Profit splits for new venture

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Profit splits for new venture

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FuturesShark

posts: 1

Dec 17, 2007 10:32 AM ET Quote Report Abuse

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Are there any good sites for information on what a "typical" profit split might be in a certain industry? I`m looking into being a financial backer for a short-term business opp where I would provide funding and the partner would provide the labor/management. I`m thinking in the ball park of 50/50 but I would like to see some data on what other have done/offered. I imagine every industry is different but any thing would be interesting for comparison.

vasq

posts: 1

Dec 18, 2007 5:27 PM ET Quote Report Abuse

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I`m starting a mobile carrier service and I need an investor to help me with the intial expenses. I don`t know how a venture like this works but I need funding to get this business up and runnning. Would you be willing to invest in this business?

robertj

posts: 1458

Jan 04, 2008 12:18 PM ET Quote Report Abuse

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Remember - there is (can be) a difference between how the (operating) profits are distributed and the percentage of ownership in the entity.

Without specifics, I can`t offer an actual suggestion - but you could consider the value of his work as compared to your investment as another factor in deciding how to divvy up the results.

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