AboutFinance Guy Expertise 1. All questions relating to finance
2. All practical aspects of mergers and acquisitions
3. Many general business questions
Experience Considerable experience in the area consisting of 25 years in both consumer and commercial finance and business management, including 15 years specializing in international Mergers and Acquisitions with over $100 billion in assets acquired
Education/Credentials Business administration undergrad
Wharton post grad in finance
Awards and Honors numerous corporate awards
Past/Present clients range from small enterprenurial companies to large multinationals
Question I am currently writing up a business plan for a small start up business. I am a massage therapist and my start up is a therapeutic massage studio. I will be seeking an angel investor or posssibly a silent partner. There is also a person who is not a professional investor that is a possibility. We will be looking for $50,000. What would be proper arrangement and repayment schedule if we acquire an investor? What would be a proper arrangement if their investment bought them a percentage of the business? I have an vague idea but in general need help in this area. Any help in this area is much appreciated.
Thanks
Barry
Answer Barry,
The scope of your question is too broad for a full discussion here.
You should talk to the investors and see what they are willing to do.
Obviously, it will be a proposition, based from their perspective.
Then, obtain an attorney and go over with that person what the benefits and potential problems are with their proposal.
Typically, an entreprenuer comes up with a proposal and goes shopping for investors.
However, if you already have investors that you know and trust,
try to work a mutually acceptable arrangement and then seek counsel to fine tune the arrangement.
