Sat. Apr 20th, 2024

Where there is capital gathering, of course, there is also profit-sharing from the profits obtained from a get started business. Indeed, when we want to run a business, we often raise capital from other parties, because the amount will not be enough if we only rely on the funds we have. The parties who then contribute to the number of funds that will get a share of the business profit sharing after experiencing profits.

This discussion will discuss how to share the profits from the business that is run. This includes, of course, the parties involved in the profit-sharing process, as well as the different calculation methods in doing the profit sharing.

Business partner
Before discussing further how to share business profits, we will first review business partners. It is almost impossible to run a business without a business partner because a business is difficult to run alone. Business partners that will be discussed this time are those related to capital ownership and of course business profit sharing.

The following are three types of business partners based on capital ownership and employment participation:

1. Colleagues
This first business partner, apart from providing a number of funds as the company’s initial capital, also plays an active role in running the business or company operations with you. There are differences in profit sharing with these co-workers which will be discussed further in the next section.

2. Investors
This business partner only provides a certain amount of capital for your business activities without any interference or involvement in operations. Capital can be given in the form of money or even shares, especially if your business is already open (go public). The profit-sharing given to investors is adjusted to the percentage of capital they submitted at the beginning.

3. Creditors
This business partner provides funds in the form of a loan to you and is usually an external party to which the business or company is run. They do not get profit-sharing from the business, but you have an obligation to pay a certain amount of money as well as interest according to the agreement and the specified time period.

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