Get Back Investment Money?


2

I found a Investor for a Business Idea.
I do 100% of the work and get a monthly payment for approx. 4-6 months.
About that he is the 100% Investor of the whole project.
Its a 50-50 project.

My question is:
- Would it be normal that he gets back his investment if the project makes money?
- If yes can I calculate my work payment higher? (the monthly payment is way too low for the quality)

Thx for answering.

Investment Money

asked Jul 31 '13 at 02:06
Blank
Bergman
13 points
  • No, if it is 50:50 equity, then you and your partner both own 50% of the shares in the business. This is not related to the investment amounts, either your time, or their money. – Steve Jones 6 years ago

1 Answer


1

Investment payback and money distribution is something you should have agreed to from the start, when spirits were high and before the toll of startups get the better of you.
If its not too late you can speak to your partner and work out a solution.

You both own have the company which means you will need to agree, here are some ideas.

Labor done in / on the business will be accumulated as a debt at a set price per hour.

Hard Costs will be paid 50/50 (anything where you have to fork out actual cash) and be counted as a debt on future earnings to be paid out 50/50

Excess cash after expenses and labor will be paid out according to ownership amounts (in your case 50/50).

Dividends are usually paid on profit which means all your expenses and even payments on debt should be paid first then a dividend can be issued.

Any variation of these should work for you make sure to work it out and to put it in writing , when times are extremely good or extremely bad you will be happy its in writing.

answered Jul 31 '13 at 05:04
Blank
Ross Mann
546 points

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Investment Money