I know there are tons of partnership questions, so I hope it's ok to add another one to the mix.
I have been bootstrapped my own software product for the last year while still having a day job. The software is for small/med manufacturing companies. I pitched it to a contract IT company (his clients would be my customers) and they are interested in forming a partnership. I think this would be a win-win, but I'm curious how it should be structured. I will have to quit my day job to finish programming it, he would probably be "CEO" since his reputation with existing clients is valuable and he has more business expertise. Isn't the percentage of time he works on it relevant to ownership? If he is CEO, does that mean he has to have majority ownership?
What he offers/risks
- Business expertise (running growing company)
- customer access/sales experience
- Risking reputation and current client revenue
- Likely could get increased revenue to the IT company due to the synergy. (Agree to buy the software, then contract IT services.)
What I offer/risk
- Quit my day job. (Only once we have our first customer lined up. Revenue would support me.)
- 10 years manufacturing background as mechanical engineer. I know and speak the language.
- Initial work building the product/company. (No current sales though.)