What is a fair amount for Investors to make?

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What is a fair amount for Investors to make?

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Dougster

posts: 70

Jun 09, 2008 10:50 AM ET Quote Report Abuse

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Aloha from Indy everyone.

Here is a question that I have and perhaps others do as well.

I am trying to secure some funding from Investors and I want to obviously be fair and treated fairly as well.

What is the going rate for Investors and what is a good insentive for them for their ROI?

I am not really wanting to go public at this rate so stock isn`t an option, I would want to provide a good "cash back program"

I would imagine a % of the business could be an option as well.

Is there anywhere I could research this topic or is it somewhere here I haven`t yet found?

Thanks much for any info.

Doug

-------------------------

Owner/Inventor:
"OFF THE WALL" Extreme Ping Pong
The next great "BIG IDEA"
Seeking Investors/Partners www.InstantVideoMemories.vpweb.com

MNGrillGuy

posts: 236

Jun 09, 2008 2:29 PM ET Quote Report Abuse

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Investors will want a piece of the company which they feel adequately compensates them for the risk. 50-80% yr/yr on their investment would be a good place to start.

-------------------------

Travis Tschepen
Hibachi Bros. LLC

--My goal in life is to be as good of a person my dog already thinks I am.--

Dougster

posts: 70

Jun 09, 2008 3:06 PM ET Quote Report Abuse

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Thanks for the imput Travis and love your goal there!

-------------------------

Owner/Inventor:
"OFF THE WALL" Extreme Ping Pong
The next great "BIG IDEA"
Seeking Investors/Partners www.InstantVideoMemories.vpweb.com

robertj

posts: 1458

Jun 09, 2008 6:28 PM ET Quote Report Abuse

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Investors will want a piece of the company which they feel adequately compensates them for the risk. 50-80% yr/yr on their investment would be a good place to start.

Travis,

I gather from your comment that you have been hanging out with VC`s who like to travel in the fast lane. Like the one who told me the other day that they only look at situations where they can expect to get 30 X on their investment.

That`s pretty steep for most of us mere mortals.

-------------------------

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

jgehawk100

posts: 2

Jun 09, 2008 10:55 PM ET Quote Report Abuse

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I have 2 companies going in industries where I consider myself an expert...I gave up more than half to get them funded, operated and backed with partners that could bring in business, etc.

I`m only 35% of my own soul in one.
I`m 40% of my "baby" in the other.

I guess that`s the price you pay to be in business. It sure beats having 100% of the work in the old cubicle and 0% of ownership...
- j

Dougster

posts: 70

Jun 09, 2008 11:14 PM ET Quote Report Abuse

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Interesting J,
Do you have a working role in them at all?

If so to what degree?

Thanks for any imput.

-------------------------

Owner/Inventor:
"OFF THE WALL" Extreme Ping Pong
The next great "BIG IDEA"
Seeking Investors/Partners www.InstantVideoMemories.vpweb.com

robertj

posts: 1458

Jun 10, 2008 11:36 AM ET Quote Report Abuse

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Congratulations on getting the funding - although the percentages seem high for first rounds (if that is the case). Good luck with them both.

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