Business percentages with partners

Discussion in 'Starting a Business' started by Xavier DH, Jun 17, 2016.

  1. Xavier DH

    Xavier DH
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    Jun 16, 2016
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    Hello, I am a aspiring HVAC technician. I am currently enrolled in a technical school for Air Conditioning and will graduating soon. I have made many connections while in school and because of my ambitious mentality I am mastering the trade. I currently work 2 jobs and go to school so I've been able to purchase quality tools to get any job in my field done properly.
    With that being said I've attracted the attention of a "friend" who's father already owns a 5 star rated AC company. They plan to hire me once I graduate starting at $15-$18 but I've shared ideas with my friend and he's now interested in starting a new business with me and his brother.
    At first he was eager to get me to sign a contract. The percentages he said he will take are 30% from every $1 and own 51% of the business.
    My main question here is, is this a good deal?
    I come from a family background of marketing, I'm 21 years old with have a vision, I have many positive traits such hard working,honest and ability to lead and manage. I would most definitely be an asset.
    As for what he offers, any resources,connections,funds, tools , knowledge and wisdom, guidance with running the business, and study guide books to pass an important contractors test.
    Today I actually met with him and picked up the books, but before I get to committed I want to make sure I am getting a good deal. What do you think? If I'm missing any information to help determine then please say it I will keep tabs on this forum daily.
  2. Tedel

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    Dec 19, 2014
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    What a curious question. To be honest, if someone told me he wanted to be my partner but that his share will be 51%, then first I would ask him why he wants to keep more than half.

    I would listen to his reasons carefully. Technically speaking, he would be the owner of the company. Letting him keep 51% could work too, but it depends on the circumstances, conditions, investment percentages, many things.

    As for the 30% profit for you, make sure you have clear it is after taxes; else you will end up receiving less than you expected.

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