I Ching Hexagram 42 Increase: How to Split Profits for Long-Term Business Partnerships

Anyone who’s stumbled through pitfalls knows the truth about the fourth line of the Increase Hexagram. If you’re thinking of starting a business with a partner, you’ve got to study this line closely — every word comes from hard-earned lessons of people who’ve been there.

Have you ever had this experience —

You team up with a friend on a project,

At first you’re as close as can be,

Pooling your money, working side by side,

Drinking together, dreaming up the future together.

But what happens in the end?

Problems pop up before you know it.

Either someone feels they’re doing more work than the other and resents it,

Or you make money but can’t agree how to split it,

Or you lose money and start pointing fingers at each other.

By the end,

The business fails, and the friendship is gone too.

Isn’t that such a waste?

This isn’t a new problem —

People thousands of years ago dealt with the exact same thing,

And they wrote the answer right into the I Ching (Book of Changes).

The fourth line of the Increase Hexagram

Is all about this very issue.

The Line Text (Yao Ci) says: 中行，告公从。利用为依迁国。

What does that mean?

“Zhong Hang (Walking the Middle Path)” — stick to the middle way, act with integrity, stay impartial;

“Gao Gong Cong (Report and Gain Alignment)” — communicate upward to get approval and buy-in from others;

“Li Yong Wei Yi (It Furthers to Rely On This)” — you can build on this foundation;

“Qian Guo (Moving the Capital)” — relocating a country’s capital, meaning undertaking a major, foundation-shaking endeavor.

Put it all together, and the message is:

Act with integrity, stay on the middle path,

Be clear about your terms and lay out the rules plainly,

Earn everyone’s recognition and alignment,

Then you can rely on that solid base

To take on big projects and build for the long term.

What’s “moving the capital” really mean?

It’s a massive, nation-altering undertaking —

Way more serious than a business partnership.

If even moving a capital can succeed by following this principle,

Then a simple partnership is nothing by comparison.

Where Partnerships Most Often Fail

Why does the Six in the Fourth Place of the Increase Hexagram lead with “walking the middle path”?

Because partnerships

Almost always fail due to “lack of integrity.”

What counts as lack of integrity?

Three common patterns stand out.

First: you jump in blindly at the start.

You get along great, click with each other, have a few drinks, and decide to partner up —

How much each person invests, what roles each will take,

How profits will be split, how losses will be shared,

Who calls the shots, who’s accountable for what —

None of it gets spelled out clearly.

After all, you’re friends, right?

Talking about money would ruin the vibe.

But what happens?

In the end, it’s money that ruins the friendship.

Second: selfishness creeps in halfway through.

After working together for a while, people start looking out for themselves —

Some take more than their fair share, some slack off and cut corners,

Some siphon company resources for their own benefit.

Once selfishness sets in,

Trust disappears.

And when trust is gone,

The partnership is on its last legs.

Third: things turn ugly when it’s time to wrap up.

Even if everything goes smoothly at first,

When it’s time to split profits or dissolve the partnership,

Problems easily flare up.

Everyone thinks they contributed more,

Everyone thinks the other person is getting too much,

You go back and forth arguing over numbers,

And by the end, friends turn into enemies.

Wen Laoshi once put it this way —

A partnership is like a marriage:

You have to hash everything out before you sign the papers,

Don’t wait until you’re already married to regret it —

By then it’s too late.

What the Six in the Fourth Place of Increase Teaches You About Long-Lasting Partnerships

So how do you make a partnership work?

The Six in the Fourth Place of Increase gives you three keys.

First key: Walking the Middle Path — act with integrity, follow the rules.

What does integrity mean here?

Say what needs to be said face to face,

Keep your books clear and transparent,

Sign all necessary agreements carefully and thoroughly.

Don’t feel awkward about it.

Being upfront about terms first, and friendly later,

Is way better than being friendly first and turning hostile later.

Even blood brothers keep clear accounts —

Let alone business partners.

The earlier you set the rules, the better,

And the more detailed they are, the better.

Capital contributions, labor input, role division, decision-making,

Profit sharing, exit clauses —

Write every single point down clearly.

This isn’t about not trusting each other —

It’s about respecting the relationship,

And protecting everyone involved.

Second key: Report and Gain Alignment — be clear, be transparent, get everyone on board.

Bring everything out into the open,

No sneaky moves, no whispering behind people’s backs.

If you have an idea, speak up; if you have a complaint, say it out loud —

Once everything is out in the open, there’s no problem.

The worst thing you can do is bottle things up:

A little resentment today, a little more tomorrow,

Until it all blows up,

And no one can fix the mess.

Also, keep decision-making transparent.

Talk through big decisions together,

Don’t make calls on a whim by yourself.

You might think you’re doing what’s best for everyone,

But others might not see it that way.

Decisions made together,

Even if they’re not perfect,

Are decisions everyone will stand by.

Third key: It Furthers to Rely On This for Moving the Capital — build a foundation of trust before taking on big projects.

Don’t jump into huge ventures right away.

Start with small collaborations first,

See if the other person is reliable,

If your work styles mesh,

If you can stick together when problems come up.

If you work well together on small things,

Then you can gradually scale up.

If you can’t even get along on small projects,

Cut your losses early — don’t pour too much into it.

Moving a capital is a massive undertaking,

Something that shakes the very foundation of a state —

You can only do it when your base is solid.

Partnerships are the same way:

Don’t rush to go all in,

Test the waters first,

Feel out for yourself if the temperature is right.

The Ultimate Mindset for Splitting Profits in Partnerships

At the end of the day,

The core of every partnership issue is how you split the money.

Get the money split right, and everything else falls into place;

Get it wrong, and nothing else matters.

What’s the right way to split profits?

Three principles.

First: split based on value, not based on sentiment.

Don’t split everything evenly just because you’re friends.

Whoever contributes more gets more —

That’s what’s fair.

Contributions don’t have to be just money;

Skills, connections, time, energy —

All of it counts.

Figure out the value each person brings first,

Then talk about distribution.

Second: agree on terms first, then start working.

Don’t wait until you’ve already made money to talk about splitting it —

By then, people’s mindsets have already shifted.

Write everything down on paper from the very start,

Sign it into a contract,

Profits get split according to the contract,

Losses get shared according to the contract.

Clear, transparent, no room for confusion —

No one can back out of the deal.

Third: be able to share hardship *and* share success.

A lot of people can stick together through tough times,

But fall apart once they start making money.

Why?

Because when things are hard, everyone has the same goal;

When things are good, everyone starts having their own agendas.

That’s why you have to stick to the rules even more when you’re making money,

Follow what you agreed on,

Don’t let a little success go to your head,

Don’t start thinking you deserve all the credit.

A Final Word

Partnerships —

They can be really hard, or really simple.

The hard part is dealing with people’s hearts and minds;

The simple part is sticking to clear rules.

Walking the Middle Path, Report and Gain Alignment. It Furthers to Rely On This for Moving the Capital —

Act with integrity, follow the rules, be transparent,

Earn everyone’s trust and alignment,

And you can pull off any big endeavor.

So if you’re thinking of starting a partnership,

Don’t rush to raise a glass and celebrate just yet.

Sit down first and hash out all the rules clearly.

Get clear on the terms before you start,

Follow the rules while you work,

Split profits according to the rules when you succeed.

That’s the kind of partnership

That can go the distance.

The wisdom of the fourth line of the Increase Hexagram, put simply, is this: partnerships don’t last on sentiment alone — they last on rules. Lay out the rules clearly, and your relationship will actually grow stronger.

Anyone thinking of going into business with a partner should memorize this line from the fourth line of the Increase Hexagram: 中行，告公从。利用为依迁国。Set the rules first, then build the relationship — that’s how partnerships go the distance.