Questions

A business partner I want to bring on is willing to invest more than I am at this stage in the business, but I will be more actively involved in the day to day operations. I want to give him 40% of the company and I retain 60% ownership.. Can somebody advise whether this is in normal practice and reasonable? I've never opened a business of this scale and have never brought on a partner to this capacity.

Your time is money. Your blood, sweat and tears are worth more than most give credit for. He needs to be involved to understand how the capital now being administrated, otherwise other share holder will take you for granted, may expect profit that hasn't been realised. He must be involved or he/ or she will have a toxic leveling ignorance and intitlment may run you both in the ground. That said 20 to 45% .of whAt ? How are you landing
on that number ? It seems rather high and not far from take ng control if more capital is needed, you must maintain creative control. They say.ply need to attend mi Utes and understand what is taking place.bor they may expect more than is available. Businesses take time to budget & grow. Setting aside shares, your salary comes office he top as well, don't sell yourself short. I am sure you know this already , just ensure that what you bring to the table is worth more than money. With that there must be a level of participation until they have the insight that you posses, they need to submit and allow you to be the " Boss ' partner or not there must be a decision maker and those decisions must be respected.


Answered 4 years ago

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