Investor trying to beat me!!! Need help!!!

What is the name of your state? VA

I am starting a small business and it's going to cost me $10,000. I will be the sole proprietor of my business. I have someone who wants to invest $5,000 and is wanting 40% of my profits!! Now I am not crazy and will not do it but I want to know how investments are usually done, what percentage do they get for investing half the startup costs and for how long. Can someone please help me out???

Thanks a bunch..

hamzamu1 said:

What is the name of your state? VA

I am starting a small business and it's going to cost me $10,000. I will be the sole proprietor of my business. I have someone who wants to invest $5,000 and is wanting 40% of my profits!! Now I am not crazy and will not do it but I want to know how investments are usually done, what percentage do they get for investing half the startup costs and for how long. Can someone please help me out???

Thanks a bunch..

Click to expand...

**A: everything is negotiated and there are no set percentages by law on a private small biz such as yours.

hamzamu1 said:

What is the name of your state? VA

I am starting a small business and it's going to cost me $10,000. I will be the sole proprietor of my business. I have someone who wants to invest $5,000 and is wanting 40% of my profits!! Now I am not crazy and will not do it but I want to know how investments are usually done, what percentage do they get for investing half the startup costs and for how long. Can someone please help me out???

Thanks a bunch..

Click to expand...

My response:

Go to you local public library, and look for a good book on the subject in the "Business" stacks section.

You and the investor can negotiate any deal you and he wants.

IAAL