Hypothetical business question
 

Ok, I guess it's not really hypothetical since the offer was actually made to me.
I manufacture guitar parts. I have no issues with teaching other people the basics of what I do, and nudging them in the right direction to manufactuer the same kind quality parts. But, I don't give away trade secrets or specific techniques... I breed competition, and have very strong relationships with those who have sprung from me.

Another company, a large one, that make the same kind of stuff I do has offered me a consulting/advisory position to improve thier own product. The company is one of the largest parts companies in existence, making hardware parts for many guitar companies. They make a lot of stuff.

Take the position from afar and continue to do my own work? Or tell them to fend for themselves?
The position could entail...travelling...lots of $$...a steady supply of parts or tooling for my own product. They already supply me with two components that I use in my regular production, so I'm friendly with them in that respect.

What would you do?

So, you would be working as an independent contractor. Under contract? What term? Or salary? Who pays expenses etc?

Would your own business be maintainable from a time standpoint?
Is your own product/service unique (enough) to differentiate it from your improved employer’s product/service?
If you say no, is your own product/service unique (enough) to maintain you/fulfill you long-term?

If you are married/have kids, travel takes a toll - sometimes a big one – not a small consideration.

A big decision, with great potential. And risks.

Ian

Re: Hypothetical business question
 

Never burn a bridge!

It's also very flattering to be asked to work for someone.

What do you want to do?

If you do decide to go with them don't sign any non-compete contracts/clauses nor any patent rights exclusions.

Difficult for us to suggest what you should do. Company benefits, health plans, 401K, etc etc.. Sometimes there are more tangibles than straight salary.

Here's a plan;
Sign on as a consultant @ $xxx per billable hour to evaluate their products and propose modifications / improvements that will increase thier: sales, market share, and/or profits.
You will enable them to make these product(s) with your design changes under license @ X% of gross sales of those products.
You retain all rights to your own products, but agree that you will not market a product that is identical to theirs.

It's clear that you have been able to carve out a pretty congenial relationship with your colleagues and competetors. Also, the quality of your work is respected. You would probably be very successful in a consulting relationship with a larger company. Give it a shot. Sounds like a new adventure.

Hope this is not not inappropriate or too OT but as a armature musician, guitar geek/collector I'm curious as he11 about the stuff you make. Any chance of more info about what you do or pic's of the parts?

About the job, nine years ago I decided to take a job with the state. I work at a museum so I get to see and work on a bunch of neat stuff BUT I could make more money working in the private sector AND I have to put up with an AMAZING amount of bureaucracy and general bull$hit. I have traveled a bunch on state business and seen many places and met alot of people that I may not have otherwise... and the benies are pretty good... overall I'm glad I took the job.

Life is about the journey.

I'm not sure exactly in what respect I'd be doing work for them. Probably examining and testing thier products, telling them why it sucks, and how to improve it. They'll flip thier lid when the first thing I tell them is "forget everything you think you know"
My own business would continue just as it is. I woulnd't give it up under any circumstances. Since specialize in vintage style "boutiqe" (I hate that word) stuff, my product is unique enough, with a solid reputation.
No kids, but married.


Apparently so! There's only one competitor that I have a poor relationship with, and that's because he holds certain unfair trademarks that I and everyone else disagree with. Friendships with the others, especially the small guys, are pretty tight because I helped form an association of sorts to help cut costs by bulk ordering parts and sharing information.


I make guitar pickups. Do a search for Wolfetone Pickups. Been at this only about seven years and have come a long way, and it's been a wild ride ever since I started. Three years ago I got hooked up with Fernandes Guitars in Japan and started doing OEM work for them, and they became my Japanese distributor. They've built the name up in Japan and have helped me find solid footing over there in the high-end market.

Wolf,

Went to you website and sent you an email with some questions about your product and one of my guitars.

Scott

Replied. I don't do a lot of bass stuff and not too familliar with the Steinberger stuff, but I'll see what I can do to get you set up with something or someone who can. SmileWavy

Something I always think about when getting involved with a company is what would happen if they got bought out so I wasn't dealing with the current owners? What could the new owners do to take advantage of me i.e. is he going to honor a handshake deal?

Say you help company X redesign their widgets and it incorporates some design aspect or process "secret" that is similar to what you make/do now.

Now suppose company X got bought by company Y and the new Chinese owners patent lawyers review their technology and decide to patent their widgets design or the process you shared with them. Where does that leave you?

Just something to keep in mind when you structure the contract...
-Chris

Our products are 99.9% the same and the patents expired years ago. The only real difference is technique and attention to detail. In fact, they could put me ahead by sharing components for products I'm unable to make.