Partnering, or sub-contracting? Or something else again. You really need to explore what it actually means. Will the clients be your's, her's, yours together?

There are many VAs who 'partner' with other VAs to expand their resources and expertise. In the early days for me I wasn't sure how to go about this process - there was no-one to ask and the industry was brand new. However I elected to set up a network of VAs to pass work on to - the clients became their's and not mine as I didn't want things to turn into an employer/employee type role which brings with it a whole lot of complications such as tax, insurances, superannuation, etc. For me that was the best option.

Today many build a team of associate VAs around them - VAs they have gotten to know and trust and who bring something extra to the 'team'.

I have VAs that essentially are my subcontractors but are called Associates because they are on my website and in my marketing material. Together we are a team. The clients are mine and my associates charge me a subcontractor rate which I mark up to account for marketing and other expenses (basecamp, hosting etc). If they sign up a client then that client is theirs. If they need my area of expertise then I charge them a subcontract rate that they mark up to cover their own costs.

A partnership is a totally whole different ball game. My husband was in partnership in an IT support business and they had a partnership agreement setting out the terms. They had an equal share of the profits/losses and they both owned the clients. When my husband sold his share to his business partner (he worked full-time in a JOB and part-time in the business = absentee husband) his business partner had to compensate him for the goodwill built in the business etc to fully own the business.

HTH in some way..

__________________
Kylie Short
Tilda Virtual Services - Making virtual personal

Originally Posted by Vicky

Carmela, If you go down this route of partnership with another established VA make sure you get a legal agreement to state that you will be partners in all things. If you are good friends, this may be hard to do as it puts an air of distrust in the relationship but it is better for the business, it starts everything off on an even keel. Personally, I think having two seperate business and subcontracting to each other is a better idea, especially since the majority of VA start up because they want flexibiliy in their lives. If you become partners and one person is doing more work than the other then things can get a bit bothersome to say the least. Best of luck in what ever you decide.

Thank you for your input, I have talked with my friend and we have decided to keep it separate and just subcontract if we need to.

Hello Carmela

The best advise I can give is, BE YOUR OWN BOSS, AND SUB-CONTRACT YOUR SERVICES OUT TO YOUR FRIEND. I don't know what state, or country u r from, but I am from New York City and I started my LLC in Nevada, It was cheaper to setup there; now in 2008 I set up my LLC to do official business in the New York State. Since my business in mainly conducted thru the internet there wasn't a need for filing for New York State status, but I wanted to do some onsite work with my New York City clents and I needed that piece of paper stating, " APPLICATION OF AUTHORITY", which allow me to do official business in New York state and I also collect taxes for both states.

When you have your own company you are in control of its destiny and direction. BE YOUR OWN BOSS THE REWARD IS ENDLESS.

Phyllis L

Carmela,
I agree with the posts above. Going into a partnership with a friend where the roles are not clearly defined could be detrimental. However, I can definitely see the advantages to having you both in on the same business because revenues would increase for the both of you AND you wouldn't have to worry about turning away work. The one issue I could see coming up is if one person is working more than the other but you are both sharing equally in the benefits. That could become frustrating. If you decided form a partnership with your friend, you would definitely want to get a partnership agreement in place AND make sure you both come in as EQUAL partners with CLEARLY defined roles. Always remember business is business and that rule goes both ways!

Best of luck either way.

I've read some sites that does partner because they like to subcontract their business if they get a client who need something that they don't have a background in. Instead of turning the business down, they would simply take the client and give it to another VA.

I would definitely develop my own name and business.

I have to agree with Vicky, having your own business and subcontracting gives you more flexibility in meeting your needs.

I'm currently in the process of setting up a new venture with a fellow VA. I think you need to have that equal trust in each other before contemplating business together.

Virtually or otherwise.

__________________
Kels

www.kellycairns.co.uk

I'm setting up my team in much the same way as Kylie. Each member has their own VA business and I subcontract various projects or work so I can focus on my niche. I will add each team member's information to my web page and marketing material. Even though clients will be aware the work could be subcontracted to a team member, all work will come through me, not the individual team members. If one of my existing clients decides to eventually work directly with one of my team members, I will still receive a referral fee for a predetermined amount of time. We're still working out the terms for this. I call this team a referral network, not a partnership.

I think the hardest part is deciding on team members who work and think the same as you.

Jenny