Forums: Discussions for entrepreneurs and small business.

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Business Growth Masters, LLC -
Capital Catalysts for Entrepreneurs
Home of the Scalable Business Plan and QuikStart Capital Programs
http://www.bizgrowthmasters.com
info@bizgrowthmasters.com

There are a couple of ways to do this.

First, you can map out the terms of this investment in a simple term sheet. Since you are talking about an investment, I’m assuming that you will be selling shares to the investors, which you can further define in a stock purchase agreement.

If it’s in fact an equity-linked or debt deal, you can define the terms of your agreement in a simple promissory note.

While these are rather simple procedures and the required documents are widely available on the Internet, you’d probably still be well advised to get a seasoned financial professional or attorney to help you with this. Corporate finance in general is no playing ground for the inexperienced. Having said that, bear in mind that in most cases issues arise when either the venture takes off (because everybody thinks they deserve more) or the venture fails (because everybody thinks they got too much – liability that is). The way I look at it is that you’re now laying a solid foundation for the future.

If you need assistance with this, please feel free to send me a PM and I’ll try to give you a few more pointers.

I hope this helps.


Mark



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Jackson Steiner
http://www.JacksonSteiner.com

Advanced Document Design for entrepreneurs, intermediaries, and the financial services industry.
http://www.Publications.FastVentures.com

You may need to prepare what we call a PPM, a Private Placement Memorandum, where terms and conditions are set forth regarding the specific business opportunity.  Also, if you state has specific tax credit initiatives for investors you may want to include this in the PPM, as well as advise your investor.  Alot of times to get angel investors to look at private opportunities in your state, a taxing entity/governing agency will provide certain tax initiatives.  It is a "win-win" for you, as well as the investor.   When all is said and done, you definitely need to have a contractual agreement between you the interested party as to what expectations are, terms in the term sheet, etc.