Advice Needed About Contracted Labor

Business By cupcakeatheart Updated 17 Jan 2012 , 3:48pm by cupcakeatheart

cupcakeatheart Posted 16 Jan 2012 , 4:30pm
post #1 of 4

I have been in business for about 2 years now making cake balls and cake pops working out of my home. Business has been pretty good, but not enough so that I can quit my other job which I'm desperately seeking to do. A friend in town makes wedding cake and her business has grown exponetially in the last 2 yrs. She refers her cake pop orders to me and I refer wedding cake to her. She has approached me and asked if I would like to come on board and make cake pops with her cake/flavors and supplies and pay me for labor, technique/skill. I'd still run my business like normal. I don't have access or funds to rent a commercial kitchen right now, but am looking for a solution.

Concerns:
1) I'll lose some of my business to her doing exactly what I do, but make less money and not get credit for being the artist.
2) During busy seasons, her orders will take priority over my company orders

Any thoughts about how I can arrange a contract with her so that I could still maintain the integrity of my business and expand? This is totally uncrated territory for me and any of my mentors, so I'm hoping someone out there has experience with this or they know what they would do if this situation ever arose.

Thanks

3 replies
jason_kraft Posted 16 Jan 2012 , 6:12pm
post #2 of 4

If you want to maintain your own business you are probably better off selling her your cake pops (branded with your business name of course) and letting her resell them to customers, that way she's just another customer and you don't have to worry about a special contract or conflicts of interest.

Unlimited Posted 16 Jan 2012 , 6:30pm
post #3 of 4
Quote:
Originally Posted by cupcakeatheart

She has approached me and asked if I would like to come on board and make cake pops with her cake/flavors and supplies and pay me for labor, technique/skill.

2) During busy seasons, her orders will take priority over my company orders




These are two things (on a typical list of 20 factors) that help determine that you'd be an employee, not subcontracted labor.

cupcakeatheart Posted 17 Jan 2012 , 3:48pm
post #4 of 4

Thank you! I think I will try to figure out a resale situation.

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