Investor Help (but not investment from you guy's)

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T

Tam

  • #1
    A friend wants to invest £15k in a new business venture and maybe help
    out one day per week, for this they would like (assuming the business
    is doing well) a guaranteed annual return, they don't want it based on
    percentages. I am having trouble on what I should offer them, any ideas
    on what I should offer and over how many years?

    Tam
     
    P

    profitxchange

  • #2
    I would imagine they would expect something a lot better than a conventional loan interest - why not ask them?

    They must have some expectation.

    If they are making an added value contribution to the business that could be classed as a wage/salary - whats the going rate for an emplyee of their calibre?

    Perhaps even keep the two elements separate.
     
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    T

    Tam

  • #3
    I would imagine they would expect something a lot better than a
    conventional loan interest - why not ask them?
    Click to expand...
    Dilemma: They don't want to ask for too much and I don't want offer too little :?

    I was thinking of maybe £25/30k over 5/6 years for their investment
    and a separate wage/salary for their work?

    Does this sound fair?

    Tam
     
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    P

    profitxchange

  • #4
    I would say that would be very acceptable

    You do not have to cast it in stone

    Allow for an annual review?

    I might even start a bit lower don't cripple the business with too higher outgoings. you can always give them a bonus if all is well.

    Good luck
     
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