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/biz/ - Business & Finance

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57281398 No.57281398 [Reply] [Original]

I am opening a fitness studio and spa with the money I made selling legal weed in New York. I am hiring a manager. I want to give the manager percent ownership.

Is there a typical percentage for situations like this? The manager is experienced at running successful businesses and will be instrumental in my business's success. They threw out the number 25%, I think that could be fair. They will also be getting a salary. What does /biz say?

>> No.57282363

>>57281398
bump

>> No.57282652

>>57281398
if you give out 25% while you don't take a salary from the business then you're looking at putting up all of the capital and kneecapping your returns at the startup stage.

you have no idea if this guy will drive your business to success.

if you want to give a % of the company, do it small 3% or so at first, with possible room to renegotiate based on the manager's success.

the thing is, if you grow the business and want to take on investment, suddenly that 25% looks a lot larger than it need be, as you will only have 75% to then sell for additional capital.

i would almost say don't give any % until he has proved himself loyal and the business has started to make money. you are taking on all the risk by putting up the capital, so don't give away things you don't need to.

take a long term approach.

if this is a problem for the manager, find one that will do the same job on 0% ownership.

>> No.57283023
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57283023

>>57282652
solid perspective, thank you anon

>> No.57283111

>>57283023
it's nice to be able to have threads on biz that aren't just shitcoin scams...building a legit business is hard work, and is the only route to actual freedom

>> No.57283141
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57283141

>>57283111
checked and factual

>> No.57283743

>>57283141
if you want some more biz consulting unicci@pm.me