Hey All,A little background knowledge on the situation at hand.I work in Korea as an ‘artisan’ at a Italian fashion brand in the flagship store where we have a LAB to customize shoes. There is a team of three of us; one of which is very skilled with painting and comes up with creative designs.I have been following this sub for a couple weeks now while watching videos about creating an e-commerce store and after doing much research, I know that a lot of planning goes into it + having niche designs.QuestionShopify + Printify Is this the best method when first starting out to create a brand at low cost? I cant afford to find a supplier/manufacturer/distributor for the SCM so I plan to use a print on demand method to make things easier.Marketing I plan to set aside $2-3k for the marketing budget for instagram ads and facebook; but also focus on TikTok and Triller.Design I plan to offer 3 options to the designer that I work with since I have a close relationship with her and we work with each other about 3 times a week. Plus when we work together, we have a lot of downtime on our hands so the design process can be very direct and align with the brand.Intellectual Property & Rights This is the tricky part that I don’t really understand, and I would like some advice with. Depending on which option my friend chooses, the designs that she makes and intellectual property will belong to the company, in the event that she leaves; I need to be protected and make sure that these designs and rights are the companies, which can be modified and altered by other designers.Here is the three options that I am offering my friend:Option 165/35 Equity SplitPartnershipDesigner - Design Up-Front Obligation: Brand/Logo Design (1) 100 Individual DesignsCEO - Operations Obligation: - TikTok, Triller, Instagram - Media Upload - Setup/Manage Shopify + POD stor - Business Dev.Description: All revenue made from business will go to the purchase of the ipad ($1,600) + Ad budget ($2,000) and once these business expenses are paid for, profits will be split according to the equity.All revenue made from business will be split accordingly based on equity. However, because of advertising and marketing expenses, each equity holder is responsible for at least 5% of their earnings to be distributed to these expenses.What if at the end of 100 designs, revenue has not covered total business expenses? If after a one year, the total business expenses have not been covered, CEO will personally take account for these expenses.What are the obligations for Designer after 100 designs are fulfilled? A minimum of 20 designs per month to retain equity statusVesting Period Details In the event that Designer chooses to 'quit' and leave at the end of her obligations within 1 year she will forfeit all equity.1 year - If Designer decides to quit after one year she will retain 25% of her equity2 year - If Designer decides to quit after two year she will retain 50% of her equity3 year - If Designer decides to quit after three year she will retain 75% of her equity4 year - If Designer decides to quit after four year she will retain 100% of her equityProfit Breakdown - Designer (.30) - Stephen (.60) - Business (.10)Intellectual Property and Rights belongs to the companyOption 2Business Venture70/30 Equity SplitDesigner - Design Obligation: Brand/Logo Design (1) 100 Individual DesignsCEO - Operations Obligation: - TikTok, Triller, Instagram - Media Upload - Setup/Manage Shopify + POD storeDescription: Initial expenses such as IPad ($1,600) and ($2,000) advertising will be taken by CEO personal finances.All revenue made from business will be split accordingly based on equity. However, because of advertising and marketing expenses, each equity holder is responsible for at least 5% of their earnings to be distributed to these expenses.What if at the end of 100 designs, revenue has not covered total business expenses? If after a one year, the total business expenses have not been covered, CEO will personally take account for these expenses.What are the obligations for Designer after 100 designs are fulfilled? A minimum of 20 designs per month to retain equity statusVesting Period Details In the event that Designer chooses to 'quit' and leave at the end of her obligations within 1 year she will forfeit all equity.1 year - If Designer decides to quit after one year she will retain 25% of her equity2 year - If Designer decides to quit after two year she will retain 50% of her equity3 year - If Designer decides to quit after three year she will retain 75% of her equity4 year - If Designer decides to quit after four year she will retain 100% of her equityProfit/Revenue Breakdown - Designer (.25) - CEO (.65) - Business (.10)Intellectual Property and Rights belongs to the companyOption 3Freelance Artist ContractDesigner - Design Obligation: Brand/Logo Design (1) 100 Individual DesignsDescription: Once the design obligation is fulfilled, Designer can choose to stay with the company; based on performance, it is not certain how much equity or financial incentives can be offered.Intellectual Property and Rights belongs to the company see hubwealthy.com/wealthy
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