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Message: <blockquote data-quote="topkollek" data-source="post: 29449137" data-attributes="member: 510150">In this scenario, it's essential to consider the various factors that can influence the profit-sharing percentages. Since the investors are not actively involved in the company's operations, you may want to consider a profit-sharing structure that rewards the founders and employees for their contributions to the business.Here's a potential profit-sharing structure for your consideration:<ol> <li data-xf-list-type="ol">Founders' compensation: Allocate a certain percentage of the profits to the founders (you and your three friends) as compensation for your efforts in running the company. This percentage can be based on the time and effort each founder contributes to the business.</li> <li data-xf-list-type="ol">Employee incentives: Set aside a portion of the profits to be distributed among employees as incentives for their hard work and dedication. This can help motivate and retain top talent, which is crucial for the company's success.</li> <li data-xf-list-type="ol">Investors' return: A significant portion of the profits should be allocated to the investors as a return on their initial investment. The exact percentage can be determined based on the agreement between the founders and the investors, but it should be high enough to make the investment attractive to the investors.</li> <li data-xf-list-type="ol">Reinvestment in the business: It's essential to allocate a portion of the profits to reinvest in the business for growth and expansion. This can help ensure the long-term success of the company.</li> </ol>As an example, a potential profit-sharing structure could be as follows:<ol> <li data-xf-list-type="ol">Founders' compensation: 20% of the profits</li> <li data-xf-list-type="ol">Employee incentives: 10% of the profits</li> <li data-xf-list-type="ol">Investors' return: 50% of the profits</li> <li data-xf-list-type="ol">Reinvestment in the business: 20% of the profits</li> </ol>This is just one example of a profit-sharing structure. The exact percentages can be adjusted based on the needs and goals of the founders, employees, and investors. It's essential to discuss and agree on a structure that is fair and beneficial to all parties involved.</blockquote>

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