Discussion Investor

[Mastermatt87]

I have been approached recently from a friend asking to invest in my company.

The idea is to purchase bucket trucks cranes ext.

I’m having a hard time letting a piece of my company go for equipment I can eventually get with time.

Does anyone here have investors or silent partners?

Any advice welcome.


Sent from my iPhone using Tapatalk

 

[Texas_Signmaker]

I had investor opportunities when I was first starting from an old boss and from a good friend, both I turned down because I too didn't want to give up 100% control. Very glad I did! I'd be interested in what others say.

 

[Pauly]

It's not for everyone. obviously your friend sees potential in your company.
But you also need to value your company at it stands and if his asking % for his given $ is worth it.
Also you what will be be providing apart from money. what will he bring to the table? Does he know people in places you can benefit from?

Also you never want to give 50% or more to someone. you always want at least 51% so your decision will over rule his if need be.

 

[Fred Weiss]

Not much different than a partnership. I've been in a few and the only one that came close to working was with a stranger through introduction who had resources to fill in a few gaps. We set that one up with a "suicide clause", which is that each has the right to make an offer to buy out the other at any time. The other then must either accept the offer or match the offer to buy out the first ... who is then required to accept the offer.

 

[pinkiss]

it works for some, but general idea is if you can afford it to go on your own,dont see need really,as others said your giving away part of your company, my general moto is if you cant do it yourself well im IT guy in general then you shouldnt do it.same with cash never borrow or lend what you cant afford since ruins finances and relationships.

 

[Jburns]

Getting a loan from a credit union for a truck would be cheaper than having a partner. ie 6% interest versus cut of profits?

 

[Modern Ink Signs]

I personally would stay away from that.

I’ve had people ask the same thing. No thanks. Specially a friend. Something goes wrong, there goes the friendship.

Same goes for hiring friends or family. Nope!


Have him buy the trucks and start his own company. Then sub out your work to him. If he is a good friend you should bet and good price and you both make money. Then you can concentrate on your business

 

[equippaint]

People get real weird when it comes to money. Even the ones that youve know for 100 years.
In my experience, the ones that come to you are bad news. They see a goldmine and want a piece of it. Its usually less problematic when you are the one that approaches someone else to be a silent partner to expand your business. Still should be avoided if possible.