Need some advice....

I have a soon to be successful company here in south florida by the name of DZYNHAUS (Design House) Inc. Along with my three partners, we are the only workers, employers and employees… Get my point? Its hard because of our 9-5 fulltime jobs… we only can give 80% towards all of our projects and work. Its hard on the mind and as well as the body, no sleep… 2, 3 am yeah i see that. My problem is that we have done quite a few projects some big some small and some just right.
Of course we arent a major force in the world of design but im optimistic and very much ready to our work all over south florida and world wide. We havent touched our earnings, meaning we havent devised a pay system because we simply want to build up money. Its time to see some of that if you know what I mean.
We pretty much have decided to split most of the projects with a percentage going towards the company, and the four of us. Hearing my story does anyone have any suggestions as how maybe we should cut the checks; by designer of project, how much work devoted on a project, or just 4 ways down the middle. If i said too much i apologize, its been a while since ive been on here and im excited to be back. Thanks…

Interesting problem, I’d be curious to hear what people think. I’d think maybe an hourly tracking system? Figure out how much you want to bill at per hour. A portion of the hourly fee goes to the company (overhead, investment, profit) and a portion to whoever is putting in the hour.

If a few friends start a company it can work out well, as they know one and other. But can also ruin the friendship forever. Its some thing you should know.

But if you are partners in this firm, if every one has the same amount of importance, or same job, responsibility. Why not split it even. Getting the jobs in is as important as is getting the jobs done.
Counting the hours is a pain (in a small overworked shop) but needed to track what time is spend and on what customer

Keep putting cash in to the shop will make the shop grow. If you put it in getting bigger cars you are throwing it away.

What you do is you choice. But put it on paper(contract). May be do it for 1 year that way and re-talk the situation, maybe change the contract.
And after 1-2 years if it really gets big make an official contract (including things like profit splits and payments if one wants out)

B-art

I heard a story of two families that started a business.

They agreed from the beginning, that if business went bad, and they had to choose between the family or the business, they would choose to keep business running.

Otherwise, they would loose the business AND the family. Same could apply in your case. It is very difficult to keep friendship relations as they are in a previous state when you begin dealing with sweat and money.

I would try to be very clear on what are the rules from the beginning. Try to talk about every little difference that you may have and know what would be the (good and bad) consequences of the venture.

What I would do is the following: Establish a salary for everyone. Rest is company profits that could be re inverted and/or shared at the end of the year.

Keep track of time spent on EVERY task. That way you will have future reference and you will be able to work on improving efficiency for the most time consuming tasks. You’ll also have references to elaborate more accurate project quotes for your clients.

I know it is tedious to keep track of hours, but what is not measured can’t be controlled. If you don’t have control it is more difficult to improve. Try to find a web based software for that purpose. There are several that can do the job.

I would, later, share profits based on the value produced individually.

Hope it helps at least a bit.