Basically there are 2 ways to go.
1. The simple (yet ultimately expensive way) is to "negotiate" a deal based upon what you and the investor can agree upon.
2. The more complex way is to establish a valuation for the company and build an investment offer from there.
Generally, the second approach requires some professional assistance or previous experience in the process.
You see the dollars is a good indicator to tell you when to buy and when not to buy.
You can play with the dollars and make more profit .There is always a place to buy because when one go up the other go low.Import Export it is a good example.
Generally, the first approach involves one of you making a "first" offer - the other party counters and negotiations ensue. If you pick a $ amount that you are unwilling to change - then the result would be a "take it or leave it" situation. If you are only going to have one investor - this approach might be OK. Even so it is frequently challenging to get to agreement with both parties feeling they have been fairly treated.
If you want to discuss specifics- contact me privately.
Selling stock for a new business is pretty difficult.
Selling stock is almost like taking on partners. In being incorporated, any stock holders that you have are part of your board of directors in essence and have a say in the operation of your business. My personal oppinion is to try to find angel investors before selling stock, plus, the longer you go before selling stock and the more profit you make gives better investor odds. The more your net worth, the more you can charge per stock and the more appealing your stock will be to the investor.
With all respect to all the folks who are tyring to help you by offering their input - much of which is opinion and/or myth.
You need professional advice on this issue. There are a number of things that need to be taken into consideration -including the best way to consumate your deal. An improperly done deal has long term effects that can create headaches well into the future.
Yes, as professional business advisors - this is the type of service we provide - but if that is an issue, I`ll be happy to give you the names of other folks who can and will help you. Just send me a private message.