Is this a realistic scenario when approaching investors?

Discussion in 'Growing and Managing a Business' started by AjayVirdi, Feb 3, 2015.

  1. AjayVirdi

    AjayVirdi
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    Is getting 100% investor funding to buy a business and operate it with investor funds a realistic goal? I would like to purchase a business but do not have the LEVEL of funds to buy it. I figured I can turn to investors to fund the acquisition and operation while I run the business. I understand that this will leave me with a lower stake in the company's revenue, but is this a realistic scenario to begin with?
     
  2. HooktoWin

    HooktoWin
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    Hi AjayVirdi,

    Here's a few questions I ask to evaluate your situation.

    1. What's the one thing that makes you indispensable to this deal?
    2. What can you provide that investors can't (easily) get somewhere else?
    3. What quantifiable reasons do you have to explain why investors should give you their money rather than someone else?
    4. What's preventing the investors from buying the business, cutting you out and getting someone else (e.g. a low-paid manager) to run it?
    5. How do you plan on getting their money back, along with a hefty ROI?

    Your answer should give me a better idea of whether your situation is realistic or not.
     
  3. JohnBrowder

    JohnBrowder
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    I mean, you have to have an amazing idea if you expect someone else to front the ENTIRE bill while you get a chance to run your business and still make money. I think that the first question that HookToWin asked is the most important one – why would they be unable to do this with someone other than you.
     

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