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Entrepreneur reply to Business review

Not only have I read your review, I had a meeting with you to fully
understand your worries which made me finally have this answer for you.
Firstly I will like to apologies it took me this long to get back to you. This is
because during the business design, I was all in charge but when it started to
run, if I am to take any decisions I have to talk it over with my investors, to
the very least give them the respect they deserve.

Meeting you made me realize a few things.


If you were the first investor, I am sure I would have totally given you a
pen and a piece of paper to do the designing and do the business analysis for
me. How ever it was not only my decision this time any more. something
might be perfect now but given enough time, it become absolute (needs
updates). I had to meet investors individually like I did you to be able to get
back to you with the following points

1). The uncertainty. I know this will be hard for you to get but I will explain
never the less. You see, this business is not just for a particular group of
people, but for all types of people and religious believe. For Muslims for
example are more concern of how the got the money rather than how much
they got. So for a way to satisfy everyone, I say that the profit of the investor
never decrease but there will always be a profit as long as even one
employee(partner responsible for generating profit) is generating profit. I
have taken precaution of eliminating a scenario where employee are not
generating profit, by firstly implementing branches of the business in
different regions respective of how small the capital is currently.

2). Permit me use your very example to explain this point.

Investor Capital + entrepreneur Profit = 100% of Business capital


Total investor profit = 37.5%
Entrepreneur profit = 25%Total employee profit = 25%
Management profit = 12.5%
Example: If we have 3 investors with the following capital:
A with capital 50,000
B with capital 100,000
C with capital 200,000
If a profit of 100,000 is made for the first month and the business has 10
employees
x1=20000
x2=20000
x3=20000
x4=20000
x5=20000

Here is how the profit is shared;


Entrepreneur profit: 25,000f
Investor A profit: 5,357f
Investor B profit: 10,714f
Investor C profit: 21,429f
Management profit: 12,500f
x1=5000
x2=5000
x3=5000
x4=5000
x5=5000
the reasons for this data is this, right now no employee has a capital of over
70,000, and all employee form start have the same amount to capital they run
on.
Irrespective as management may seemingly have much money as profit,
management spends it all to ensure that mistakes do not occur to result in loss
of capital and also increase in profit. I know from theoretical point of view,
you might not understand this. Management receives 12500 but when
balanced out management has nothing. You mention that management was
the first to run. That is current but that money management ran with was
borrowed by management to pay latter.

The business or Entrepreneur profit as you call it, there is one key ingredient
you have to know, the only way I entrepreneur appreciate this business is if it
is the way it is, if any portion of profit changes the fire in me might burn out
hence there will be less output as profit which you so much desire. So here is
the statement I make with this regard.
I work on the behave of investors, I do not work for investors.

However I was willing to compromise the 15% put as loss and 10% to
entrepreneur but this time entrepreneur might withdraw his profit form the
business and guess what, my investors advice me against that. They said yes
the very fact that you are threaten by the profit the business makes means
deep down you are also very sure the business will succeed. For them first
things first, let the business start making the millions you are so worried
about, write now, the business is in its best form(this is how this statement
came about) and needs my full conviction and all the motivation.

Conclusion,
The truth is I did bring emotions into business. Maybe it is because of
my affection towards you that I wanted you to be part of history I am about to
create. But you have every kind of problem and I am still in the distribution
phase stage 5, what will happen when it gets to production phase or
processing phase where everything becomes complete?
You questioned every decision I have ever made with regards to this, I mean
all of it , I have adjusted it and at the very end of our meeting you still had a
problem with employee being partners which means they cash out all their
profit while other partners profit went back to grow business.

Normally as entrepreneur and with respect to terms of agreement, I activate


option (termination of an investor who has not yet invested all his agreed
amount to invest). But in your case I will leave that decision for you to make.
So here is my question to you,

what do you want me to do now that nothing has been updated in my


business flow?

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