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5 Replies Last post: Jun 13, 2009 8:20 AM by LUCKIEST

Where to take my company next?

Jun 9, 2009 6:38 PM

Smeltz27 1 posts since
Jun 9, 2009

I have a biological distribution company that has alot of growing potential but, needs capital to continue. I have business credit debt and basically I am making enough to pay the bills. However, due to limited capital im not able to expand. I have no collateral to put up for business loan.
I currently have been offered a business partner that has connection with a number of investment groups. He wants to be 50/50 partners he will provide money and contacts. He wants me to put together some kind of terms to send to him.

Does this sound fair?
What should I do?

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CCS_INC 37 posts since
May 4, 2009

1. Re: Where to take my company next? Jun 9, 2009 9:24 PM

Desperate times call for desperate measures. But remember only to do what makes sense for you. Dont get on the first thing smoking. Remember you are in control. This is your company so If you decide to go that way, make sure it makes sense from your prospective. I may have another option for you. Email me at CorporateCommercialServices@yahoo.com

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creditmagic 5 posts since
Sep 20, 2008

2. Re: Where to take my company next? Jun 10, 2009 12:23 PM

If your company is two or more years old and your personal credit hovers around 650 or better, we can definitely help you.

Please email your contact information to info@finsolamerica.com

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phanio 487 posts since
Apr 7, 2009

3. Re: Where to take my company next? Jun 11, 2009 12:18 PM

The amount of ownership should rest on what the partner brings. For example, let's say your company is worth $100,000 as it stands. Then, someone comes in and invests $10,000 - thus the new value of your company is $110,000. This investor should get 9% of the company ($10,000/$110,000). Now, if they are going to provide other intangibles - you can boost their ownership for them.

Business Money Today

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MyCapital.com 14 posts since
Feb 9, 2008

4. Re: Where to take my company next? Jun 13, 2009 1:42 AM

i don't think 50/50 is a good deal for you. bargin with him for 80/20 (you 80), considering your cash flow is good enough to cover all expenses. you should use cash flow discount method to see what your business is worth. i suspect your business is worth at least a million with this valuation method. if you are giving 50% of your company, does he bring you half a million? you should find an accountant to do some calculation.

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LUCKIEST 7,942 posts since
Aug 6, 2007

5. Re: Where to take my company next? Jun 13, 2009 8:20 AM

Where to take my company next, Welcome

You need a Lawyer, an Accountant and maybe SCORE.

Have you developed a business plan??

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This Question is Possibly Answered

Where to take my company next?

Jun 9, 2009 6:38 PM

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