Forums: Discussions for entrepreneurs and small business.

I am currently preparing to raise funds for a small business.  I anticipate funding will come from family, friends and perhaps a few angel investors.  My question is in regard to what I can offer investors in return for their investment. 

One option I am considering is offering investors a share of the profits.  Specifically, I am considering offering investors 100% of profits until they recover their initial investment and then 40% thereafter.  Another option I`m considering is proposing to buyout the investors after approximately five years.  However, this is a business that I wish to make a career out of and do not wish to sell.  I also do not foresee it going public.  Therefore, I do not foresee an IPO, sale or merger as an exit strategy for investors.  

Thus, I am seeking recommendations or potential strategies on what I may offer investors of the family, friend and angel varieties in return for their investment.  Thank you very much in advance.

Some general comments:

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