Starting Up - How much of a % should I give to Investor?

[locoarts]

Hi there,

Ok I was wondering if there is a standard percentage number per $10,000? Or whatever?

I might have a investor or two that basically wanted to get into the restaurant business. Nothing more then investing, they wouldn’t have anything else to do with it, not even the concept. Its just a money deal. I’m going to be running it, its really my baby.

2 Questions:

1a) If someone invested $30,000 - How much of a percentage should I give up?

1b) If someone invested $100,000 - How much of a percentage should I give up?

1. Any Investor Stories/Horror Stories, things you wished you put in your contract? Anything that might help me with wording or not giving up?

 

[GT1]

I hope you are talking about a % of profits and not sales. I would think they would want it to be more attractive than they would get by having their money elsewhere, but you may lose money at times and can’t afford to be paying out percentages when you have some rough patches.

 

[HannahBananasOnline]

OK Then,
If it’s not family at this time of our economy, I suggest not doing it. If it’s family, don’t make them a partner and make sure they don’t expect a return for at least 2 maybe 3 years. You need deep pockets, especially these days to market market market. Look at the posts here about social sites, door-hangers, direct mailings and read to sticky’s up top about new business start up. Everything you need has already been posted, you just need to nose around. Personally, I struggled and spent twice as much as I had budgeted. If I didn’t have bottomless pockets, I would a been killed a long time ago. If you have time and a job, maybe take a BA in business or get a job at an independent pizza shop first. Know absolutely everything you need to know, make a business plan, and then maybe consider asking for money. I got the bulk of my money from the small business association and my operating capitol from a family member who is retired and has plenty of cash. Just my two cents, back to work only on my 11th hour today.