I've been looking through Reddit about various answers to my current business situation, but oftentimes partnerships involve product sales and/or hourly work, which isn't the case of my industry.I'm currently working freelance as a sound engineer; meaning I work on gigs and audio projects. My business grown a lot over the past 6 months; so I'm really happy with the look of my finances.I'm interested by joining forces with a friend of mine; who has the same skillset, his own client base, and a complementary range of equipment. Before I continue I'd like to point out that working in sound is limited by the equipment you own; meaning you can grow faster if you have more equipment, and doing so, you can also invest more in acquiring more equipment. A main reason why we are looking at partnership is the potential of joint capital to allow bigger expenses that in turn will secure new and bigger contracts.Another reason for thinking of the partnership is to provide reliability to our existing client base: in the gig industry, it can be very stressful to look for freelancers whose calendars are all over the place. By being two, we can split our spillover work with someone we can trust and show our clients that if someone isn't available, it's pretty much guaranteed that they will get the second person. They don't need to go shopping for other freelancers anymore, takes a weight off their shoulders and potentially more money in our pockets.For the past few weeks we have been trialling the partnership by sharing clients and merging our trading names. Financials are kept separate as we're still trying to work out how to go about it, and this is where I'd want to get some external inputs.Initially what seemed to be the easiest way to go about this is saying that the money generated by the partnership passes-through to the person who worked the gig; which is fair but makes capital building impossible because no money is ever left in the company, and it's problematic with expenses because these are different every month - it's not like when you have an idea of how much stock you need. Upon researching I can see most partnerships are dividend based but we didn't need to invest any capital initially so it doesn't really make sense to me how we could use this technique.Another idea would be to isolate a percentage of all revenue to stay in the company, which then can be used for capital building. This makes paying tax separately complicated though.So I guess my question is; how would you go about the specifics goals for our partnership money-wise? see hubwealthy.com/wealthy
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