Investor for limited time

[manoaratefy]

Good morning,

I'm very new in business. My brand is now running but with difficulties because we don't have enough money for marketing and for human resources.

So my idea is to seek investors. But I don't want to share my business. Once I have enough money to charge back, I want the investor leaving.

Investor can be interested? Or is there any other idea to finance my startup? Thanks in advance.

 

[menetworkjadaltd]

What is your business? Do you have employees?

 

[manoaratefy]

We offer web designing and hosting services. Now, we are only two employees and we hire freelancers to do jobs when we can't handle it. Also, an outsourcing company is providing the technical support for my customers.

 

[menetworkjadaltd]

Also, an outsourcing company is providing the technical support for my customers.

Could you outsource HR and marketing too?

 

[manoaratefy]

I think we can technically outsource. But what is the benefits if we outsource?

 

[menetworkjadaltd]

I think we can technically outsource. But what is the benefits if we outsource?

Easier for you to budget for, maybe...

 

[Mr D]

If not offering part of your business what exactly are you offering investors?

 

[menetworkjadaltd]

If not offering part of your business what exactly are you offering investors?

I think he means he will offer part of the business but only for a limited time, right?!

 

[manoaratefy]

If not offering part of your business what exactly are you offering investors?

*
As menetworkjadaltd said, I will offer part of he business but only for a limited time.

 

[Mark T Jones]

Seems like what you want is a loan?

Your business type is pretty generic tbh. What do you have to excite an investor / lender?

 

[Mr D]

*
As menetworkjadaltd said, I will offer part of he business but only for a limited time.

OK part of the business only for a limited time. Not sure how that would work but OK.
You then buy them out at a set higher figure at a set date? eg invest £10k get £40k back 2 years later.

And if the business does not meet growth expectations by then?

 

[menetworkjadaltd]

I think the best way to suggest to potential investors is, have a large percentage of business until investment is repaid... Then set a period of time or until agreed interest is met, where a smaller percentage of business goes to investor.

 

[manoaratefy]

We did already loan from bank but their formula doesn't fit our needs. Investment we want is to support new charges which improve revenues in long-term (for the next years). Their loan is to return in a few months.

 

[menetworkjadaltd]

We did already loan from bank but their formula doesn't fit our needs. Investment we want is to support new charges which improve revenues in long-term (for the next years). Their loan is to return in a few months.

But remember, investors are not out to give interest free loans

 

[Mark T Jones]

We did already loan from bank but their formula doesn't fit our needs. Investment we want is to support new charges which improve revenues in long-term (for the next years). Their loan is to return in a few months.

So again, what do you have to excite investors?

 

[manoaratefy]

But remember, investors are not out to give interest free loans

So again, what do you have to excite investors?

When investors comes, he will get a percentage of the business. When I want him leave, I will purchase all his part of business. So he will get more money than he brought. But I wanna just be sure to have in control of when I can buy all his part of business.

 

[Mark T Jones]

When investors comes, he will get a percentage of the business. When I want him leave, I will purchase all his part of business. So he will get more money than he brought. But I wanna just be sure to have in control of when I can buy all his part of business.

Any why do you think that is exciting to your investor!

 

[menetworkjadaltd]

When investors comes, he will get a percentage of the business. When I want him leave, I will purchase all his part of business. So he will get more money than he brought. But I wanna just be sure to have in control of when I can buy all his part of business.

Would you want more from them then just money?! Why do you think that this would work over a loan?

 

[manoaratefy]

Any why do you think that is exciting to your investor!

Because he is investing on a company which has very big vision. As a web hosting and web designing company, we can build web and mobile application. And we have already a big plan for it: we have ideas of applications which are at this time wanted in our country (by government, big company, ...).

Would you want more from them then just money?! Why do you think that this would work over a loan?

It can works with a loan. But first payment need to be far, money to be big and long repayment period. Think kind of loan doesn't exist in my country.

Also, if I get an investor outside my country, I think he can give to the company relationship to get international customers. But I don't know if it is really needed.

 

[Mark T Jones]

Good luck.

You appear to be a company offering nothing different I. A crowded market

Your ousts have told us about what you want and what you aren't prepared to offer but absolutely nothing that would interest a professional investor or lender.

 

[Mr D]

When investors comes, he will get a percentage of the business. When I want him leave, I will purchase all his part of business. So he will get more money than he brought. But I wanna just be sure to have in control of when I can buy all his part of business.

And the investor is taking a risk with his money so will expect a payment of what he wants based on the risk. Which can be multiples of the money paid.
You being in control of when the investor gets his money? Its not very attractive to investors.
Their money tied up for possibly years longer than they want. And of course the risk that you don't make enough to buy them out. Or even the business fails.

 

[Mr D]

Because he is investing on a company which has very big vision. ... And we have already a big plan for it: we have ideas of applications which are at this time wanted in our country (by government, big company, ...)..

Which pretty much describes any business wanting investment. Lots of businesses fail to get investors.

 

[manoaratefy]

So, according to these posts, I should adjust my business to stand out ... in other words create/edit products/services to become unique in the market. Isn't it?

 

[The Byre]

Once, just once in the four years of my being a member of this forum, has anybody ever posted an investment opportunity that could have even remotely interested me.

Once!

I even called the guy - it sounded interesting, but sadly it was at the other end of the country and was the kind of business one needed to see, touch and feel. We chatted and I liked him, I liked his business plan, I liked his attitude and I liked his whole set-up. If he had been within 100 miles, I would have been at his place and possibly chasing the moths out of my cheque-book.

But we get cockamamie pitches like these two (above) almost every day! The OP wants my money, but then wants me to go away when the business is up and running! Now that's what I call an enticing prospect!

And Mr or Mrs Corbett has a professional business plan! Whoopee!



Now go away and think about what you are doing!

Ask yourselves the following question - would you go to a bank and say "Do you have any spare money and if so, could you lend me some of your spare money?"

Exactly what sort of reaction do you think you might get?

 

[SamHamdan]

No way you are gonna find an investor on temp basis in the way u described unless he wants to do you a favor, even legally, u cannot force him to sell his share later. No investor can be convinced to have a condition in a contract where he will oblige to sell his share once u request him to do so..

 

[Sam Drury]

The point about an equity investment is that the investor shares in the increasing value of the company, which they won't if they have to sell the shares back to you.

In reality, investors quite often want to exit the investment at some point and may well be willing to sell their shares to another shareholder.