Hi mates, What do you think about this partnership?

[alvaranz]

Hi Mates, I hope all is going ok, I know... today is monday :-)

Here is my question today:

The situation:
I want to run a new and innovate business and I need to include a software.

I thought that this software was goona be so dificult to create it, but suddently 3 weeks ago I saw a company that has created this software even more complex that I need but they are using it for another purposes, and their money comes from the purchase of this software and the updated of it every 6 month.

It's an apparell design software.

My question is:
The business plan from the new company I would like to create is so promising...do you think that it would be a good partnership to offer them a 5% from the company stocks participation for a free work and software adaptation? I think Indeed it would implicate them to work in a positive actitude as well, and which could be the bad points and problems?


Thanks to all

[BusinessAdviser]

I don't know that it would be a bad idea, but you'd have to sell them on the fact that they will be better off by accepting the equity in return for their product (i.e. whether you even have a viable business plan).

[rogercbryan]

Equity distribution for services is common in business. I think what jmenq2 said is very accurate. If you can come to a mutual agreement where you are both satisfied then it is always a good idea.

[alvaranz]

Thanks both Roger and Jonathan for the reply, I see that you both are agree with the win-win strategy. A negotiation to win both parts... and sell the proyect should be the main points.

I really appreciate your advices.

Julio