As a business owner, of course you must understand how to share business profits with a profit-sharing system. The profit-sharing system is actually a mutually beneficial system and not too difficult to apply. Then, how can a business owner share profits with a profit-sharing system? The profit-sharing system itself is a form of agreement made by business actors with investors to get profit or profit. This is characterized by a cooperation contract between the two parties where if the company makes a profit, then a share of the profit will be made. But not only profits, if the business or business suffers a loss, then both parties must also bear together according to the agreed division. To share business profits with a profit-sharing system, there are several methods or schemes that you can do, including:
Profit Sharing
Profit sharing is a profit-sharing system based on the amount of profit or gain. The amount of profit or profit will be reduced by operational and production costs. So, the results obtained if using this profit sharing scheme are net profit or profit, because it has been reduced by other costs.
Gross Profit Sharing
Unlike the previous method or scheme, the gross profit sharing scheme is calculated from profits or profits that are only reduced by the cost of goods sold of a product, not including deductions from other costs such as marketing costs, taxes, administration, and others. The results obtained must also be calculated carefully, so that there is no error in determining the amount of profit or profit to be shared.
Revenue Sharing
Profit sharing with a revenue scheme is generally applicable in the banking system. It is calculated from the total revenue which has not been reduced by operating expenses and commissions. This scheme can be used as a distribution of business results of Islamic financial institutions based on a contract between the two parties. However, for companies that are already incorporated such as CV or PT, usually already have rules regarding how to share business profits contained in the articles of association. Where in these rules, it is clearly written how the profit sharing agreement is in the company’s deed of establishment. As for companies that are not yet incorporated or limited liability companies, there are three types of capital provision whose profit sharing system can be done in the following ways:
Capital Provider and Co-worker
The first profit-sharing system you can do is with both financiers and coworkers. If you are doing a joint venture with a friend, this system is very possible. For example, your friend provides capital as well as being an active coworker. But remember, that active coworkers are also employees. So he is entitled to two incomes, namely dividends from capital and salary from the results of his work. Dividends or net profits are obtained after deducting future investment and operational costs. The profit sharing is also adjusted by the percentage of capital invested at the beginning by each capital owner. The profit sharing system obtained by investors will be accumulated and given once a year. As for salaries as active coworkers, they still have to be paid once a month.
Investor in Shares
Investors who finance a business in the form of shares are often referred to as investors. Therefore, the distribution of profits in a limited liability company is usually based on how many shares the person owns. An investor also usually only provides capital and is not involved in operational activities, so the investor will get income from dividends while the business manager himself gets dividends and a monthly salary. Therefore, before starting a business, these two parties must make an agreement in advance regarding the percentage of distribution for each.
Financiers in the Form of Debt
This type of investor usually refers to himself as a creditor. What distinguishes between investors and creditors is that creditors only provide capital in the form of debt, just like when you owe well where there must be principal, interest, and maturity. So as a business actor, you only need to make repayments in accordance with the initial agreement and how much the dividend does not affect the payment of debt later. Likewise, when the business is down, creditors cannot be involved and business actors must pay debts according to maturity. Therefore, before deciding to capitalize through creditors, you must calculate in detail the amount to be borrowed, the ability of the business to earn money, and the time period for you to be able to return the borrowed capital.
KH Contact
Those are some of the ways you can do to share business profits with a profit-sharing system. Hopefully it can be useful and can be applied in your business, yes! The most important thing is, how you have to make an agreement as clearly as possible so that there are no problems in the future. For all types of capital, you and your partner must also know the development of the business, a clear time limit for profit sharing, and what the model of profit sharing is. It is undeniable that cooperative relationships in business cannot be run on the principle of trust alone, because they are prone to conflict and differences of opinion between the parties involved. Imagine if a cooperation is not bound in a clear contract, then your relationship with business partners could be damaged. Therefore, cooperative relationships with a profit-sharing system are recommended to always be outlined in a written agreement so that the legal relationship and rights and obligations are clear. Don’t know how to make a written profit-sharing agreement? Just consult to Kontrak Hukum. We can help you in making and reviewing a business profit-sharing agreement contract that suits your business cooperation needs. Contact Kontrak Hukum immediately by visiting the page https://kontrakhukum.com/kontrak/ or through the following link Ask KH. You can also send a Direct Message (DM) to our Instagram social media @kontrakhukum.
