Author Topic: What to offer an investor  (Read 1183 times)

Offline Mordyk

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What to offer an investor
« on: November 12, 2018, 02:29:44 PM »
i have a service business that i would like to take in an investor. im thinking of offering a 1.5x on investment. and he will get paid every time i get paid, starting from a year after his investment. so he should have his money back within two and half years (probably)   

is this too high? should i consider a different structure?
« Last Edit: November 12, 2018, 02:46:51 PM by Mordyk »

Offline good sam

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Re: What to offer an investor
« Reply #1 on: November 12, 2018, 04:16:59 PM »
I'm assuming you mean 50% return over all rather than a rate per annum.

I'm also assuming that the "investment" is really a loan and the investor doesn't retain any interest after it's paid back with interest.

In that case, if capital is returned in 2.5 years, average rate per annum would be approximately 20%. That's extremely high, unless the venture is extremely high risk.
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Offline metsguy

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Re: What to offer an investor
« Reply #2 on: November 12, 2018, 04:29:12 PM »
I'm assuming you mean 50% return over all rather than a rate per annum.

I'm also assuming that the "investment" is really a loan and the investor doesn't retain any interest after it's paid back with interest.

In that case, if capital is returned in 2.5 years, average rate per annum would be approximately 20%. That's extremely high, unless the venture is extremely high risk.

I agree it looks like you are trying to structure this as debt and that is likely a bit high (depends on several variables though). The best structure would really depend on what you need the capital for

Offline Mordyk

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Re: What to offer an investor
« Reply #3 on: November 12, 2018, 04:42:47 PM »
I'm assuming you mean 50% return over all rather than a rate per annum.

I'm also assuming that the "investment" is really a loan and the investor doesn't retain any interest after it's paid back with interest.

In that case, if capital is returned in 2.5 years, average rate per annum would be approximately 20%. That's extremely high, unless the venture is extremely high risk.
thats correct
I agree it looks like you are trying to structure this as debt and that is likely a bit high (depends on several variables though). The best structure would really depend on what you need the capital for
its a risk i need to take right now to give up my current job. money is solely for me to live on and being able to focus on growing this business.  Im open to see if this investor wants longer term interest.
« Last Edit: November 12, 2018, 05:13:16 PM by Mordyk »

Offline shaulyaakov

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Re: What to offer an investor
« Reply #4 on: November 12, 2018, 05:06:14 PM »
I don't think 20% interest on a loan annually is crazy for a venture.

Offline Sammyonetwo

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Re: What to offer an investor
« Reply #5 on: November 12, 2018, 05:58:29 PM »
whats the initial investment maby i want to and i can offer all your marketing 

Offline S209

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Re: What to offer an investor
« Reply #6 on: November 20, 2018, 02:21:46 PM »
thats correctits a risk i need to take right now to give up my current job. money is solely for me to live on and being able to focus on growing this business.  Im open to see if this investor wants longer term interest.

That's very high risk, unless you have a sound and viable history that you can prove works, and any investor will probably want to retain a significant interest.

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Offline Mordyk

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Re: What to offer an investor
« Reply #7 on: November 20, 2018, 02:23:15 PM »
That's very high risk, unless you have a sound and viable history that you can prove works, and any investor will probably want to retain a significant interest.

PM me if you're still looking.
I bh found one. But I do have significant track record in this field...

Offline ADG

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Re: What to offer an investor
« Reply #8 on: November 20, 2018, 04:32:43 PM »
Start a thread on how your are going to quit your job, or just do it here. Will you invite your boss to dinner, or just tell him what your really think of him/ her, or just say "your fired!"

Offline Mordyk

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Re: What to offer an investor
« Reply #9 on: November 20, 2018, 04:35:31 PM »
Start a thread on how your are going to quit your job, or just do it here. Will you invite your boss to dinner, or just tell him what your really think of him/ her, or just say "your fired!"
Mariachi band. And some tequilas for the workmates.

Offline ExGingi

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Re: What to offer an investor
« Reply #10 on: November 20, 2018, 04:40:52 PM »
I had a friend who syndicates real-estate investments in my office last week, and he told me about his business and various investors that invest with him.

He told me that the number one concern for investors is safety of their principal. He told a story of a potential investor that said to him "How are you guaranteeing my principal? Because if you're not guaranteeing my principal, I don't need you, I do an excellent job of losing my principal without your help."
I've been waiting over 5 years with bated breath for someone to say that!
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Offline ADG

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Re: What to offer an investor
« Reply #11 on: November 20, 2018, 05:31:36 PM »
In the proposition discussed up-thread. The principal is intended to be eaten, literally.

Offline Mordyk

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Re: What to offer an investor
« Reply #12 on: November 28, 2018, 02:31:16 PM »
now on to the next part ;). I need a business name. i dont want to publicize what business it is. but anyone that is creative and thinks they can help please PM me.

Thank You,

Offline etech0

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Re: What to offer an investor
« Reply #13 on: November 28, 2018, 02:50:23 PM »
Start a thread on how your are going to quit your job, or just do it here. Will you invite your boss to dinner, or just tell him what your really think of him/ her, or just say "your fired!"
Workflowy. You won't know what you're missing until you try it.

Offline S209

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Re: What to offer an investor
« Reply #14 on: November 29, 2018, 02:14:16 AM »
now on to the next part ;). I need a business name. i dont want to publicize what business it is. but anyone that is creative and thinks they can help please PM me.

Thank You,
There’s a gig in Fiverr that offers business naming for $5
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