investment strategy for start up company
- February 8, 2017 at 11:37 am #166592
My and my wife have a small tour operator start up company(online) for one year- not making any money yet as it will take long process. We have spent approx. £ 15 000 so far (website, 1 year seo, all insurances, advert, marketing, exhibiting etc.) + our working time (35 hours a week for 1 year). To run to company on the professional level cost around £ 15 000 – 20 000 per year (not including any labour cost) Based on this that we need 60 customers per year to start making profit.
There is a publishing company who would like to invest in to our business with capital and service as well. As it was a bolt from the blue we don’t know how much should ask for what share percentage. The business worth more than we already invested as we stared to be recognized on the market, thanks for marketing activities. Please advise me! many thanks in advance.February 8, 2017 at 3:21 pm #166616
Ask what they can bring to the table with their investment?
And then ask what they are ideally looking for as a %? Savvy investors will know your companies worth and they are usually fairly realistic
They will start high, but you will compromise somewhere, unless they offer something really exceptional then snap their hands-off!
Keep us all posted, should be compelling reading, I’m certainly keen to know how you get on, good luck with it
RichardFebruary 8, 2017 at 4:21 pm #166621
We need them to survive. Otherwise I would not have considered this option. They also can open many doors for us; they have good links to travel agency network and traveller database around the world (service) as well as giving us financial liquidity (capital).