Question
Is div. possible mathematically, by working the weight of each contribution say example finance will weight - 50%, technical expertise - 25%., operations -25 % etc
1. land partners : land Owners providing Land - 25% weightage
2. People moving on initially and starting the processes at ground level , physically staying on site, Managing early day to day business. Setting up infrastructure at remote sites - 20 % weigtage
3.Working Partners : People moving in after process initiated and Managing day to day business of running - 20% weightage
4.Financial Risk Partners : People taking financial obligations , like arranging & providing finance, providing co-laterals security /morgaging properties, financial liabilities - 40 %
5.Technical Expertise partners : People having In & out knowlwdge of the workings of the business sector. - 20%
6. Anything else can be added or removed - X %
Land : project cost ratio - 1:40
All further investement will be generated from the business itself.
all weightages to be added and equal to 100 %.
can any one help in deciding the % weightage for each contribution. and justify the same.
Answer
In my experience, it is best to wait as long as possible before dividing up equity. At the end of the day, "value" is usually going to be defined by how hard people work and how much they contribute. The more indispensable a person is, the more equity I would give them.