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by sojsurf 1203 days ago
If you split profit equally, you should also split investment and risk equally. Many folks who start a small business owners put their home and other assets on the line to fund their company.

Most employees appreciate that they are getting paid whether or not the location performs well. They don't get an equal share of the profit, but they also don't pay an equal share to cover losses if the business is not profitable for a season. If a Starbucks locations were closed for a month during peak Covid, would the employees be happy to (a) not get paid, but also happy to (b) still help carry the cost of the lease, utilities and other operating expenses?

If I start a business and my employees are willing to put their name on the loan (backed by their homes as collateral), then this is a different discussion.