Rich asked:
Looking at starting a small landscape supply yard. I have my funding ready in the bank. He is still working on his cash but should have it soon. He has been in the industry as a Yard manager for 5 years. I have 10 years in construction equipment management. He has already found a property, found suppliers and has contacts with existing contractors in the area. His ideas shows us as 50/50 in cash investments but 60/40 in profit sharing. he feels his idea, his leg work so far should give him to a bigger % of the potential profits. I agree it has some value but not a year after year bigger slice of the pie. Any of you have any suggestions for me.
Theodore
Looking at starting a small landscape supply yard. I have my funding ready in the bank. He is still working on his cash but should have it soon. He has been in the industry as a Yard manager for 5 years. I have 10 years in construction equipment management. He has already found a property, found suppliers and has contacts with existing contractors in the area. His ideas shows us as 50/50 in cash investments but 60/40 in profit sharing. he feels his idea, his leg work so far should give him to a bigger % of the potential profits. I agree it has some value but not a year after year bigger slice of the pie. Any of you have any suggestions for me.
Theodore
Judith
I think any partnership should be 50/50 both money invested, time expended, and earnings. Anything else is foolish and dooms the partnership to divorce. Each partner has his own pluses and minuses, and brings his own contacts and experiences.
If you REALLY feel the need to adjust for “his idea and legwork” do it via him putting in slightly less money than you, but keeping partnership equal after that. But I think it is putting you on a bad start. One partner always does more than the other, or thinks he does. Just like marriage.