How To Share Stakes Between Cofounders

[Spencer]

In business that deals with one or more people, sharing stakes is one of the ways responsibilities can be shared between the founders, there are some salient questions that need to be asked before sharing a stake in a company.

1) Who is Investing Money?
2) Who is Managing Operations?

These two questions can serve as guides in business stake sharing and can help pinpoint the right way to go about it, you should pay attention to who invest the most resources and time as they're the ones that will have the largest share in the company, you can also indulge the service of an attorney.

 

[Mika]

Before you can invest in a business, first and foremost, you need to evaluate the total worth of the business. And how much money you put into the business would be your share. Let' say the total value of the business is $1000, if someone is investing $250, his share would be 25 percent. he will not only bear 25 percent loss but receive 25 percent profits if the business is in profits. Likewise, if someone has invested $300, his share would be 30 percent and he will share 30 percent profit and loss