Is this a good offer to help take my business forward?
I run an online services company. It’s not porn or anything dodgy but it’s quite niche so I won’t go into more details about what we do for fear of doxxing myself.
For now things are ticking over, I make around £60k a year net profit but I basically have a well paid job, the business is me and anyone taking over the business would need to do all the stuff I do.
I’ve been approached by an IT guy who I know well and trust and we’ve had discussions and he thinks he can modernise everything, massively improve the website, my social media, my promotional stuff and all services we provide.
He’s asking for a 20% cut of all profits, plus a further 10% on any additional profit from where we are now.
So basically he’d get £12k a year plus 30% of all company profits above £60k.
I think this modernisation will allow me to raise prices by 15% as everything will look and work better but it’s a lot of money to give away.
Does this sound like a good deal to those of you with IT guys who work on commission?
I have someone else doing IT for me at the moment and would look to keep him on in random with this new guy. They’ve worked together on some stuff already with new guy free lancing it and seem to work well so current guy would be happy working with him.
Thanks all.