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Opening a food truck with a friend. I'm solely paying for everything. What would be a fair percentage of ownership?
r/Entrepreneur
6/27/2025
SAAS TOOLS
| SaaS | URL | Category | Features/Notes |
|---|---|---|---|
| [No SaaS tools mentioned] | N/A | N/A | N/A |
USER NEEDS
Pain Points:
- Financial risk imbalance: Investor bears all financial risk while operator risks only time
- Potential for partnership conflicts due to undefined roles and equity splits
- Lack of clarity on profit distribution, salary, and exit strategies
- Fear of operator walking away without consequences, leaving investor with losses
- Difficulty in valuing sweat equity vs. capital investment
Problems to Solve:
- Determining fair ownership percentage when one party provides capital and the other provides labor/IP
- Structuring agreements to protect investor's capital while incentivizing operator
- Establishing mechanisms for profit sharing, salary, and loan repayment
- Creating contingency plans for business failure or partner exit
Potential Solutions:
- Legal contracts defining equity, responsibilities, and exit clauses
- Loan structure with interest repayment instead of equity
- Tiered ownership (e.g., 70/30 until capital repaid, then 50/50)
- Salary for operator + profit sharing
- Sweat equity valuation based on market salary equivalents
GROWTH FACTORS
Effective Strategies:
- Structuring partnerships with clear equity splits based on risk/reward (e.g., 70/30 favoring capital investor)
- Implementing waterfall profit-sharing models to prioritize investor repayment
- Using sweat equity conversions to incentivize operational partners
Marketing & Acquisition:
- Leveraging personal networks for initial client acquisition (as seen in consulting advice)
- Building reputation through free value-first outreach (e.g., Reddit/FB advice)
Monetization & Product:
- Risk-based pricing for investments (e.g., demanding 16-18% ROI to outperform index funds)
- Asset-backed financing (e.g., leasing trucks to retain ownership)
- Dynamic equity adjustments based on performance milestones
User Engagement:
- Community-driven advice platforms (e.g., Reddit) for peer validation
- Transparency in partnership terms to build trust