I've a (reasonably) proven business going that could scale up notch or two if it got some cash investment. I've also got a businessman friend whose got a 1/4 mil cash he's looking for a return on and he's happy to invest in me (he's done so before in the business to good effect - albeit for a lesser amount).
The essentials I can think of are:
What kind of returns would other vehicles having this level of security/timescales typically offer? This so that I can suggest a generous but not ludicrously-generous return for his investment in me.
Thanks for any advice / further expansion on my limited knowledge of the area
The essentials I can think of are:
- my being able to offer a guaranteed return: were things not to work out as rosily as planned, my own (approximately the same as his) capital investment amount would take all the hit before the agreed return on his investment be diminished. Assume for the purposes of discussion that it would take an economic meltdown of Armageddon-proportions for this to occur.
- his capital would be locked in for about a year before payout (at which point he could chose to repeat invest). There is a clear enough exit point. He's happy enough with those timescales.
- his capital would be locked in for about a year before payout (at which point he could chose to repeat invest). There is a clear enough exit point. He's happy enough with those timescales.
What kind of returns would other vehicles having this level of security/timescales typically offer? This so that I can suggest a generous but not ludicrously-generous return for his investment in me.
Thanks for any advice / further expansion on my limited knowledge of the area