How to formulate profit sharing into business plan

[jatwood12184]

I am currently writing a business plan, but as most..I am struggling with the financial section. The investor I am writing this for is open minded to profit-share with me. Unfortunately, I don't know how to portion the cut. If he is putting in the initial capital to fund the project then he obviously carries a bit more risk than I. Any ideas out there?

Thanks,
J

[peterjhale]

Hi and welcome

It's up to you how you decided to split your profits based upon your risk

In your BP you will enter both your investments as your initial cashflow input

Then whatever you have left it's up to you how to split it

Decide first and get it in writing