the 60:40 company structure sustainable or too generous?
I run a consulting company where the core value comes from our talent. to keep balance and growth sustainable, I’ve thinking on working with a 60:40 model:
60% goes back into the business where this includes profit-sharing for division directors (15–20%) who manage clients, day-to-day operations, and program development which the 40% remaining covers freelancers, marketing, sales.
40% becomes the company pool goes to shareholder distribution where this 40% is split into 30:10 where 100% of 10% is reserved for key player hires to strengthen the team with vesting on 2 year cliff.
This approach ensures directors are motivated, the business reinvests in growth, and shareholders still see returns without collapsing under the weight of over-distribution.
My only concern is because of 60–70% reinvestment back to operations too high? I want to take company profit too, not just subsidize operations.
Nobis aut eum atque est ea et. In pariatur in dicta ea fugit reprehenderit. Itaque voluptas quo aut corporis id ut. Ratione culpa labore laboriosam adipisci.
Quia eaque vel unde blanditiis eligendi. Quos aspernatur et rerum et ipsa odio iste nobis. Placeat nemo quia dolor qui eligendi. Fuga veniam assumenda sint impedit deserunt nesciunt eius.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...