What's your view about having a sleeping partner in a business

[cherry123]

A sleeping partner only contributes some kind of capital in a business and doesn't take active part in the business but you have to share the profit of the business with the person. Do you like this kind of partnership?

 

[Starmix]

A sleeping partner only contributes some kind of capital in a business and doesn't take active part in the business but you have to share the profit of the business with the person. Do you like this kind of partnership?

It's also better that way for it's you who can control your business no other eyes to see you boomed. That sleeping partner can't manipulate you.

 

[Hate2Wait]

This is mostly in the case of the family business if I am not wrong like two brothers become partners of a company but I don't think we should go for such partnership

 

[Starmix]

Better hire a business partner not family related for there is always contradictions.

 

[cherry123]

It's also better that way for it's you who can control your business no other eyes to see you boomed. That sleeping partner can't manipulate you.

Yesh I think too but the profit would be still be shared to the sleeping partner since he or she brought some capital.

 

[Starmix]

That is correct, no choice for the business may not materialize without the capital of the sleeping partner. His money makes the other benefits profit despite he or she doing it solo. The silent partner will just come to check the inventory and monitor the system. But I believe the other party after paying the 2nd party may opt to operate the business alone after saving some amount for his capital.

 

[Shavkat]

I cannot work with this kind of partnership with a partner. It is not fair that I am working hard and he is just receiving the fruit of my labor.

 

[Mikky]

Partners like that can be perfect if there can be a concrete agreement on how to decide the profits, that can be the only issue for having a sleeping partner. You don't expect someone working hard day and night for the success of the business to take the same cut of the profit as someone who does nothing other than contributing to the business capital.

 

[cherry123]

I cannot work with this kind of partnership with a partner. It is not fair that I am working hard and he is just receiving the fruit of my labor.

But he has brought capital to the business.The agreement might have included the person sharing profit with you.

 

[Starmix]

Partners like that can be perfect if there can be a concrete agreement on how to decide the profits, that can be the only issue for having a sleeping partner. You don't expect someone working hard day and night for the success of the business to take the same cut of the profit as someone who does nothing other than contributing to the business capital.

You're absolutely correct, a sleeping partner despite it's his capital but I disagree to the idea of having a 50/50 profit sharing. It's so unfair to the other party who manned well the business unless there is a memorandum of agreement that the sleeping partner could get back his capital when see his partner having savings to start in his own. I'm hoping it's like that.

 

[Mikky]

You're absolutely correct, a sleeping partner despite it's his capital but I disagree to the idea of having a 50/50 profit sharing. It's so unfair to the other party who manned well the business unless there is a memorandum of agreement that the sleeping partner could get back his capital when see his partner having savings to start in his own. I'm hoping it's like that.

I don't think it will work that way because the sleeping partner is just like an investor who invested his capital in the business probably to earn passively but this issue can be sorted if there can be an agreement from the on start about how to share the profit in a way that each party will not feel cheated.

 

[eldavis]

Generally speaking, if the capital the so called sleeping partner brings to the table is meaningful, i don't see a problem in having one. After all that was the agreement in the first place. Personally i dont think i need any form of partner for my business now though.

 

[cherry123]

Generally speaking, if the capital the so called sleeping partner brings to the table is meaningful, i don't see a problem in having one. After all that was the agreement in the first place. Personally i dont think i need any form of partner for my business now though.

Yes profit split will definitely be to the percentage that was agreed in the first place. But the active partner will take the lion share.

 

[Suba]

There are many types of equity participation, one of which is a sleeping partner. Most types of partnerships are in the family circle, or close friends. Even though I like the sleeping partner, it must be written both the length of the investment and the company profit sharing.

 

[cherry123]

Yes it is always good to have everything on black and white. Even if the person is a family member it is good to have all agreements documented.

 

[Bisolami]

A sleeping partner only contributes some kind of capital in a business and doesn't take active part in the business but you have to share the profit of the business with the person. Do you like this kind of partnership?

I would not take that because I would not like to be the only one running around and thinking of how the business will go well

 

[cherry123]

I would not take that because I would not like to be the only one running around and thinking of how the business will go well

But the person would have contributed capital and might not have the time to run around for the business

 

[uptrendfinancialsignal]

There are some people who do not know anything about the business but they have capital to invest. Such people do lots of partnership business.

 

[flower]

Such kind of partnership is very wonderful because you're going to use their capital to augment yours inorder to run a successful business.

 

[Golden9]

Most times, it easier to have a sleeping partner than an active one. You can do as you wish, while avoiding the clashes that come with working with another person.