Business Partnership

[lczlcz]

I am in the process of starting a food business & thinking about to add a friend to be a partner. I came up with this idea, have the recipes, did all the research, market testing(have very good feed back from the customers). Right now I want the business get off the ground, get started. I want my partner to do some investment, another big reason is that she is a kind of my opposite. I hope she can bring some fresh ideas to help the business grow. Right now I am thinking to split 60/40 or 65/35. I want to be the one to make big decisions & control of the company. Does 5% make a big difference? She has a very good part time job, I have a part time job too, but doesn't work as much as she does. Any good suggestions for the business partnership?

[Owen]

I am in the process of starting a food business & thinking about to add a friend to be a partner. I came up with this idea, have the recipes, did all the research, market testing(have very good feed back from the customers). Right now I want the business get off the ground, get started. I want my partner to do some investment, another big reason is that she is a kind of my opposite. I hope she can bring some fresh ideas to help the business grow. Right now I am thinking to split 60/40 or 65/35. I want to be the one to make big decisions & control of the company. Does 5% make a big difference? She has a very good part time job, I have a part time job too, but doesn't work as much as she does. Any good suggestions for the business partnership?
You're a small business, not a major corporation. Therefor, 5% isn't going to make much of a difference (when it comes to the actual business's operations). If you plan on distributing profits to the owners instead of reinvesting the profits back into the business, if she owns 35% and you own 65%, she would get 35% of that profit and you'd get 65%. When it comes to power, as long as you have the majority of ownership you get the final say.

Same goes if someone were to buy out your business. Unless specified in an agreement, she'd get 35% and you'd get 65%.