Should you do 50/50 on startup for your business
There is no right or wrong in doing 50%-50% with a business partner, but there are always pros and cons to this situation. I started my business with my business partner 50-50, and I will also share my personal experience and opinion in this article.
Starting a company for the first time with your best friend as your business partner will tend to be fair and have 50-50 at the beginning, especially when both of you bring up the same equal amount of startup cost. Still, there are many things you should consider when doing this.
Time, Effort and Contribution
You should ask yourself if the time that you put into the business is equal as well? You should be involved in equal time and effort if you have 50/50 sharing. Suppose one of the partners can’t put enough or any effort into the business. In that case, the person who will be doing more should get a higher percentage of shares to manage the company better and have the final authority to make any decision.
The Boss
When it comes to equal sharing, especially for multiple business partners, you should decide who will have the right to make the final decision when some problem comes out. The “boss” should be the person who is always at the company and putting the most effort into the business to let the business grow smoothly.
Conclusion and advice
There will also be a problem when one of the business partners has a higher share and has the final authority decision on everything. The business partner might overpower and won’t even consult and communicate among the business partner with a lesser percentage.
When it comes to some point, I will support a 50-50 business partnership, but only when you find the right partner to work on together and are willing to involve the same effort and responsibility to the business. Good communication also plays a part when getting the right business partner. It will never be accessible when you work as hard as possible, and your partner isn’t putting effort into the business.
