Equity Distribution for Fashion Line Startup?

[stylestacey]

Hi Everyone,

My Friend (a graphic designer/production manager) is a 33% partner in a manufacturing company with 2 investors (spilt 33% among the 3). Right now they are manufacturing for outside clothing companies.

I am a Fashion Designer, they asked me to create a new graphic t-shirt line with them.

Fashion Designer and Graphic Designer are contributing the ideas, the industry expertise, the ongoing work to build the business, and contacts.

2 Investors are contributing the capital, They own a fabric mill, dye-house and a sewing house. So this is a designers dream come true, everything you need at cost!

Right now the amount they are investing is undetermined as they are willing to pay whatever it takes, while the graphic designer and I are very experienced at getting things done frugally, have very strong work ethic, and are very committed.

I think we could do 15k-20k in sales in the 1st season easy.

They want me to make the 1st offer. I am going to put my heart and soul into this, and will do whatever it takes to make it work. This is such a great opportunity i do not want to blow it. I have no idea what is fair.

My dad advised I ask for salary + a percentage of the sales + ownership that rise on a scale as the sales rise, but I have no idea what this look likes, or if this is sound advise.

Would love your feedback!

PLEASE HELP

[joypd66]

That seems like a wonderful opportunity!! I'm excited for you! It seems that you have a lot of connections in fashion design and manufacturing. I have no experience here, but do you know anybody that you could ask? Have you spoken to your friend about it? I'd even consider getting lawyer that could give you advice and help you draft up a solid contract. This will protect you in the event that you run into trouble with the partners in the future.

Patrick

[stylestacey]

Thank you for your reply patrick, I honestly don't know a lot of people with startup experience. My network is generally of people who work for someone not someone who has started their own line. So I could use the opinions of people from this forum. Thank you for the suggestion!
Happy Holidays
Stacey