I was doing some calculating a couple of days ago and one question came to my mind: How many people would work for free in a company until it makes a profit and then split the profit each month? Would you do it? I believe that I would if the approach to me was good enough. Share your thoughts.... p.l.u.r.
I wouldn't because what will I live on while waiting for the company until it becomes profitable? And what if the company never became profitable? I would have wasted my time for nothing.
Depends how much you think the company will be worth when it becomes profitable And also if the % split is reasonable.. you don't want the higher level guy taking most of the profit and leaving you with a small share..
Depends on what company it is and if you get a management position and how you define profitable.. there are many ways in accounting so a successful company never makes a profit (and pays taxes on it). So while it may be a good idea, in reality you may never earn anything if your partner/the manager doesn't want you to or you didn't put everything on paper.
What this mate says is 1000% rite,how wud u know when the company is gonna make profit....if u tell that and depending on its status I will decide
It depends on the situation. I have done this on multiple occasions with varying results. One company I worked as a partner until it became profitable, but I only worked part time. So even when it became slightly profitable, it was bonus. Another time, one of my partners spent a considerable amount of money on things that we would not be able to monetize for a long time. I was paid salary for a bit, but ended up working full time for over a year without payment, only to come to the conclusion that the company was going nowhere and it was time to start over. We are selling that company now, and I will receive a portion of proceeds, but not a years worth of pay. And yet a different time, I worked for about $400/mo for over a year until the company found profitability. We actually ended up selling a portion of the company, and I received one third of the proceeds, and a nice salary for 3 years after. It's business, there is risk. You just have to narrow down the possibilities, have a solid plan on how and when your lines are going to cross and provide you with income, and have an exit strategy should you miss those targets.
Any small business takes many, many long hours to establish. Like it or not, you will be working for free for a while. Taking on partners in a business is an additional risk. You know you have more people to share the profit with if the business takes off. On the other hand, you also have more people to share the risk. Finding people you work with well is the hardest part. Until you get going, you may not know who you're working with. Some people are leaders and some are followers. Too many chiefs and not enough indians makes for a rough ride. David Beyer
most potential business owners that would suggest such a thing are not in a position to become a success. They are looking to make their risk your risk. If they believed in their venture and had the skills and abilities to make it succeed they would not consider giving you a percentage. If they have a proven track record of success, and the venture has merit, they can certainly find the funding to pay you a salary rather than give you a percentage. I would only give someone a percentage if I expected them to do most of the hard work and I didn't want to risk anything in the venture.
i have done it before can be pretty lucrative it is just a risk reward analysis....50% profit share probably means it is a little risky but it is up to you...