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[Sheazle]

Hey everyone, I'm new to the forum, so bear with me.

I have searched the internet for anything about this to no avail, so I figured I would ask.

Last year my fiance and I started our business. Our focus is photography but we also do graphic design and web design etc. We have done a couple of weddings and we are starting to get more bookings, but we don't really stay busy with the business. This spring I graduated from college and got a full-time job that pays rather well, so our photography business is less of a priority at the moment.

There's the back story, here's the question:

I have a close friend who just graduated from college for graphic design and wants to start his own business, but has very little by the way of capital to purchase equipment. Is there a good way to let him use our cameras and computer equipment when he needs it for a small fee or something, which would basically end up with him owning a share of our business. That way he could use the cameras during the week and on weekends we don't have weddings or portrait sessions, and we would still have it for our stuff when we needed it. It would be kind of a rent-to-own thing I guess.

Any thoughts?

 

[Big Mike]

Welcome to the forum.

This can be a tricky situation.
What would happen if the gear breaks when he's using it? It is his responsibility because he was using it? or is it your responsibility because it own the equipment?
Who would be responsible for regular maintenance and repair? What about upgrades etc?

So do you actually want him to own a share of the business? If so, then I'd suggest putting in a very specific agreement about his & your responsibilities and how the money would flow. Talk to a business lawyer and/or an accountant.

If you don't necessarily want him to buy into the business...then just let him rent the equipment when he needs it. If you want to help him out, then just give him a good rate. This should give him the opportunity to build up a portfolio and client base until he can afford his own gear.

 

[Sheazle]

Those are some great suggestions. I'm glad I asked

I think maybe I'll start out just loaning or renting him things if he needs them for the time being. When he gets a little more established we can decide if we want to merge our ventures or just continue with the cooperative partnership situation.

Thanks for the reply, and the welcome.