+4 votes
in Funding and VCs by Student (112 points)
How can More than two shareholders  be profitable for a Founder or a Business Owner.

I fear that, If I start a new business with sole great idea then I shouldn't get more partners in my business. Because as a founder of the business. I want more share in my Business. You can say a "lion's share".

But I think, with more partners my business earnings will be divided and I will get a very short amount. And I also fear that, with more partners I won't be able fulfill my business idea. Because my partners my unintentionally restrict me (Maybe).

2 Answers

0 votes
by Professional (677 points)
Okay, So it is a common saying in the business world. CEO always need to have more shares. Share is the place that gives power to the CEO. At the start when you are writing a Memorandum of Association (Document required to register your company) you can write most terms in that document. But you have to follow some market norms, if you don't follow them, no one will invest in your company.

But market norms provide you protection. Always have a bigger share from all investors if you want to control your company.

Most business experts say the CEO should have 80%+ shares at the start. So when a new investor come and you give a few % shares to your investor, it will not impact your chunk majorly.
0 votes
by Professional (598 points)
You should see the pros of getting a partner.
Your business is easy to establish and start-up costs are low. more capital is available for the business. you'll have greater borrowing capacity.
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