Question
I've been asked to ADVISE an established small biz in exchange for a PERCENTAGE of monthly revenue.
THREE SPECIFIC QUESTIONS:
1. This is a small biz that is cash flow positive monthly -- should I ask for a larger % of gross or smaller % of net?
2. Anyone have contract examples they are comfortable pointing to or sharing?
3. Accountability of payouts -- I'm guessing I need to ask for ongoing access to bank account and sales reports?
Thanks kindly,
Josh
Answer
Either they have problems or looking for a fresh blood.
If you going to advise = fix a monthly fee. Advise is an opinion don't tie it up to percentage of income. Maybe your advice will not have an immediate effect. Ask 100% payment in advance/ or 50% before 50% after
If you going to be hands on = Grow their business and take a bigger chuck of growth income. Say that they are making 100K/month. Grow it to 300K and take 35% of it.. play with your ratios
