that a partner brings in.

 

I personally think that i am in a great position to negotiate and I just want other's feedback before i make a decision

[Brian Cassil]

It sounds like a great opportunity and at the very least puts you in a good bargaining position. In most design firms you have to buy into ownership (which is what I'm slowly doing... very slowly), so this sounds like a good deal. However, the ratio of partners to employees seems drastically out of proportion. If I understand correctly with the addition of you as a partner, there would be 5 partners and 1 employee?

[Noise]

In reality, the partnership is not going to make you much money - 10% of a projects profit will be very minimal (unless your firm is making massive profits).

 

On the other hand, working all day and then working all night is no fun and you may wish to simply concentrate on your day time work.

 

Being a partner is a good move but, many companies use it to keep good employees - which is a good thing. Just weigh up the financial advantages of both scenarios and give some thought to projected figures as mentioned by Maxer.

 

adios

 

N

[diegofer_9]

I went throught almost the same situation some time ago.

I was offered and Associate possition in the company I work for which is an architecture studio with mostly residential projects. I was doing 60% of the time the renderings for these projects, and 40% the usual CAD drafting, paper filing, call making of the tedious everyday architecture business. So I was offered a position at a firm working in just visualization.

My choice was made based not really in profit, but on enjoying what I do every day. I chose the rendering company, because I love the field of illustration and the architecture work was a little monotonous for me.

 

To me, whatever choice you make, It's all about enjoying life every day.

Just my 2 cents.

[jccloutier]

I don't have any educated advice for you but I can say my wife and I spent our honeymoon at Anse Chastenet and 80,000 in U.S. dollars would let you live like Hugh Hefner in St. Lucia.

[Crazy Homeless Guy]

imo, ....you should either accept being a partner or leave the company, and establish your own company with the workload you have.

[3dway]

Is it just me or does the option where you, take the salary increase and get 10% of the projects that you bring in, sound the best.

 

That would let you balance profit/personal time as you see fit at the time. Getting beat up by late nights, bring the jobs into the firm for a break in the next couple of months.... saving up for the large flat panel TV? take the next few jobs on the side as pure profit.

 

Not to mention, as a non partner / associate, you don't take a hit in on unprofitable projects, unless you brought them in.

[Sawyer]

imo, ....you should either accept being a partner or leave the company, and establish your own company with the workload you have.

 

Yup. Partner is probably the best they can offer you so if that is not good enough why would you stay. Working the 60-80 hours does get harder every year. And in a few years you may find that it is not worth it. I could work much longer hours before child number 2, now I get tired a lot sooner. Its not sustanable. Personally I think the less hours you work the better.

Also partner looks good, in 5 years if you leave having partner on your resume will look a lot nicer than not.

[rotten42]

I would stay with the firm anmd still operate you private company on the side....but then I am biased. Its what I am doing right now. I find it offers the most flexibility, reliable income, networking circle, training and control. I have the best of both worlds.

 

 

The question I would ask is if things don't work out in being a partner...where does that leave you?

 

Please have a lawyer look over the partnership offer that specializes in this sort of thing. You could get screed over and not even know it until it is too late.

 

I don't know what the business model is for this company but the structure is very important in determining how compensation can be paid out.

[mac3d]

just my opinion - stay solo. I went through a somewhat similiar situation that didn't turn out well. (which is always a possibility) luckily I didn't bring all of my clients at once - and the clients I did still have were able to sustain me until I got back on my feet.

 

I don't regret the situation - I actually learned alot about myself - and although it didn't turn out well - I think it has actually made me better at what I do. I'm not always doing visualization work now (it's about 50/50) but salary wise I'm better off - and I can pick and chose which visualization projects I want to take on for side work. I also think it's important to build a good network of people you work well with for those bigger projects. Doesn't have to be big group - I have 2 trusted colleagues I share work with and we always get the job done.

 

Good luck in your decision! remember The grass is not always greener - but sometimes you just have a take a chance - either way, as long as you see it for what it really is - an opportunity to learn - you gain either way.

[NOOXY]

guys thanks alot..very informative arguements and valuable information.

 

It's is a big decision to make especially at my age. It's because of my drive and determination i have developed a network of clients to gain all that private work. I really love the firm as it's very family oriented meaning as a small group everyone's very close and knows what they responsibilities are. Theres no boss to breathe down your back and you're free to manage your time as long as you get the work done to the deadline.

 

we're basically made up of a senior architect/interior designor/adminstrative manager/project manager/accounts clerk and me the architectural illustrator & drafting technician. According to their policy thy evaluate an employee for 2 years there after if they find your a big asset they pull you in as a partner. So i guess my time has come to take that step.

 

Everyone in the firm has pretty much aggreed that with my skills I have placed the firm on a higher level and we're getting pretty huge projects. We're currently on going our own 6 million dollar gated community. So i think they're good on high level projects.

 

Another drawback which i forgot to mention that since they're trying to enforce an architects act in the country which limits drating technicians to doing certain categories of work and I'm not a registered architect in the island so this will affect me big time:eek: ..but i do have my 3d skills to fall back on which i think is the best quality offered in the island:D

 

But i'll keep you guys updated and let you know how things turned out..good looking out and thanks a lot for all the feedback.

[alexg]

Danny

 

I think you should put forward a new preposition that you are made partner on base that you can keep your existing clients to yourself. New clients can be shared with your company. It might be a long hard bargaining, but it will be a win-win situation for both you and the company.

 

here are 2 questions to ponder:

 

1. Main reason of the offer

When money is involved, the proportion of sharing workload and who's getting the most projects in can soon lead to company split. Better find out if the promotion is more towards bringing your clients in (meaning more $$ for the company) or to keep you inside as unreplaceable resource.

 

If you suspect it is for the money, then I suggest you decline and just try get that raise and 10% share when you put projects in.

If the main reason is to keep you in their company, then you might score a good bargaining deal by keeping some of your old clients to yourself. The company will keep you anyway. Arguably, it's hard to start a business, and switching business names after long time relationship can lead to distrust from your existing clients.

 

2. Do you trust your future partners?

Another concern is how good your 'other partner' is doing in getting projects in? Are they good in marketing? Are they good in getting the job done? If it is not good for both parties, then one will just become parasite in near future. Not good for any business partnerships, especially in the worse of times.

 

Hope that helps.

AlxG

[NOOXY]

It defenately helps man..

 

You mentioned some points I did not mentioned..My clientelle deals with me but the firm reviews my proposals before i submit it to the clients so if I'll charge a client 2000.00 for a job then the firm reviews my proposal and try to add an extra 1500 or so where necessary so that my bill to the client now becomes 3500.00..that's the idea of how they want me to approach my personal clients.

 

I also retain clients that I have long work relations with as I don't turn them over to the firm.i still retain my personal work with them, but any new person that approaches me I have to let them know that i'm a director:D of a firm and hence the fees for the services we'll offer. It's like my mind is now reprogrammed for pulling in new clients to the firm so that i can confortably say that the salary i'm asking for is worth it.

 

I do trust my partners. They are significantly older than me by 10 -20 years, married with the assets of life( house land car etc) but we do have equal respect for each other. Are they good at landing bigger projects..defenately. what i pull in on 3-4 small projects is what they'll do with just one..i get alot of small residential projects but more commercila stuff comes through the firm and there's not a time where I can stay we're stagnant.

 

It's a bit overwhelming and I know i have to carefully weigh my projections , disadvantages and advantages..posing this question here has opened me to new stuff as i prepare my proposal..and i guess like sawyer said having the term partnersip on your resume does sweeten it up a bit:D

[thinice]

I would say take it.

 

I am 36 and has been involved in this field for 10 years. I was very ambitious (still is) and never take on any partnership offers as I think I could do things better. It has been a rough ride.

 

I never regret any of my decisions but I have come to realize the value of sharing your goals with others - especially with people who can bring different perspective and expertise to the table.

 

Try to map out a 5/10 yr plan for your career. I believe being a partner in a established firm with people you trust helps you get there easier.

 

Don't worry about making a bit less money. If that frees your time to learn new skills (business, negotiation, management etc) and enjoy life a bit, it will be more than worth it in the long run.

 

Just my 2 cents

[vizwhiz]

Nooxy

 

eventually you will be able To Take over The main operations

since you mentioned That everyone else is about 10 or + years

 

older

 

This sounds like good job security for you

let The others find The work, and you can help do The work

 

working for an established firm can be a great situation

 

say if you ever need more help, maybe you could 'outsource'

and some of us could come down for a week or Two (vacation)

 

and check out your 'new' situation

 

Best of Luck, sounds like a great place To be To me.

 

**

 

Randy

[NOOXY]

THANKS again guys..good thoughts on the thread as usual..thinice i think you strike a good point in that i'll have a lil more time to learn other trades of the field( to add to my belt)..and I'll defenately source you guys out when things get rolling big time to come down for a week or 2..lol:D

 

overall i think it a very good opertunity and i'll project a 5/10 year plan to forsee where I'll be.

 

thanks guys:cool:

[eksg]

I was typing a very long post for this one,but i erased it all when i realized that everyones already been telling you what to do.I dont want to add up on the confusion.So this is the only thing that i can tell you.....Your old enough to think of what is best for you...go for it what you think is right,with no regrets....and then treat us all for a bottle of beer....!!!cheers!!!

 

And advance congratulation on whatever path you decides to go.

[rotten42]

Nooxy...what ever you decide.....get everything in writing. Did I mention to get everything in writting?

 

Seriously, relationships can deteriate in business. It happens. You don't want any promises unfulfilled if things go sour.

 

 

Good luck!

[brianzajac]

Nooxy,

 

Weighing in all your advantages/disadvantages along with the advice in this forum is a great start to your solution. However, have you looked into any of the legal issues with becoming partner? For example, there's an 'incapacitation clause' that you should know about. In an unfortunate event (death, severly handicapped or something that would prevent you from working at the firm), you need to stipulate where your percentage of the funds will go. Would you have any recurring revenues from the clientele you bring in? Or would they do a one-time payment based on the gross/net revenue from the firm. Money does strange things to people (even a close-nit firm like yours). So, make sure you have a good lawyer examine the contract before you sign on the dotted line.