My liberal arts degree did not prepare me for this.
November 2, 2010 2:37 PM Subscribe
I run a very small professional services firm. The firm has had a great first couple years and has built up a solid client base and some decent cash reserves. I have long been considering bringing on my first partner to expand the kinds of services we can offer to our clients. Now that I have found the ideal candidate, I find myself struggling with the details around how to structure the partnership. Any recommended books or other resources to help guide a very small growing firm?
posted by jlowen to Work & Money (7 answers total)
The firm can not afford another principal salary, so the new partner would essentially need to earn their own keep and recruit new clients. I also don’t want to tap in to my reserves in case I need to cover my pay during any future dry spells. I can provide office space and some of my assistant's time to help the new person get up and going.
What I don’t understand are the different ways to structure a parternship and the relative pros and cons of each. Obviously I don’t want to put in jeopardy what I have worked so hard to build, but I also don’t want to alienate my new partner by being too stingy.
Any advice? Any resources that might help me? I’ve read this book
, but it seems to be geared towards a much larger firm than my little 2 - 3 person operation.