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what is the standard % of profit you may earn if you let a financer use your registered business name to him?

say, i ran out of capital, my friend is interested to run my business with his own capital. all expenses will be shouldered by him, how much profit shall i ask from him?

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  • ?
    Lv 6
    1 decade ago
    Favorite Answer

    You can ask whatever you think you are intitled too. There is no set amount. Some companies are recognized by a specific name. and if that were changed it would affect the business. So often when people sell a business a value is put on the name especially if it is well established. This is called Good Will.

    Sometimes re numeration is a lump sum or profit sharing etc. You need to sit down with your Financier and agree to a percentage. The best way to handle this situation is to bring your financier in as a partner. therefore you are still listed as an owner and entitled to a percentage of the profits. Often the amount the person invests determines his profit share. If you have invested 20% and he invests 80% capital, you get 20% of the profits. He is also entitled to a salary as well as % of profits if he is running the business.

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