Need info... - SoberRecovery : Alcoholism Drug Addiction Help and Information

paula a. · 11-07-2005, 03:59 AM

Hey gang,

I am going to look for an investor for my biz.

My problem is that I don't know what is a fair offer. I don't want to get taken, and I don't want to offer too little either.

Anyone been in this position on either side that can give me an idea of what's fair for a $20,000 investment???

I am lost with all of this...

Thanks!
Paula

Dan · 11-07-2005, 04:05 AM

Wouldn't a professional appraisal of your business be a good first move?

paula a. · 11-07-2005, 04:14 AM

Yeah, it probably would be, but since I've been there such a short time I can tell you down to the penny what's there in inventory, the previous owners last two years in sales and what I've got invested in it already, which is a very small amount.

And, I am looking more to friends and family than to a stranger so I'm hoping that expense isn't really necessary.

I was thinking a 10% return on their money but someone told me I was nuts--that was too much.

I just don't know...

pedagogue · 11-07-2005, 08:33 AM

Get a valuation of the company (based on costs, revenue, growth estimates, and current assets) and then decide how $20,000 compares ot that. Consider sweat equity (if they are a blind investor, or if they will do anything in addition to writing the check). Also decide on a timeline and milestones (if you want to meet certain goals) It doesn't have to be set in stone, but it is nice to get everything down on paper so you both understand the agreement.

-p

11-07-2005, 03:59 AM	#1 (permalink)
paula a. It's a Puggle! Join Date: Apr 2004 Location: On the road to sanity Posts: 236	Need info... Hey gang, I am going to look for an investor for my biz. My problem is that I don't know what is a fair offer. I don't want to get taken, and I don't want to offer too little either. Anyone been in this position on either side that can give me an idea of what's fair for a $20,000 investment??? I am lost with all of this... Thanks! Paula __________________ Screw the other shoe!

11-07-2005, 04:14 AM	#3 (permalink)
paula a. It's a Puggle! Join Date: Apr 2004 Location: On the road to sanity Posts: 236	Yeah, it probably would be, but since I've been there such a short time I can tell you down to the penny what's there in inventory, the previous owners last two years in sales and what I've got invested in it already, which is a very small amount. And, I am looking more to friends and family than to a stranger so I'm hoping that expense isn't really necessary. I was thinking a 10% return on their money but someone told me I was nuts--that was too much. I just don't know... __________________ Screw the other shoe!

11-07-2005, 08:33 AM	#4 (permalink)
pedagogue Member Join Date: Aug 2004 Location: Anytown, USA Posts: 1,036	Get a valuation of the company (based on costs, revenue, growth estimates, and current assets) and then decide how $20,000 compares ot that. Consider sweat equity (if they are a blind investor, or if they will do anything in addition to writing the check). Also decide on a timeline and milestones (if you want to meet certain goals) It doesn't have to be set in stone, but it is nice to get everything down on paper so you both understand the agreement. -p __________________ "If you can find a path with no obstacles, it probably doesn't lead anywhere." - Frank A. Clark

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11-07-2005, 04:05 AM	#2 (permalink)
Dan Member Join Date: Apr 2004 Posts: 8,753	Wouldn't a professional appraisal of your business be a good first move?

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