Make Connections

Network, Get Answers, Find Members in Your Area, and More!

Forums » Startup Funding

Somone wants to invest in my idea

    • 1 posts
    September 14, 2012 10:28 AM EDT

    I made a bussines plan which I presented to a couple of friends only for opinions. One of them liked the plan enough to express interest in providing the money needed to get the business operating. Im more than eager to make this work since all I currently have is the idea and getting a loan is rather difficult( if not impossible) because of my age.

     

    So my question is, should I split up revenue with him till the loan is payed off? Should we work a percentage out of revenue split and keep him in the business long term? 

     

    I really dont know how to work this out, this is my first time dealing with someone investing on one of my ideas, really would appreciate some help from someone with more experience

    • 2 posts
    August 15, 2014 1:08 AM EDT
    If he has money I would defiantly keep him in the business in the longrun..he could be your line of credit, but have him as in investor not a partner. A partner owns a portion of the business whereas an investor is simply putting money into the business. For now I would just pay back the loan and then discuss longterm relationships later.