If you start an event planning company with 5 other people and you hold all the executive power..?
Answer:
Profit should be shared equally because all of you have contributed equal amount to start up the company. But you should assign a salary to each individual for the amount of work you do . For example;
You got $2000 for an event.
Then you asssign an hourly pay for each individual e.g if you work 20 hours for that event , and the rest do 10 hours each , pay yourself and the others for those hours ( pay should be predefined by your board members, which is 6 of you). If all of you guys decide that the hourly pay , for example , is 20 dollars an hour , then you get paid $20*20= 400, and the rest 5 get paid 5*10*$20 = $1000.
So , ur total expense is $ 400 + $ 1000= 1400
Thus your gross profit is $2000-$1400= $600
Then, the amount of profit each of you will get is $600/6= $100
CAUTION:
Dont try to persuade your partners that your hourly pay should be greater just because you think you have the executive power. Remember you are just starting a simple business , not a corporation. Be friedly with your partners. They own the company as much as you do. It takes not just the money, but the communication skills, compromising attitude and team bonding skills to be an executive. Other Questions and Answers: