How Do You Make A Deal With Investors?
- Thread starter MadMan
- Start date
You should know a lot about businesses and the way they operate before even entertaining the idea of soliciting securities. it also wouldn't hurt to pick up a few books on the subject that will explain how to structure companies and investment memorandums, and profit sharing, taxation, fringes and benefits and all other aspects of producing.
In short, you have a couple of things to offer - money, and percentage of profits. Whole books could be written about either one, but basically every investor will want a percentage of the company or product's profits, and some (usually the first or the largest) will receive first monies returned on profits, after deferrals.
DO NOT TAKE PEOPLE'S MONEY WITHOUT DOING A LOT OF RESEARCH ON THE SUBJECT AND CONSULTING OTHER PRODUCERS AND LEGAL PROFESSIONALS.
Without a proper contract and business entity a minimum investor could sue you right out of your picture and every other asset you own.
In short, you have a couple of things to offer - money, and percentage of profits. Whole books could be written about either one, but basically every investor will want a percentage of the company or product's profits, and some (usually the first or the largest) will receive first monies returned on profits, after deferrals.
DO NOT TAKE PEOPLE'S MONEY WITHOUT DOING A LOT OF RESEARCH ON THE SUBJECT AND CONSULTING OTHER PRODUCERS AND LEGAL PROFESSIONALS.
Without a proper contract and business entity a minimum investor could sue you right out of your picture and every other asset you own.