What is the percentage of ownership that you should have of a new business?

[BrolySSJ]

When you start a new business, one of the hardest things to achieve in the beginning is the capital that you need to put into the business in order to get it off the ground. Generally when it comes to Capital you can be funded by one of three ways. The first way is to fund the business yourself. The second way is to take out a loan from the bank and then fund the business. And lastly you could possibly look at getting investors into the business. If you get investors into your business then you are essentially selling shares to your business, and they will have a specific amount of say in the operations of the business as well unless they are considered to be silent investors.

What do you think is a good percentage of shares that you should own in your own business and that you should sell out? I think that you should own at least 51% of your business if you are able to afford it because this will allow you to still be able to make decisions as to majority shareholder.

 

[Taimoor Jutt]

Yes absolutely true. For new business at start up you should try put your maximum portion. If you have too much money to invest for your business that you can put 100% then you should to do your solo business . If you can not manage to do so then atleast put more than 50% of capital.

 

[Rashid]

Yes explained clearly how to start a business and how much your capital percentage belong to you.
It depends as if you put little in it you will not too much authority to take decisions and to take much profit. Start your business by Maximum portion of capital should belong you. Put at least 50% or so to get hold on your business.

 

[kayode10]

In my own opinion I think 80% is ok, so as to have full control over your business. When you have legs and that all other have lion shares with you, anyway they will compete with you you know that you have full control over the business and you might get kicked out as a result. A close example of this is when Steve Job was kicked out of Apple.

 

[Kayzzy3]

When you start a new business, one of the hardest things to achieve in the beginning is the capital that you need to put into the business in order to get it off the ground. Generally when it comes to Capital you can be funded by one of three ways. The first way is to fund the business yourself. The second way is to take out a loan from the bank and then fund the business. And lastly you could possibly look at getting investors into the business. If you get investors into your business then you are essentially selling shares to your business, and they will have a specific amount of say in the operations of the business as well unless they are considered to be silent investors.

What do you think is a good percentage of shares that you should own in your own business and that you should sell out? I think that you should own at least 51% of your business if you are able to afford it because this will allow you to still be able to make decisions as to majority shareholder.

Percentage of stake you own in a business is determined by majorly the amount you invest in the total assets of the business and the how much you put in the daily operation of the business.

Another factor in your level of involment in running the business.

For me I like being a major stakeholder in big businesses.

 

[LaylaG]

we might not be able to give you accurate answer of the question you have just asked because the percentage you should get as the owner of the business depends on a lot of things and sometimes the question we might give you may not be the same compared to the type of business you are doing.

Post automatically merged: Jan 26, 2021

we might not be able to give you accurate answer of the question you have just asked because the percentage you should get as the owner of the business depends on a lot of things and sometimes the question we might give you may not be the same compared to the type of business you are doing.

 

[Patrik]

Oh well, since it's your own, i believe that it is 100% for you, you own it comoletely, this percentage changes once you are in a partnership, and the profit depends on what you or the partner are contributing on

 

[Henrywrites]

When you start a new business, one of the hardest things to achieve in the beginning is the capital that you need to put into the business in order to get it off the ground. Generally when it comes to Capital you can be funded by one of three ways. The first way is to fund the business yourself. The second way is to take out a loan from the bank and then fund the business. And lastly you could possibly look at getting investors into the business. If you get investors into your business then you are essentially selling shares to your business, and they will have a specific amount of say in the operations of the business as well unless they are considered to be silent investors.

What do you think is a good percentage of shares that you should own in your own business and that you should sell out? I think that you should own at least 51% of your business if you are able to afford it because this will allow you to still be able to make decisions as to majority shareholder.

If you are letting a new investor in, then even a stake of less than 30% is quite okay as long as you have a cleared stated rule that is going to guide you through the run of such business. If an investor is going to invest, let's say $100m into the business, then you should worry less about your stake in the business and more on other things.

 

[Thosynho]

When you start a new business, one of the hardest things to achieve in the beginning is the capital that you need to put into the business in order to get it off the ground. Generally when it comes to Capital you can be funded by one of three ways. The first way is to fund the business yourself. The second way is to take out a loan from the bank and then fund the business. And lastly you could possibly look at getting investors into the business. If you get investors into your business then you are essentially selling shares to your business, and they will have a specific amount of say in the operations of the business as well unless they are considered to be silent investors.

What do you think is a good percentage of shares that you should own in your own business and that you should sell out? I think that you should own at least 51% of your business if you are able to afford it because this will allow you to still be able to make decisions as to majority shareholder.

In my view I think it is better to a larger percentage in the investment. This is because it gives you if you should the opportunity to be in charge and so every other people can try to be behind you. This really work trust me.

 

[BrolySSJ]

In my own opinion I think 80% is ok, so as to have full control over your business. When you have legs and that all other have lion shares with you, anyway they will compete with you you know that you have full control over the business and you might get kicked out as a result. A close example of this is when Steve Job was kicked out of Apple.

Having 80% of the shares can sometimes be difficult in the beginning because you may not have the capital in order to try and get that. So in those cases if you want to be able to achieve that you would probably have to have that capital or take out a loan that will cover the 80% of the capital required, and then from there you will be able to have majority control.

 

[Adebayonle7]

Great explanations! Of course you are right on point! In a case where you have others support you to build the business, it is not your business anymore. You have little or no say if care is not taken. Just as you advised, it better to at least have or own up to 50% of the company's shares. With this, it is certain that none of the investors can have up to 50% because that will mean having equal right and say and decision on the business. It is better to just be patient and have the needed capital before venturing or creating a business.

 

[BrolySSJ]

Great explanations! Of course you are right on point! In a case where you have others support you to build the business, it is not your business anymore. You have little or no say if care is not taken. Just as you advised, it better to at least have or own up to 50% of the company's shares. With this, it is certain that none of the investors can have up to 50% because that will mean having equal right and say and decision on the business. It is better to just be patient and have the needed capital before venturing or creating a business.

Having equal right and say in a business can sometimes cause a lot of conflict between the parties that are invested into the business. For example if there are more than one investor into the business or holding the same amount of shares, then if their ideas conflict there will be a lot of uncertainty about which one to actually implement. This is why it is very good to have a 50% majority shares that you have in order to avoid such conflict.

 

[Adexgrace]

Generally one percentage in business should be on a very high side. There are some investors that show up for meetings and also are involved in general meetings when needed. and some are silent investors. But nevertheless both needs high percentage in the business.

 

[MarieArie]

Indeed, social media is one of the best ways to connect with people who already love your brand. It’s also important for reaching those who haven’t heard of your business yet. Running an active online community or forum isn’t easy. The natural tendency for forums is to start strong when everyone is new and excited but to dwindle over time as people lose interest and move on.

 

[Donolatunji]

The founders should end up with about 50% of the company, total. Each of the next five layers should end up with about 10% of the company, split equally among everyone in the layer. Example: Two founders start the company.
Any shareholder has a percentage ownership in the company, determined by dividing the number of shares they own by the number of outstanding shares. ... Typically, this number is presented in percent or basis points (hundredths of a percent).

 

[Quert]

Well that depends on how much do you invest on building the business, if you are just on your own then you have the full share. if its partnership then you go 50-50 in order to have equal share each profit you gain. This might be change due to other factors that your business consist of such as if you all have insurance to take.

 

[Sammyesx]

For someone hoping to start a new business, it is advisable to have a least 60% of your capital. Investors should not have more than 40% of your business that way it will easier for you to still run the business according to your initial plans.

 

[Ltherman]

Percentage of ownership will be greatly dependent on the kind of company you're looking at creating. If its a limited liability company then ownership will be as per shares which will culminate to percentage. As a new owner there are different class of shares one can take advantage of.

 

[Abibatabosede]

There are some business where divided ownership is not advisable. In establishing a school, you have 100% of the financing and bear the risk but you have to share responsibility among the employees to achieve success.

 

[Kehinde]

Angel investors typically want from 20 to 25 percent return on the money they invest in your company. Venture capitalists may take even more; if the product is still in development, for example, an investor may want 40 percent of the business to compensate for the high risk it is taking.