Good day all,
Please I need your Judgement and advice on this, cuz I know that There are entrepreneurs, business strategists and educated people on Nairaland

I will just go straight to the point cuz I’m not too good at telling stories.

Billy and Sam decided to setup a business as partners.

Out of the capital (100%) required to startup the business in their own little way after making all the necessary enquiries. Billy agreed to bring 80% of the capital while Sam brought 20% of the capital (cuz he doesn’t really have much at he moment according to him).

Since Billy is in his final year in school, he won’t be around for a very short period, Sam is to manage the business while Billy will assist him. To this end, they had an initial agreement that profits should be shared between them as 59% : 41%. (Billy gets 59% while Sam gets 41%)

While planning the business, Sam made projections that the beginning is going to be very difficult cuz they may not begin to see profits immediately and the capital will not be enough to cover the daily, weekly and monthly expenses/cost of operation of the business. That at some point, they will need to use their personal money or resources to keep the business going, till it is strong enough to carry itself.

Billy then said, that if it is going be so, the expenses should be handled by them in the ratio at which profit is shared which is 59% : 41% in any case the business cannot handle its expenses or cost of operation.

Sam disagreed and said, It’s not going to be convenient for him, that such expenses should be Handled by them in the ratio at which capital was brought and profits shared equally.
That is Sam is saying that Capital should be 80:20, Expenses 80:20, Cost of Operation 80:20 and Profits 50:50 because of his inputs.

Billy disagreed that it won’t be convenient for him to bring 80% of the capital, expenses and cost of operation but profit is 50:50. Pointing out that the reason Sam is running the show is because Himself (Billy) will not always be around for a very short period and he will also assist Sam in managing the business.

But Sam refused and threatened to back out of the whole deal. Billy then said if Sam wants it his way he should bring 50% of the capital and Expenses and Himself(Billy) will also be available for equal inputs in the business.

Right now this is an issue

Please Nairalanders please judge and give advice

NB: Billy has the capability to run the whole show himself.

Regards

Personally, I think they should part ways. The business hasn't started and they are already trying to outsmart each other. In Nigeria, most partnerships don't end well, for obvious reasons.