Capital and How to Share Profit on The Results System for a Business

Examples of Systems How to Share the Business Results of Investor and Manager as well as profit-sharing in limited liability companies based on anything? We will review it here.

profit share plan

Starting a business certainly requires less capital.

For those who have business savings, capital is not a major problem faced.

But it is different if you have not prepared everything and have limited funds.

You can still start a business with a profit-sharing system.

If you have a problem, do cooperation with the way the system for investors and managers can be the best solution.

In the profit-sharing system, not just you who get funding assistance to build a business, investors will benefit in return.

Following is the system for the results of the business of investors and the right manager

There are three types of capital providers in this system, each of which has a calculation of profit sharing in a limited liability company.

The financier includes:

Investors as well as colleagues

The first profit-sharing system that you can find is investors and coworkers.

If you carry out a business joint with friends, this system is very possible. For example, your friends provide capital as well as being active co-workers.

However, remember that active co-workers are also employees.

Therefore, it is also entitled to get two-income, namely dividends from capital and salaries from work.

Dividends or net profits are obtained after future investment cuts and operational costs.

The profit distribution is also adjusted by the large percentage of capital implanted at the beginning by each capital owner.

The profit-sharing system obtained by investors will later be accumulated and given once a year.

The right of both is the salary for performance so far.

Different from profit, you must give it every month, it can be at the beginning of the end of the month depending on the business system.

For example, A and B set up a shoe store.

Each of them issued capital for the establishment of $ 100 million from A and $ 200 million from B.

Then the overall initial capital is $ 300 million.

From here, it can count on the percentage of capital by each owner.

A ownership of A.

(100 million / 300 million) x 100% = 34%

Ownership B Non

(200 million / 300 million) x 100% = 66%

A and B agreed to receive a monthly salary of $ 6 million.

So how is the system for the results of investors and managers?

Say the shoe store get a profit of around $ 400 million this year, then the estimated profit sharing is as follows.

Profit of $ 400 million

Investment next year $ 200 million

Operational costs of $ 50 million

Dividend = $ 150 Million

Dividend calculations for A and B:

Dividends for A = 34% x Rp 150 million = $ 51 million

Dividends for B = 66% x Rp 150 million = $ 99 million

And the income of each of them is as follows.

Income A:

Salary of $ 6 million x 12 months = $ 72 million

Dividend of = $ 51 Million

A total of = $ 123 million

Revenue B:

Salary of $ 6 million x 12 months $ = 72 million

Dividend of = $ 99 Million

A total of = $ 171 million

Use the system for the results of the process of financiers and the right manager, such as the example above.

Investor in stock

An investment system that finances companies in the form of shares is often referred to as investors.

Because it is usually a profit-sharing in a limited liability company based on how many shares are owned by someone.

An investor usually only provides capital and is not involved in operational activities.

Then the profit-sharing in the Company is limited based on anything?

How to distribute profits on systems for capital results is managers to get monthly salaries and dividends.

While investors get income from dividends.

Before starting a business, these two parties must agree first about the percentage of the division for each.

For example, C, D, and E agreed to open a laundry business. Then, C and E which have little capital require E to become investors.

C provides $ 60 million, D provides $ 60 million and e gives capital of $ 180 million.

Then the overall capital collected is $ 300 million.

From each of these capital will get the following percentage.

C issued a capital of $ 60 million

(60 million / 300 million) x 100% = 20%

D issued a capital of $ 60 million

(60 million / 300 million) x 100% = 20%

E issued a capital of $ 180 million

(180 million / 300 million) x 100% = 60%

How is the System for the results of investors and managers, based on the model above?

If the manager and investor agree, the percentage of capital giving can be used as a percentage of profit sharing later.

Remember again that the manager has the right to get a salary for their performance.

And they agreed to pay themselves amounting to $ 5 million per month.

This year the laundry business that has been run has a profit of around $ 300 million.

In addition to stock prices, profit sharing in limited liability companies is usually based on dividends.

Then the estimated dividend distribution is as follows.

Profit of $300 million

Next year's investment of $ 100 million

$ 100 million operating costs

$ 100 million dividends

Furthermore, the calculation of dividends for C, D, and E is a system of ways to share investors and managers are as follows.

The nominal dividend for C = 20% x $ 100 million = $ 20 million

Dividends for D = 20% x $ 100 million = $ 20 million

Dividends for E = 60% x $ 100 million = $ 60 million

And their respective income is as follows.

Income C:

Salary of $ 5 million x 12 months $ 60 million

$ 20 million dividend

A total of $ 80 million

Revenue D:

Salary of $ 5 million x 12 months $ 60 million

$ 20 million dividend

A total of $ 80 million

Income E.

$ 60 million dividends

Investors in debt form

How do you share the business of investors and managers in this form?

This type of financier usually calls itself a creditor.

A creditor is almost the same as an investor in a business, which is just giving capital.

But what distinguishes is that creditors provide capital in the form of debt.

The same when you owe with institutions such as banks and others, in debt agreements must be in debt, interest, and maturity.

Capital status is debt and no attachment between business managers and creditors.

So that repayment is under the initial agreement and how many dividends do not affect payment of debt later.

Likewise, at the time of business worst, creditors cannot be involved and business managers must continue to undergo an obligation to pay debts.

You must still pay according to maturity.

If it passes through the Tempo, the two parties are agreed, then the risk of interest is increasing, then the business manager must be able to deal with it.

Therefore before deciding to take capital through creditors, you must calculate in detail the amount to be borrowed, the business skills in obtaining money, and the period for you can return borrowed funds.

Don't let the numbers you spend are not realistic and burden you when you have to pay.

Those were three forms of profit-sharing that we often encounter when establishing a business.

You just do the system above, but you still have to pay attention to many things.

Make a clear agreement whether capital only you can from investors or both parties. Especially for capital from investors.

You have to agree as clearly so that there is no problem later.

For all types of capital, partners must know business development, the limitations of the results must be clear, and what models form from the distribution of this profit.

Conclusion

Pay attention to your financial management. Don't spend advantage just to be enjoyed by business owners.

Promotional and investment costs need to be your concern. You must make sure there are remaining funds.

Know the right proportion of this division, with clear financial calculations.

Well, now you know the system example way for the results of investors and managers also distribution of profits in limited liability companies right?

Now you can also answer questions related to "profit-sharing in a limited liability company based on what?"

Hopefully, this information is useful for those of you who need it.