Profit sharing in business.

[Niyi]

Profit sharing among partners can be a great way to incentivize teamwork and boost motivation. However, disputes can arise when it comes to dividing the profits fairly.

How can profits be shared and there are no conflicts and disagreements?

 

[Salt]

The profit sharing should be as per the investment in the business and also as per the role assigned to the partner

 

[Niyi]

I think that Profits can be shared among partners through pre-agreed ratios in a partnership agreement or by distributing profits proportionally to each partner's investment or participation in the business.

 

[Salt]

Many times this profit sharing is only as per the investment but if the other partner is doing more for the business and is responsible for the profitability of the business then they should be allowed to get an equal profit share even though their investment is on the lesser side.

 

[Nsikan]

I always tell people to define terms and document it promptly. It would help to minimize disputes when it comes to the point of sharing profits.

 

[Bisolami]

The profit sharing should be as per the investment in the business and also as per the role assigned to the partner

It should be per investment and it should also be according to the contribution of their efforts.

 

[Salt]

It should be per investment and it should also be according to the contribution of their efforts.

That's what I explained above because it should not be only based upon investment but on our work too and our total contribution towards work should be considered