Contract for Startup - "enabler" Contract for Startup - "enabler"
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  1. #1

    Nervous Newbie


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    Default Contract for Startup - "enabler"

    Hi

    Just after thoughts around contract negotiations.

    I'm in a unique situation where new startup i.e. 1 man and his dog requires an IT professional services consultant in order to "enable" the new startup to become registered as a partner.

    There are very few IT people on the market that have the vendor qualifications.

    The new startup is offering only several days a week work until the consultancy has proved that they can deliver. Once the initial proof of concept has been delivered in several months time there is a potential promise of substantial contract work.

    Interested in ideas around negotiating around a contract. At the moment the new startup is not offering much and actually offering much less than a normal contract. Would you bother?
    The IT professional services qualifications cost 20k plus to obtain.

  2. #2

    Some things in Moderation

    cojak's Avatar
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    Do you have any other offers on the table?

    No advice regarding negotiation, but I would advise getting the contract looked at before you sign, in case there are any 'gotchas'/lock-ins. And make it a definite duration so that you can renegotiate if it does work out.
    "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
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  3. #3

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    Quote Originally Posted by cojak View Post
    Do you have any other offers on the table?

    No advice regarding negotiation, but I would advise getting the contract looked at before you sign, in case there are any 'gotchas'/lock-ins. And make it a definite duration so that you can renegotiate if it does work out.
    Thanks. Yes I've had the contract reviewed. At the moment the contract states that I can be terminated immediately with no schedule of works so I was looking at either getting this changed or rejecting.

  4. #4

    bored now

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    What are the restrictions on your qualifications? With Microsoft all certifications can be used by a single partner only when attached to the partner's account - so by helping them out you are potentially losing a lot.

    Now there are multiple things to look at here:-

    1) how can you be independent when the entire business requires you and your certificate - that would be an interesting IR35 case.
    2) what happens when they decide they don't need you.
    3) what happens if a better offer comes along elsewhere.

    Personally I wouldn't be taking it mind you I also wouldn't be offering such a bad deal - if they really need you it needs to be a partnership (remember without you they can't exist) and that clearly isn't what they want to offer so everything has already started badly.

    A local firm tried to organise a similar deal with me earlier this year - my instant reaction is what do you bring to the party that I don't have - and I'm now adopting the more sensible approach of filling in those gaps myself.
    merely at clientco for the entertainment

  5. #5

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    Quote Originally Posted by eek View Post
    What are the restrictions on your qualifications? With Microsoft all certifications can be used by a single partner only when attached to the partner's account - so by helping them out you are potentially losing a lot.

    Now there are multiple things to look at here:-

    1) how can you be independent when the entire business requires you and your certificate - that would be an interesting IR35 case.
    2) what happens when they decide they don't need you.
    3) what happens if a better offer comes along elsewhere.

    Personally I wouldn't be taking it mind you I also wouldn't be offering such a bad deal - if they really need you it needs to be a partnership (remember without you they can't exist) and that clearly isn't what they want to offer so everything has already started badly.

    A local firm tried to organise a similar deal with me earlier this year - my instant reaction is what do you bring to the party that I don't have - and I'm now adopting the more sensible approach of filling in those gaps myself.
    Many thanks I've think you've consolidated my thoughts in a succinct way.

    The qualifications can be switched however, consultancies have 6 months to find replacement person to maintain partner status with the vendor.

    At present they are not bringing anything to the table other than a potential promise of some future work. I did wonder about IR35 that this could cause issues.
    If they don't need me they would have to find a replacement with same certs. At the moment if a better offer comes along for me I can assign my certifications to the new partner.

    I think they want my certifications rather than me so clearly not a partnership. I'm moving towards ditching it.

  6. #6

    More time posting than coding

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    if the other party has not had experience with dealing with external resources. fairly accustomed with challenges of delivering a sw related product. I would say a big NO.

  7. #7

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    If they have no business without you then where are your shares?

    If the business is worth a punt you could even offer to pay for them.
    The rest of it is just jam tomorrow (Google it).
    See You Next Tuesday

  8. #8

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    Quote Originally Posted by Lance View Post
    If they have no business without you then where are your shares?

    If the business is worth a punt you could even offer to pay for them.
    The rest of it is just jam tomorrow (Google it).

    Thanks I came to the same conclusion just jam tomorrow

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