I’m looking for a pizzeria to buy. I have the capital, but obviously, I can’t do all the work. I’m pretty sure I’ll need at least one manager at the start, because I can’t be there every day for 12 hours. I have a friend who is interested in getting involved, but he probably does not have much capital.
I would like to give this guy a good opportunity, so he doesn’t end up with nothing but a $25,000 job after doing a big part of the work necessary to get the business going. On the other hand, it makes no sense to make someone a full partner when I’m taking all of the financial risk and paying all the bills. If the business fails, I eat the entire loss, and he goes on his merry way. And I want to retain over 50% of the business so I won’t have to beg other stockholders to let me make business decisions.
What’s a good approach to take? I have considered various options, such as letting him buy into the business over time, at a low interest rate. Or I could put him in charge of a second operation, if the business succeeds, with a share of the profits.
I would like to give this guy a good opportunity, so he doesn’t end up with nothing but a $25,000 job after doing a big part of the work necessary to get the business going. On the other hand, it makes no sense to make someone a full partner when I’m taking all of the financial risk and paying all the bills. If the business fails, I eat the entire loss, and he goes on his merry way. And I want to retain over 50% of the business so I won’t have to beg other stockholders to let me make business decisions.
What’s a good approach to take? I have considered various options, such as letting him buy into the business over time, at a low interest rate. Or I could put him in charge of a second operation, if the business succeeds, with a share of the profits.
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