Is 50/50 split in shares fair if I'm doing all the work?

Discussion in 'Growing and Managing a Business' started by guitarmansam, Aug 1, 2014.

  1. guitarmansam

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    Aug 1, 2014
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    Hi Everyone,

    Thanks for reading this and I'd greatly appreciate some advice from those with more experience than myself!

    I am starting a new music tuition company with an owner of a music shop. The proposed deal is to be able to make use of unused rooms in the shop which the new company would rent from the music shop and I would run the new music school giving the shop owner 50% of the profits and taking 50% for myself both as dividends.

    The shop owner will pay for the start up costs which will equate to approx. £2000 and advertise lessons in his shop also. Other than the money, I the sole director will be taking care of everything else, marketing, recruiting teachers, opening and closing the music school, admin etc.

    My question is, is 50% fair? The benefits for me are no upfront cost, the use of a well known name in music. Although the new company will be paying the rent of unused rooms anyway and will transfer business to the shop also. So im trying to figure out if im doing all the work, should I be asking for a larger share percentage?

    Any help would be greatly appreciated.

    Kind regards,


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