Penny for your thoughts...

[PlatyPius 5]

If I were Joe, and those friends had indeed worked very hard in my business and made it a success, I would give them ownership stakes. I wouldn't make them full equal partners, as it was my business to begin with. I'm thinking a 15% stake each with me retaining 40%. Then I could devote time to my other business and not worry so much about my first one.

[William33 110]

If I were Joe, and those friends had indeed worked very hard in my business and made it a success, I would give them ownership stakes. I wouldn't make them full equal partners, as it was my business to begin with. I'm thinking a 15% stake each with me retaining 40%. Then I could devote time to my other business and not worry so much about my first one.

Excellent call Platy!! Integrity shines through!!

[Ling Ling 22]

If I were Joe, and those friends had indeed worked very hard in my business and made it a success, I would give them ownership stakes. I wouldn't make them full equal partners, as it was my business to begin with. I'm thinking a 15% stake each with me retaining 40%. Then I could devote time to my other business and not worry so much about my first one.

Ehhhh, I'm thinking that wouldn't be so bad...but a 10% stake with me retaining 60% sounds better

Business continues to function, prosper, and grow. Friends are now owners and can increase their wealth with their effort.

I can pursue other interests and still retain adequate and fair revenue from the business I built...sounds good to me.

NOTE- I say Joe keeping 60% is more than fair because it's his business. Joe came up with the concept, took the risks, and should continue to

reap the rewards of his early investments. The idea of "I should get half because I'm doing all the work" is a typical EMPLOYEE mentality.

Employees often think they're doing all the work. They don't see (or appreciate) the capitol investments, effort and sacrifices that created the business. They don't realize that even when the business isn't making money, the business still has to pay rent, utilities, advertising and other expenses. All the employee sees is that X amount is sold and they receive Y (which is disproportionate from and has no relationship to X).

Here is a case where commission based or cooperative business structures may achieve both increased satisfaction as well as effort on the part of the employee. But not always. That is, there are some people whom paying more money will not result in increased effort or satisfaction.

[DeadPoolX 9]

This has already been stated, but... Joe has no legal reason to pay his friends, all of whom are volunteers. Perhaps he might feel some moral need to do so, but his friends could never take him to court and demand compensation.

The problem with this setup is that while Joe doesn't have to pay them, he should do so in order to keep his business earning more money. Since his friends are doing the "grunt work," he's saving a substantial amount on time and employee salaries. If his friends were to suddenly get tired of doing this, he'd be left with no one to do his work and he'd need to find new people and train them. All of that would amount to lost time and earnings for Joe.

Worse yet, if his friends get fed up with helping -- but don't want to leave or say anything, afraid that doing so would jeopardize their friendship with Joe -- they might begin skimming off the top. A few dollars here and there add up. In the end, Joe would eventually catch one or more stealing and fire them, along with losing them as friends.

It's to Joe's benefit to at least pay his friends a nominal amount. Since they volunteered, they'd probably be happy with any money in their pocket and a happy employee is one that works hard, thereby earning the company more income.

[ronjie 0]

thats a lot of thought's,... and the penny's are adding up !!

[Sister Fracas 5]

I can't think this early in the a.m....can I still have a penny?