Equitable Partnership Distribution: Recognizing Contributions in Business Ventures for Founding and Non Founding Partners

Assessing Individual Contributions:

Founding partners A, B, C, and D, alongside non-founding contributors E, F, G, and H, each bring tailored expertise and efforts to address specific business needs.

Founding partners A, B, C, and D would be allocated their respective shares based on their initial contributions to the business.

Non-founding partners E, F, G, and H, contributing in areas such as marketing, technology, HR, and finance, would be entitled to a portion of the profits, potentially determined by a predetermined agreement like profit-sharing or performance bonuses.

Calculating Total Contribution:

The collective endeavors of all partners, both founding and non-founding, across various business facets, are evaluated to determine their overall contribution.

Founding partners' ownership stakes are calculated based on their stipulated contributions, while non-founding contributors' compensation can be structured through mutually agreed-upon models such as profit-sharing, performance bonuses, or equity options. This ensures fair acknowledgment of the value they contribute to the venture.

It is agreed that founding partners would receive 50% of the profits, while non-founding partners will receive an equal share.


Total profit earned by the business: ₹60,00,000

Let's determine the proportion of each founding partner's contribution to the total contribution:


Partner A (Sales): 25% of the total profits

Partner B (Expertise & Operations): 20% of the total profits

Partner C (Expertise, Operations, and Capital): 30% of the total profits

Partner D (Capital and Sales): 25% of the total profits


Founding Partners (with agreed-upon contributions):


- Partner A: (25/100) * ₹30,00,000 = ₹7,50,000

- Partner B: (20/100) * ₹30,00,000 = ₹6,00,000

- Partner C: (30/100) * ₹30,00,000 = ₹9,00,000

- Partner D: (25/100) * ₹30,00,000 = ₹7,50,000


Non-founding Partners (collectively receiving 50% of profits):


- Partner E (Marketing): ₹5,00,000

- Partner F (Technology): ₹10,00,000

- Partner G (HR): ₹7,00,000

- Partner H (Finance): ₹8,00,000


The total amounts received by the non-founding partners sum up to ₹30,00,000.


Thus, the non-founding partners would collectively receive ₹30,00,000, with individual earnings as specified above.

For business consulting, contact us at induscrm77@gmail.com Website www.indusglobal.biz

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