- 5,485
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- Jul 24, 2007
Asking for trouble because 1 party will eventually feel like they are getting shafted in whatever deal is initially agreed upon.
How to split profits with my biz partner?
- 512
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- Nov 8, 2009
you guys need math lessons
- 512
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- Nov 8, 2009
you guys need math lessons
- 7,355
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- Jan 3, 2009
80/10 with the other 10 goin towards the company. Face it, you run that show.
- 7,355
- 15
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- Jan 3, 2009
80/10 with the other 10 goin towards the company. Face it, you run that show.
- 2,078
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- Jul 1, 2009
get great lawyers and a decent account while you at it.
- 2,078
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- Jul 1, 2009
get great lawyers and a decent account while you at it.
- 23,061
- 5,036
- Joined
- Jan 19, 2002
Originally Posted by KayCurrency
So many math fails in this thread
- 23,061
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- Jan 19, 2002
Originally Posted by KayCurrency
So many math fails in this thread
- 654
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- Mar 29, 2007
Sounds like a well run venture
- 654
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- Mar 29, 2007
Sounds like a well run venture
- 3,283
- 207
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- Jan 20, 2005
Only putting 10% back into your business is not a good idea. I would say a 35/35 split will do and the rest should go back into your business. Firstly, with the current state of the economy, you can hire someone for the low to replace him.FYI you should never do business with a friend because in business its all about making a profit.Your friend will notice that your making money and want a bigger cut and we all know money can ruin a friendship.
- 3,283
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- Joined
- Jan 20, 2005
Only putting 10% back into your business is not a good idea. I would say a 35/35 split will do and the rest should go back into your business. Firstly, with the current state of the economy, you can hire someone for the low to replace him.FYI you should never do business with a friend because in business its all about making a profit.Your friend will notice that your making money and want a bigger cut and we all know money can ruin a friendship.
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- Dec 1, 2005
You guys are all dumb. He said 40/40 and 10% PER person. (40+10) + (40+10) = 100.
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- Dec 1, 2005
You guys are all dumb. He said 40/40 and 10% PER person. (40+10) + (40+10) = 100.
- 583
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- Jul 25, 2009
depends on what your goals are right now for the company. for instance, if you want to grow your company quickly and making a profit isn't a necessity, then you'll want to consider reinvesting the majority of your profits back into the business.. and vice versa.
it will help to come up with a quantifiable measurement of "valuable work". you didn't give us much information on your business to work with, but you'll have to identify not only who's doing the MOST work, but also whose work is most vital for the company's success. there's no set formula for something like this, you two just have to come up with a plan that makes logical sense for the both of you.
in the end, if both of you feel good about the deal then the job is done. what you want to avoid is reaching a deal that leaves a bitter taste in the mouth of one or both parties.. that's when the trouble starts.
it's not the actual distribution of profits that will cause the problems in the company, it's in how the respective parties FEEL about their pay. if steps are taken to ensure the happiness of all parties, you will be much more successful in the long run.
also in the early stages of such a small company, roles tend to change very quickly and the value of people's efforts may vary greatly. what may have been an appropriate profit distribution scheme a few months ago may no longer be relevant today. a good approach would be to come up with a new pay structure for each new project. for instance, he may be doing more work on this shoot than the one before, so break him off a little more this time around.. take advantage of the ability to be flexible as a small business.
best of luck in your venture!
it will help to come up with a quantifiable measurement of "valuable work". you didn't give us much information on your business to work with, but you'll have to identify not only who's doing the MOST work, but also whose work is most vital for the company's success. there's no set formula for something like this, you two just have to come up with a plan that makes logical sense for the both of you.
in the end, if both of you feel good about the deal then the job is done. what you want to avoid is reaching a deal that leaves a bitter taste in the mouth of one or both parties.. that's when the trouble starts.
it's not the actual distribution of profits that will cause the problems in the company, it's in how the respective parties FEEL about their pay. if steps are taken to ensure the happiness of all parties, you will be much more successful in the long run.
also in the early stages of such a small company, roles tend to change very quickly and the value of people's efforts may vary greatly. what may have been an appropriate profit distribution scheme a few months ago may no longer be relevant today. a good approach would be to come up with a new pay structure for each new project. for instance, he may be doing more work on this shoot than the one before, so break him off a little more this time around.. take advantage of the ability to be flexible as a small business.
best of luck in your venture!
- 583
- 10
- Joined
- Jul 25, 2009
depends on what your goals are right now for the company. for instance, if you want to grow your company quickly and making a profit isn't a necessity, then you'll want to consider reinvesting the majority of your profits back into the business.. and vice versa.
it will help to come up with a quantifiable measurement of "valuable work". you didn't give us much information on your business to work with, but you'll have to identify not only who's doing the MOST work, but also whose work is most vital for the company's success. there's no set formula for something like this, you two just have to come up with a plan that makes logical sense for the both of you.
in the end, if both of you feel good about the deal then the job is done. what you want to avoid is reaching a deal that leaves a bitter taste in the mouth of one or both parties.. that's when the trouble starts.
it's not the actual distribution of profits that will cause the problems in the company, it's in how the respective parties FEEL about their pay. if steps are taken to ensure the happiness of all parties, you will be much more successful in the long run.
also in the early stages of such a small company, roles tend to change very quickly and the value of people's efforts may vary greatly. what may have been an appropriate profit distribution scheme a few months ago may no longer be relevant today. a good approach would be to come up with a new pay structure for each new project. for instance, he may be doing more work on this shoot than the one before, so break him off a little more this time around.. take advantage of the ability to be flexible as a small business.
best of luck in your venture!
it will help to come up with a quantifiable measurement of "valuable work". you didn't give us much information on your business to work with, but you'll have to identify not only who's doing the MOST work, but also whose work is most vital for the company's success. there's no set formula for something like this, you two just have to come up with a plan that makes logical sense for the both of you.
in the end, if both of you feel good about the deal then the job is done. what you want to avoid is reaching a deal that leaves a bitter taste in the mouth of one or both parties.. that's when the trouble starts.
it's not the actual distribution of profits that will cause the problems in the company, it's in how the respective parties FEEL about their pay. if steps are taken to ensure the happiness of all parties, you will be much more successful in the long run.
also in the early stages of such a small company, roles tend to change very quickly and the value of people's efforts may vary greatly. what may have been an appropriate profit distribution scheme a few months ago may no longer be relevant today. a good approach would be to come up with a new pay structure for each new project. for instance, he may be doing more work on this shoot than the one before, so break him off a little more this time around.. take advantage of the ability to be flexible as a small business.
best of luck in your venture!
elpablo21
Supporter
- 103,994
- 187,768
- Joined
- Feb 11, 2008
I agree with this, have open communication and adjust pay rate based upon each project
I think its a good idea to invest the same percentage as well...so even if you earn more profit...you're putting more back into the company as well
elpablo21
Supporter
- 103,994
- 187,768
- Joined
- Feb 11, 2008
I agree with this, have open communication and adjust pay rate based upon each project
I think its a good idea to invest the same percentage as well...so even if you earn more profit...you're putting more back into the company as well
- 1,525
- 243
- Joined
- Aug 14, 2005
Someone with some sense.
Sorry that I didn't break it down for all the NT math majors. Thought it would be common sense. It's a 50/50 split we both take 40 and put 10 back in EACH. Not that difficult to comprehend.
As far as the comment regarding that not being a sufficient amount to reinvest. Without you knowing what our profit spreads are that's a pretty ignorant comment. As well as you having no idea what our actual overhead may be.
Sounds like a well run venture. OP, imo I'd do it so that your incomes are proportionate to your initial investments in the company or the amount of hours you work in relation to each other.
Indeed it is.
[font=Arial, Helvetica, sans-serif]We've managed to be recession proof in the real estate investment business all the while becoming a major player in our area in the last two years. Thanks impart to many of the larger firms in my area being over leveraged going into the recession. [/font]
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[font=Arial, Helvetica, sans-serif]If a lot of you dudes what sit back and think without trying to be the first to post a reply with a witty message would realize the great networking opportunity that NT holds. I've completed deals with other NTers personally. [/font]
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[font=Arial, Helvetica, sans-serif]To the OP as I originally said, get everything on paper and always be straight forward with your partner. Like ioen said, it's not so much the pay that matters but all parties being satisfied. [/font]
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[font=Arial, Helvetica, sans-serif]Best of luck in business
- 1,525
- 243
- Joined
- Aug 14, 2005
Someone with some sense.
Sorry that I didn't break it down for all the NT math majors. Thought it would be common sense. It's a 50/50 split we both take 40 and put 10 back in EACH. Not that difficult to comprehend.
As far as the comment regarding that not being a sufficient amount to reinvest. Without you knowing what our profit spreads are that's a pretty ignorant comment. As well as you having no idea what our actual overhead may be.
Sounds like a well run venture. OP, imo I'd do it so that your incomes are proportionate to your initial investments in the company or the amount of hours you work in relation to each other.
Indeed it is.
[font=Arial, Helvetica, sans-serif]We've managed to be recession proof in the real estate investment business all the while becoming a major player in our area in the last two years. Thanks impart to many of the larger firms in my area being over leveraged going into the recession. [/font]
[font=Arial, Helvetica, sans-serif]
[/font]
[font=Arial, Helvetica, sans-serif]If a lot of you dudes what sit back and think without trying to be the first to post a reply with a witty message would realize the great networking opportunity that NT holds. I've completed deals with other NTers personally. [/font]
[font=Arial, Helvetica, sans-serif]
[/font]
[font=Arial, Helvetica, sans-serif]To the OP as I originally said, get everything on paper and always be straight forward with your partner. Like ioen said, it's not so much the pay that matters but all parties being satisfied. [/font]
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[font=Arial, Helvetica, sans-serif]Best of luck in business
- 28,197
- 12,542
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- Sep 28, 2003
This. They will always try to procrastinate and pull the friend card when the work is not up to par.
- 28,197
- 12,542
- Joined
- Sep 28, 2003
This. They will always try to procrastinate and pull the friend card when the work is not up to par.
- 6,127
- 6,688
- Joined
- May 15, 2005
Is your partner worth more dead or alive?
- 6,127
- 6,688
- Joined
- May 15, 2005
Is your partner worth more dead or alive?