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    1 Reply Latest reply on Jun 12, 2009 9:38 AM by LUCKIEST

    Investors Wanted

    ambitious1 Newbie
      Hello,

      I'm an individual locaed in Toronto, Canada. I have spent the past two months coming up with and developing a very, very interesting idea and i have never been more excited in my life. No, i do not have a business plan, what I do have is several pages worth of jot notes, and the entire idea with expansions of the jot notes, in my head. I have spent the past two months just basically developing and fine tuning the idea, i have a clear vision of the long term objectives and results, and the short term objectives required to get there. I am a 22 year old entrepreneur with little business or financial experience, i went to college for business administration. I am young, yes and inexperienced however i'm more than ambitious, sharp, and a quick learner i have no question in regards to my ability to do this however i do not have the means.

      I was wondering if you good folks could advise me as to how to go about getting funding. I foolishly squandered my personal credit when i was younger, so let's leave that option out. What i am leaning towards is finding private investors, i'm sure there are wealthy private investors everywhere more than eager to get their hands on good ideas. What i need to know before i approach and present my idea and business to these people are a few things:

      1) What can i expect of these investors?
      2) Is it uncommon to ask an investor to take on the entire capital investment needed?
      3) I will of course have to give them something for their investment...what is a fair trade off, 50% of the company?
      4) What should i do if the investor requests for a 70/40 split or upwards of 70 and taking what may be considered more than fair? This i would assume is very dependant on how much they are contributing versus how much i/any others are contributing? 5) What can one expect from a private investor, in terms of helping company growth? i suppose this may be the difference between a personal investor and a capital venturist and is different from person to person.
      6) What is usually set in place in the agreement/contract with an investor in regards to business failure. I suppose the investor of course would not invest if he thought this would happen, however putting myself in the mindset of an investor i would like some reassurance if this were to ever happen. Would i become personally liable to this investor? for example if the business failed and he or she invested $30k do i now owe the investor the difference between the amount of profits paid to the investor and the original investment?
      7) Protecting my idea, before presenting to possible investors. One might be able to argue that great ideas which result into global million dollar companies are not abundant, however i truly feel that i have this, and am a bit wary as to blabbing on about it. Would it be wise for me to seek intellectual property patents or something of that sort?

      I'm sure you all have other things to do, and would like to thank you for reading my lengthy post.