How to start a business with investor capital?
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How does one contractually go about starting a small (but hopefully growing) business with the help of investors? Let's say you have the business plan, prototypes, etc and you find an investor who is interested in providing you with start-up cash. What type of formal arrangement to you make with the investor for future profit-sharing? Is there an established formula for determining the investor's ownership stake and/or the amount of future profits that investor is entitled too? Use the following numbers as an example if you require specifics: I supply 100% of the ideas and labor, etc, and the investor contributes 100% of start-up cash--say, $100,000, which would be an investment not a loan. Meaning if the company goes belly up, we both lose and the investor will only have claim to the business's assets, not my personal assets. Thx. (ABSOLUTELY NO WORK-FROM-HOME SPAM REPLIES PLEASE!!~)
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Answer:
Pitch your idea on kickstarter.com and/or prosper.com.
brahmapu... at Yahoo! Answers Visit the source
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