I'm the commercial manager of a small start up grain company here in the Texas Panhandle where we are in our second year of operation. Last year we lost some money as expected because we weren't able to get licensed until right before corn harvest and most of the larger farmers already had contracts with the other grain companies. The sell side was rough too because those customers also had contracts with the other companies as well. We got through it though with minimal losses and did a little bit better than expected.
This year, we are set to breakeven if not make a small profit since I was able to put on some good contracts on both the buy and sell side with all of our commodities. Next year should be even better as we gain the producer's and consumer's trust which will open up more opportunities.
Yesterday, the main owner of the company offered me two options. He said I could either have 10% equity in the company and become a partner or 10% of all profits each year. I'm leaning more towards the 10% equity in the company because I don't plan on leaving anytime soon and I think there's more upside potential. There's more risk involved but that doesn't bother me. I think the profit share would be better if I needed the cash but, I'm fine where I'm at right now when it comes to that.
I'm looking for opinions/advice on what you all would do in this case.
This year, we are set to breakeven if not make a small profit since I was able to put on some good contracts on both the buy and sell side with all of our commodities. Next year should be even better as we gain the producer's and consumer's trust which will open up more opportunities.
Yesterday, the main owner of the company offered me two options. He said I could either have 10% equity in the company and become a partner or 10% of all profits each year. I'm leaning more towards the 10% equity in the company because I don't plan on leaving anytime soon and I think there's more upside potential. There's more risk involved but that doesn't bother me. I think the profit share would be better if I needed the cash but, I'm fine where I'm at right now when it comes to that.
I'm looking for opinions/advice on what you all would do in this case.