Investment What Is the Difference Between A Working Partner And An Investor?

Good-Guy

VIP Contributor
Investing is considered as one of the most important things because majority of the businesses are dependent on investments. Many people believe that when it comes to investments, money is often involved. However, I am sure that money is not the only kind of investment when it comes to businesses. For example, when you work as a freelancer, you invest your time and efforts in order to manufacture the product (i.e. Content) for client. So investment is a pretty wide and broad kind of thing. I believe that there are various kinds of investment. Financial investments usually involve investment of capital. However, when it comes to business, many people often work as working partner.

They do not have capital to invest in the business. However, they are quite talented individuals who have a good amount of experience and the financial investor depends on these "working partners" in the business to generate profits. Usually the profits in the businesses are distributed at an equal ration of investments in the business. However, these working partners might be salaried individuals in the organizations and they might also have a share in the profits. So are working partner kind of investors in the organization?
 

Kendy

Verified member
The difference between a working partner and an investor is enormous. As a working partner, it means you will have the best interest of the business organisation at heart and you are also part and parcel of the decision-making processes. It also means that you share the same risk, the same funding, the same investment, the same profit and the same losses as the case may be. Then, for an investor, he is more like a third-party that does not necessarily stress himself about the progress of the business organisation. His own duty majorly is to provide funding for the business. As a business partner, it means you have a say in the business, you have to share and align with the same vision and mission of the organization.

Working partnership is a venture that involves two or more people who come together with an agreement of the same idea and goals. An investor would not share in whatever risks the business venture encounters. This is the more reason people like to become investors rather than shareholders because it is less risky. It is just like depositing your money in a public bank, paraventure if there is a fire outbreak in the bank, your funds are still secured and accessible.
 

Bookwormlux

Valued Contributor
A working partner is somebody who has gone into agreement with you and has the same vision and goals about the business that you two are getting involved in . It is more like a team where the both of you try to come up with ideas everyday and make sure that the business continues to grow and expand beyond certain levels .

A working partner is always there with you in the business so as to make sure that you both are doing what would contribute in taking the business to the top, and not just sitting down to complain about the situation of things around .

On the contrary aspect , someone who is called an investor is not necessarily a working partner , but it is usually somebody who has got I believe in you and hopes that you would be able to make some profit from the money he is giving you to go about your business activities . After everything , you now have a responsibility of getting back to the person and giving him some returns out of the money he paid at the beginning , which is determined by the nature of agreement you went into.
 
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