I’m just trying to protect myself. Imagine your friend with no experience starts a company which he doesn’t know a lot about. Then you come and make it operational for them. Then they decide they don’t wanna pay you and fire you because they can do the work or hire someone for cheaper?
Definitely not trying to be a douche or trying to get over on anyone, just want it to be fair and square for all parties
Negotiate like scrooge in this scene and you will be fine
remember a bird in the hand is worth 100 birds in the bush in this current flooded environment.
The problem with the Oklahoma market is the level of competition, and the temptation to go BM due to the flooded market, and if your tempted to go BM the rules and regs coming down the pipeline. I imagine prices will continue to get worse as the economy comes to a crunch for BM and licensed.
Uhh with 280e giving anyone 25% of revenue would be a horrible decision. Depending on the corporate structure, just your revenue share and taxes could put the company in the red before any other costs.
If he has 0 controlling interest of the company(I wouldn’t do it for less than 50%), the company is definitely going to loss out before paying him “PROFIT”
Any business owner leaving more than liquid capital/reserves as profit is silly anyway and doing it wrong… 25% profit on a NEW business with no ownership is a super bad idea.
Not much left after the quarterly dividend payment to the stockholders.
What is the largest scale that you’ve previously ran?
More than a few times I’ve been called in to fix the problems created when people try to scale from 20 light operations to 300.
As far as the business, you should ask to see a business plan. There may be financing or other unknowns in place that could doom this facility from the start. I’ve seen business plans that need 4 pounds a light sold at $2500 a pound to be profitable. The owners even considering 25% of gross is a huge red flag that sound business decisions aren’t being made.
The largest that I’ve helped run with someone else was a 300 light flower grow and 80 light 2 tier veg
the 5 k a month isnt bad IMO. But make sure theres not a clause where you owe it back if theres no profits. Id also make them allow me my own small section for mine.
Yeah that’s not legal at all
Oh man? legal. I guess not since they getting metric. But if Im growing legally itd be dumb to grow illegally at home. In il I could grow 5 legally. gotta move to mi which is similar to IL with better fishing or to the next legal state. Id like wisconsin to legalize and have easy grower licensing
Just saying a legal op isn’t gonna give you a small section of their plants
Possible to get the bonus paid out in weed? 
I understand. Do they do experiments? I can call my own area an experiment to compare techniques. I just dont get to take it home. WINK NOD
Yeah your def the guy they gonna hire.
hey let me back door this pound
Im kidding. But this job offer seems to have very few employees? How many wooks do you think to grow out 100 lights? Ive never done large scale but seems easy other than planting and harvesting times. I use soil and remix ammendments. also when “light” is mentioned its usually a 1k or equivalent right? I use 3 lights per tent so I got lots of lights.
Two points:
First, if the company isn’t profitable because of your compensation, you can always choose to defer a portion of it until it is (if you have faith in your abilities to make it profitable)
On the other hand, I would be wary of any offer that clearly puts the company at risk because it doesn’t bode well for their business acumen
i would take all this information to a lawyer and shell out however many thousand dollars they want to help you protect yourself.
offering a percentage sounds great to those on both sides until the shit hits the fan, tons of ways it could go bad for all parties.
no matter how much knowledge (or lack thereof) anyone in this forum has all contracts are unique, get a lawyer to help you make these large decisions.
if you sell them your IP and they fire you right away then you have not written your contract to include termination timeframe/payout language.
If you create IP for the business while receiving compensation it is no longer your IP unless it specifically states that in your contract. so you need to enter the business with all of your docs for you to prove ownership (value). your ownership and creation of these docs should be outlined and included in your contract.
how and when they pay out any funds to you will have be written into the contract.
as far as salary, as much as you can fight for? provide value you can show with data and you can get whatever they will pay.
in my own experience, groups and individuals that link compensation to “harvesting and selling” flower instead of paying you for your time throughout the life cycle of the plant are very unlikely to pay out based on expectations. they may not even make it to the next harvest and that would leave you without time and money.
it is very easy for a business to make money in one area and also not pay out profits to others.
find a pay a lawyer at least the 5K you would get month one and you will thank yourself down the line.
The company should have enough money to endure unprofitability. How many startups make money the first years. Even amazon and tesla were unprofitable. thats why id prefer a guaranteed wage. I think i got the same offer and it made my hairs stand up= 25 percent equity with zero investment??? paid to move is nice but its all strange. is this one greenhouse or indoor> so if its indoor you get up to 10k and may be in limbo next harvest? thats total bs
This 1000%, contract contract contract. No one will look out for you like you will for yourself.
Most cannabis companies at this scale don’t have reserve funds to last past one failed harvest. There are several California companies that started in excess of $10M in funding closing up shop that have been open for less than 2 years. In the next several months watch for smallish mergers and acquisitions to put lipstick on these pigs and send them to the stock market for capital.