Profit splits for new venture

Are there any good sites for information on what a "typical" profit split might be in a certain industry? I`m looking into being a financial backer for a short-term business opp where I would provide funding and the partner would provide the labor/management. I`m thinking in the ball park of 50/50 but I would like to see some data on what other have done/offered. I imagine every industry is different but any thing would be interesting for comparison.
Sign In or Register to comment.
Comments
vasq12/18/2007 5:29 PM
Are there any good sites for information on what a "typical" profit split might be in a certain industry? I`m looking into being a financial backer for a short-term business opp where I would provide funding and the partner would provide the labor/management. I`m thinking in the ball park of 50/50 but I would like to see some data on what other have done/offered. I imagine every industry is different but any thing would be interesting for comparison.
Remember - there is (can be) a difference between how the (operating) profits are distributed and the percentage of ownership in the entity. Without specifics, I can`t offer an actual suggestion - but you could consider the value of his work as compared to your investment as another factor in deciding how to divvy up the results.