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Investment in new business

  • 01-05-2024 9:39am
    #1
    [Deleted User]
    Posts: 0 ✭


    Hi all,

    I am a long time working but new to new business owner ship.

    Has anyone any experience in people investing into a business, type of return or ownership?

    For ease, I have a business idea which will need around 250k to get going. My intention is to quit my own job to focus on the business. My BP shows me to be in profit by end year 2 with a good growth potential.

    I have a chap looking to invest but not sure how ownership is broken down, he won't really be involved in the day to day and ideally will be looking to double his money back by end of year 3



Comments

  • #2
    Gloomtastic!
    Registered Users, Registered Users 2 Posts: 8,826 ✭✭✭Gloomtastic!


    If they haven’t dictated terms then I suggest registering on ChatGPT.com and ask it for advice. You will be pleasantly surprised.



  • #3
    kedito
    Registered Users, Registered Users 2 Posts: 5 ✭kedito


    If you're looking for a simple explanation:

    If someone is investing $250k in your business, they’ll likely want part ownership. The amount they get depends on how much you think the business is worth now and in the future. If they’re not involved in daily operations, you can agree to give them a percentage based on the investment, or a fixed return over time.

    You can offer them equity, where they own a part of the company, or you can treat it like a loan, paying them back over time with interest. If they expect to double their money in 3 years, you’ll need to plan how to give them that return—either through profits or by buying back their shares.

    Make sure you both agree on how things will work and put everything in writing, so there are no surprises later. Simple.



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