Am I in the right to ask my business parter to review our % of shares?
Hi, my partner and I started a business 3 years ago. He is the 100% investor and I have the knowledge on how to run the business and also the idea with a share of 70% for him and 30% for me. He was new in this type of business and without knowing how to run it on a daily basis. After 3 years, we made a successful company and we started sharing profits. I'm doing 90% of the work and he is not working at all to help grow the business. He's returned 60% of his capital investment and I'm considering asking him to review our agreement and start sharing 50-50%. I would like to know if this is a fair expectation for me to ask.
When I read your question here, I can easily understand that it's not only your problem but the problem of many people like you. When the skilled people is not having money to invest, they often get help from the rich ones to invest and often the agreement will be like 70% - 30%. But as the business grows, obviously the one who is working for the company's growth will think that it's my efforts and hence I should get paid more than what's I'm getting now. It is what happened to you.
Okay, now come to another part of the story. The one who invested will think that I have spent a lot of money to get this company running, otherwise the partner should have stayed in another company in a low profile work. I helped him to be in a position he is now. So he must be respecting me for all that I have done for him.
It's going like this. You are thinking about your efforts while the invested person is thinking about helping you by giving his money when you had nothing.
So first of all, don't think that it's all your efforts. Because, without his money you are nothing during those early days.
Secondly, you can ask for an increment or renewal of contract, but I will never support a 50%-50%, better you can ask for a 40%-60% new agreement, that seems a fair move to me.
Professional Trainer at Housekeeping Co