Friday, January 23, 2009

Im in a start-up with one partner. What percent to give to a new partner? -

Hello. I need some help. I have a partner and we own a new start-up business. There are two investors who wants to help us with money (we think at that moment they are not needed a lot of money), services (about low, marketing and finances) and partnership. The company will remain ours, but we don t know how much percents to give them and which one of them to get. They have their own businesses and are big in their field. They are not going to spend a lot of time for us, but will do it when needed. They are angel investors . We and they think that we have a great idea with a big potential, but we are really in the early start-up.

Pl. be very clear about what you do write a proper agreement before you take any finance.Be very specific in areas of co-operation if the investors are not spending time to help in business then a fixed ROR on loan amount/Royalty on sales can be offered to investing partners but try not to give any share holding in your biz.Why have you not tried banks?Banks offer better rates but ask for sales turnover plans for future with colateral G ntees in form assets eg.bldg./bonds etc.The investing partners must be identified clearly taken as sleeping partners only.But once again, I firmly advise to do a proper agreement in conusltation with your CA/Lawyer.

>>>

 

Home Posts RSS Comments RSS