Report question
Mr. Larson is very good at answering questions. He answered one for me having the things he said things to think about like his answer to you. I can say from my personal experience for my own venture. Finding out what amount to give a potential investor is on a case by case basis and very personal to your business. It can take weeks and months of thinking, researching and asking around what to do. You want to give the potential investor a good deal so they will feel they invested in something worthwhile if it works out. Depending on your exit strategy and the amount your asking for vs. how much you business can make. Is very important. So it's good to have your facts together. Good luck in getting to your final decision in how much to offer for your venture.
Report Liz's answer
Thanks for the advice guys. I really appreciate it. I've reached an all around number that is more than reasonable.
Report LeMichael's answer
Your equity arrangements as well as many other important factors will evolve by developing a business plan and an operating agreement as a team. The share of ownership will be a natural fallout.
Develop a business plan together. * https://www.bplans.com/sample_business_plans.php *** Then develop the operating agreement, which is a separate document, not controlled or required by the state or the federal government, but very important to your company. It should be a simple, straightforward document you and your prospective partner(s) can draft yourselves, addressing such matters as % of ownership, how revenue will be distributed and other general matters, as well as who can commit the company in the form of credit cards, who signs checks on the company account and other administrative matters. Buying out a partner or an investor should also be covered as well.