Complicated Questions

[diskjokk]

I have a somewhat complicated question for those of us who work with a partner in our DJ business. I am hoping that someone here can help me...

I just took on a partner. Another DJ I have known for about 6 years. Our new partnership is working out pretty good except for the fact that we are both having a difficult time with the following:

1) How to divide booked events amongst us? What is the most fair way to divide events other than trying to place the best DJ for the job?

2) What's the most efficient and fair way to work with the money that comes into the business? Including funds that should go back into the business for whatever it needs.

3) Should we both meet with our new prospective clients at the same time or is it ok just for one of us to meet with a new prospective client?

These questions are related to a few of the more difficult things my new Parnter and I are trying to figure out. To make a long story short, we are now booking (as partners) events for 2004 and we are booking fast!!! Things around us are moving much faster than we are. We are trying to find the answers to the questions I mentioned above.

Any help, and I mean any help, will be appreciated.

Thanks.

[Eclipse]

Mario,
First, I am sorry I have not gotten back to you. Things have been a little ruff here. I think I can answer some of the questions for you.
1)Until recently I have had a partner. The easiest way to be fair is to book job as a team. Most brides I have talked to are looking for two instead of one. If you have two jobs for the same day then it makes it easier but if you don't then do it as a team.

2) I used to take a percentage to pay me and my partner and then the rest goes back into the business. We used to pay ourselfs 1/2 or 3/4 of the total amount of the job, split that between the two of us and the rest went towards bills.

3) You both want to meet with the clients. Let them get to know both of you. The main thing with booking clients is they want to meet who the DJ will be. If you are both there it saves a step.

I hope this helps you. If you have anymore questions PM me..

[DJMC]

My advice: Don't do a partnership.

One of you is going to wind up very disappointed in the end. word to the wise....

[djlurch]

Unless you have a written agreement listing the exact details of how things will work (especially monetarily) you are setting yourself up for future problems. I agree whole-heartedly with DJMC on this one.

[diskjokk]

Hmmmm.... thanks guys. Sometimes, the truth hurts and I think you guys are being very truthful with me.

Really, part of me really wants this partnership to work though. This person brings a lot of "intangibles" to the table that I don't have. I know what I am good at and i'm not good at some of the things this guy can do.

After hearing your responses, I know I must go to him and let him know of my concerns and just put it out there... of how I think this can get complicated if we don't make a written agreement on how things should work (especially monetarily). If we can't come to agreements now on things, then we will probably know now... that we can't be partners. Which would suck for me because I think this guy and I can build a really good DJ business together.

Jim, thanks for your thoughts and i'm sorry we didn't get a chance to hook up. Hopefully we can in the near future.

Thanks guys. Any other thoughts?

[DJMC]

another type of Partnership is called a "Joint Venture" between two Sole Proprietors.

A "joint venture" is easier to structure (in CA anyway)

[Jim Casey]

Joint Venture? Explain more Matt...

The musicmaniac and I have had this kind of a partnership...i.e. referring each other for a couple of years now.

I would like to hear more about this

[DJMC]

Every state is different. California has a specific form of Partnership called a joint venture. They usually have a limited term (like one year or two years)

[diskjokk]

Guys,

I will look up "joint venture" and find out what it is. I will report my findings...

[MusicMixers]

I had a partner for years and it was simple; we split down the middle on everything, pay and bills.; I really miss that since my move. We did about 90% of the gigs as a team and that made us unique in our area. You do have to be compatible with each other for it to work though.

I will likely never have another partner but I do hire an assistant whenever I can. If the right person happened along I would consider a partner again but those types are very rare. If you have found the rare person and want it to work then have a serious chat to work out your concerns. You might just find out that person had similar ones. GOOD LUCK.....