It all comes down to negotiation and maybe compromise. Are you both indespensible? How indispensable?
You have to put up the figure you think and see if your partner accepts it. You are not going to reach a definitive figure. Losses should be shared the same as profit.
You could treat your monetary investment as a loan or even a convertible loan.
You are obviously not convinced with his argument. Be careful.
I am starting up a company with one of my friend as a partnership firm. We both will be working partners, the question is about profit sharing..
my partner is NT investing anythng in the initial time.. He says it will be only his time and effort in the initial phase wich even I am putting in. I am the one who is investing and hav also brought investors to invest in the business. As per my partner he will give assets like computers not more than 6. Once we shift the location. Wich will be after around 3-4 months after startup,,
I have made a rough calculation since evryone knws 6 computers will cost approx ?60000 since they r used already,
my question is tht since I am investing money time and effort in the initial startup nd he only putting his time nd effort,, nd his investment will come after around 4-5 months..
he is asking for a 50-50 partnership since he is introducing the business, bt I hav an option to go without him and startup on my own bt since considering ethical & moral ettiquettes I am still staying with him.
my question is hw the profit shud be decided btwen two of us,, bcuz I think 50-50 is NT a fair distribution since I am investing in the initial time., bt I am nt able to say this to him, dont knw why,, bt dont wanna make a loss
bcuz since its a business we can incur loss,, he says tht loss sharing will b equal so as per tht in the first month if we incur loss of 1lakh he will be liable to pay me ?50,000.
hw much profit sharing is fair in situation?
