Finance Working As A Working Partner Without Funds?

[Good-Guy]

When it comes to starting a business, most of the people would contribute funds in order to start a business. Partnership businesses are usually formed on the basis of fund contribution and the profits are shared according to the ratio of funds contributed into business. Most of the time, all the partners associated in the business also work in order to promote business and make it more successful. However, there are certain times when an individual never contributes any funds but still get profits. The concept of working partner is almost non-existence in my country because people believe that the person who is running or managing the business is actually an employee. However, there is a big difference between being an employee and a working partner. How common are working partners in your country?

 

[btaliat]

The scenario is not that common in my country and if such even exist, I don't encourage such. I can only advice people that want to go into partnership to try to source the same amount for money and have memorandum of understanding on how the activities and gain should be done.

 

[Mika]

If you have no money to invest in a business, you cannot get a partnership offer. Why would someone make you his/her partner if you can not invest money in the business. Would you offer a partnership to anyone without investing money? But some business owners give 5-10 percent partnerships, provided the person shows a great potential.

 

[Good-Guy]

The scenario is not that common in my country and if such even exist, I don't encourage such. I can only advice people that want to go into partnership to try to source the same amount for money and have memorandum of understanding on how the activities and gain should be done.

The situation is quite similar in my country. If you have no money, you have no value. It is a sad reality. If a person has no money but he has skills, then he will only work as an employee for other, not as a working partner. However, some people do become working partner in many developed countries where they use their skills and demand a share in profits rather than working as an employee. However, such a scenario is really rare.

 

[btaliat]

The situation is quite similar in my country. If you have no money, you have no value. It is a sad reality. If a person has no money but he has skills, then he will only work as an employee for other, not as a working partner. However, some people do become working partner in many developed countries where they use their skills and demand a share in profits rather than working as an employee. However, such a scenario is really rare.

That's the reality in Africa and some other developing countries. They put much more value on money and not skill. Advanced countries pay you because of your skill and not even your certificate that they believe you can get through backdoor means. It is a sad truth but we just need to hsutle to make sure instead of being a working parent, we should start ours even if it small.

 

[Alexandoy]

A partner with no share in the capital is called Industrial partner. Usually the Industrial Partner is the one with the knowledge on the operation. It is common in small manufacturing business like making soap or candles that are distributed to the nearby retailers. Actually the Industrial Partner works like a manager or consultant.

 

[Good-Guy]

A partner with no share in the capital is called Industrial partner. Usually the Industrial Partner is the one with the knowledge on the operation. It is common in small manufacturing business like making soap or candles that are distributed to the nearby retailers. Actually the Industrial Partner works like a manager or consultant.

You are right when you stated that such a partner is called a manager. In my country, such people are not called partners. In fact, they do not even have any share in the company. They are hired as managers and they only work for salary. They have no more value than that and this is a harsh truth.

 

[Chibson]

Partnership business is good when everybody invest the same amount of money or almost the same amount of money. this is because the business will be well-financed. But there are some cases where investors become sleeping partners and finance the business while others do the operations of the business but they still make profit.