tech-company, fundingI am a Developer and I am trying create a business with a partner. Basically he is the owner of the idea and he wants me to implement this idea. Basically he puts the idea and some money to build a product what will be managed for a software of my responsibility. So in summary is something like:
My partner : Idea + 2300 USD to build the product
Me: As developer build the software (cost is more less 6000 USD according salary/hour).
So my question: is that fair?
I think there are 2 aspects of your question which people often confuse.
You are asking how to share business. In my opinion your initial input gives you a good indication since he would have to pay that much if he will choose to develop it himself right? World is full of people having ideas but it is the execution that counts. I would say if you feel equal with your partner go for 50/50. Please remember that this has ABSOLUTELY nothing to do with profits from business. Having 50% of shares means only that you have 505 liability and 50% of extra money that company might decide to pay (highly unlikely)
You are asking how to share profits. In this case I think you need to ask yourself as others pointed out, what your partner will do on every day basis? Will he continue to invest his time? His money? His efforts? Will he learn how to code? What happens if company will make 5000 USD turnover in the first month?
The company would have to pay for its servers, subscriptions, licences etc. How about employees? How much will you make per month for running it? 2000 USD? How much he will make? 1000 USD maybe 2000 USD. Will you then have any money left to invest? Etc.
Those are 2 most important points that you can not connect or confuse. In reality I would not care much about my shares. If company is successful you will make enough anyways. The important bit is the every day reality, taxes and money to grow and it has nothing to do with percentage of business idea.
Hope it helps!
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