Forums: Discussions for entrepreneurs and small business.

Hi guys,

This is the situation. I am an Engineer, usually working at Construction Project Management.

A friend of mine wants me to present him and his partner a business plan for a small/medium PM company that I would lead. They will be investing 100 % of the money. I will be investing 100% of the work. I will have a salary and they want me to propose to them the profit split I would consider reasonable. The investment should be around 100000 to 150000 $. Since this is a special situation, how much would it usually be fair to ask for.

Thanks

Miguel

And one more thing.

Their company is working in the real estate area. They thought about this because they felt, by interacting with with their clients they could have a lot of business opportunities in the PM area we are thinking of. So this project probably has a low to medium risk.

Thx

Miguel,

considering that they are putting up the capital and paying you a salary -I think it's great that they are willing to entertain the idea of sharing some of the profit.

 

If your salary (compensation) will be at market rate - then some level of profit should be "expected" as part of your job.

After the company exceeds that expectation - then I think you should get 25-50% of the amount over the plan.

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