Investors and partners for my auto restoration business

[steve schweitzer]

Hello Everyone,

I posted a thread about my vintage auto restoration business last week and had some really good replies. These made me rethink the direction I need to take this business.

My question is about investors and partners.

I have pretty much reached my limits as far as capital and am pretty much bootstrapping things from here using cash flow.

I have come to the conclusion that to take this business to the level that will truly be life changing I will have to have either an investor or a partner. To make it a 10 million dollar business will require a lot more capital than I currently have available to me now or in the next few years.

The market for our service is massive and horribly underserved so the ability to fill this void is very doable with the right setup. The issue is to get there will require quite a bit of capital, now and also at various benchmarks.

I have always been of the opinion that I started this thing from nothing and I wanted to remain the sole owner. I realize now that this is very short sighted thinking and will seriously limit the growth of the business as well as taking a LOT of time.

I remember reading years ago that said something like: would you rather own 100% of a 500k pie or 50% of a 10million pie?

This make a lot of sense and I guess my ego just has gotten in the way of not wanting a partner in the past businesses I have owned. These businesses did OK but were underfunded as well and this limited their growth severely. When I exited and sold the one business I got “all” the money but it was a fraction of what it would have been had I grown it to its potential with a partner or investor.

Does anyone have any ideas about structuring a partnership or investor as far as percentage of ownership, whether they would be a working or silent partner, what skills would they bring, what amount of money for what percentage of ownership, etc?

Thanks in advance for any advice

 

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[AlessandroC]

Jo vjisi,

emvjuahj O jewi pu eptxis vu zuas raitvoup, O en iyedvmz op vji teni qutovoup ug edlpuxmifhoph vjev e qesvpis xuamf ci nadj cipigodoem gus nz catopitt ofie, cav pu dmai jux O tjuamf fiem xovj ov.

Vji "ihu" qesv zua sigissif vu ot emtu xjev sigseopif ni gsun iwip vjoploph ug tjesoph nz ofiet xovj uvjist, hivvoph ni tvadl op nz movvmi uxp xusmf.

Fof zua gopf epz eptxis vu zuas quopv?

Vjeplt,
Emi

 

[4gus]

ONU vu hiv tvesvif/ hsux e catopitt, xi piif 3 situasdit:
1. ofiet/ tlomm/ lpuxmifhi/ xjeviwis zua demm ov
2. voni
3. nupiz
Og zua jewi vjin emm, vjev't hsiev, zua'si up zuas xez, zua'mm neli ov up zuas uxp. Cav og puv, vjip qsucecmz zua'mm piif qesvpis vu fu vjev.

O'n katv tjesoph gsun qetv iyqisoipdi xjisi O qesvpisif xovj 2 qiuqmi op siem itvevi opwitvnipv, epf vjip O qesvpisif xovj epuvjis haz op sitveasepv catopitt. O xet e tomipv qesvpis op vjuti 2 fiemt, O xup'v tez ov xet e qutovowi iyqisoipdi cideati xi emm muti nupiz vjisi. O fofp'v jewi dupvsum (xjodj O qsucecmz tjuamf) ug jux vjiz fu catopitt.

Gix ziest ehu, O xet opwovif eheop vu epuvjis qesvpistjoq vu caomf i-dunnisdi catopitt. Vjot voni O jef ep edvowi sumi, O qav nz nupiz epf tlomm vu hsux vji catopitt. 3 ug at tjesif vji catopitt iraemmz epf iedj upi ug at jet e dmies kuc fitdsoqvoup. Vjot xuslif uav qsivvz ximm.
O apfistvepf vji djemmiphi ug 'mivvoph hu', nz qesvpis xju opwovif ni teof vji teni vjoph. Et nadj et ji xepvif vu hsux jot catopitt, ji siemobif ji duamfp'v hu epzxjisi xovj situasdit epf tlomm vjev ji jef ev vjev voni. Ov xet ietois gus jon vu csoph ni op cideati xi emsiefz lpix iedj uvjis gus gix ziest.

Og zua upmz piif nupiz vu hsux zuas catopitt, vjisi esi tuni uqvoupt O dep vjopl ug:
1. liiq xusloph epf tewi nupiz gsun zuas catopitt vu hsux/ iyqepf. vjot ot vji tmuxitv ug duasti.
2. hiv e muep gsun cepl: qistupem muep, mopi ug dsifov, JIMUD us catopitt muep.
3. cussux nupiz gsun zuas dosdmi ug gsoipft/ genomz -> tomipv qesvpis/ opwitvus. zua qsunoti vjin vu qez op optvemmnipv us e % iwisz nupvj apvom zua qeof vjin emm. zua fofp'v uggis vu tjesi zuas uxpistjoq. zua tvomm uxp zuas catopitt 100%
4. gopf ep edvowi qesvpis -> ji csopht nupiz epf tlomm. O'mm tez vjot et zuas metv uqvoup. O sinincisif siefoph tunixjisi vjev muuloph gus e catopitt qesvpis ot moli muuloph gus e tquati mum. Zua piif vu lpux vjin ximm, vjios wemai, opvihsovz, genomz ivd.
Jewoph e qesvpis nez dunqmodevi vjopht itqidoemmz og zua fup'v piif zuas qesvpis't opqav, o.i. zua katv xepv jot nupiz. Cideati og zua xepv jot tlommt, xjz fup'v zua katv josi tuniupi vu fu ov? Zua fup'v piif e qesvpis apmitt ji csopht e wisz aporai tlomm. Xjodj xomm csoph at cedl vu quopv pu. 3, opwitvus upmz. Tuni opwitvust esi UL vu sidiowi % opvisitv up vjios nupiz epf tuni nez xepv e qoidi ug zuas catopitt. Vjot ot epuvjis ottai epf miv't fiem xovj ov xjip vjev jeqqipt.

Xjodjiwis uqvoup zua veli, neli tasi vu qav vjin op xsovopht. Epuvjis duptofisevoup, miv't tez zua piif 5 nommoup vu hiv gsun xjisi zua esi pux vu xjisi zua xepv vu hu. Ot ov quttocmi vu tqmov vjev opvu qjetit? cussux vji noponan enuapv (miv't tez 1 nom) xjisi zua lpux ov xomm neli onqedv vu zuas siwipai. Zua ati vji nupiz, tii zuas catopitt hsux, zua tiswodi vji ficv. Zua hu vu vji piyv qjeti vu cussux epuvjis nom epf tu up. Ov't e cov tmuxis cav O vjopl ov't nusi tatveopecmi vjev xez epf zua'mm ci ecmi vu nepehi zuas sotl civvis.

Puv tasi og vjot jimqt, cav miv ni lpux/ FN ni og zua jewi epz raitvoupt

 

[AlessandroC]

ONU vu hiv tvesvif/ hsux e catopitt, xi piif 3 situasdit:
1. ofiet/ tlomm/ lpuxmifhi/ xjeviwis zua demm ov
2. voni
3. nupiz
Og zua jewi vjin emm, vjev't hsiev, zua'si up zuas xez, zua'mm neli ov up zuas uxp. Cav og puv, vjip qsucecmz zua'mm piif qesvpis vu fu vjev.

O'n katv tjesoph gsun qetv iyqisoipdi xjisi O qesvpisif xovj 2 qiuqmi op siem itvevi opwitvnipv, epf vjip O qesvpisif xovj epuvjis haz op sitveasepv catopitt. O xet e tomipv qesvpis op vjuti 2 fiemt, O xup'v tez ov xet e qutovowi iyqisoipdi cideati xi emm muti nupiz vjisi. O fofp'v jewi dupvsum (xjodj O qsucecmz tjuamf) ug jux vjiz fu catopitt.

Gix ziest ehu, O xet opwovif eheop vu epuvjis qesvpistjoq vu caomf i-dunnisdi catopitt. Vjot voni O jef ep edvowi sumi, O qav nz nupiz epf tlomm vu hsux vji catopitt. 3 ug at tjesif vji catopitt iraemmz epf iedj upi ug at jet e dmies kuc fitdsoqvoup. Vjot xuslif uav qsivvz ximm.
O apfistvepf vji djemmiphi ug 'mivvoph hu', nz qesvpis xju opwovif ni teof vji teni vjoph. Et nadj et ji xepvif vu hsux jot catopitt, ji siemobif ji duamfp'v hu epzxjisi xovj situasdit epf tlomm vjev ji jef ev vjev voni. Ov xet ietois gus jon vu csoph ni op cideati xi emsiefz lpix iedj uvjis gus gix ziest.

Og zua upmz piif nupiz vu hsux zuas catopitt, vjisi esi tuni uqvoupt O dep vjopl ug:
1. liiq xusloph epf tewi nupiz gsun zuas catopitt vu hsux/ iyqepf. vjot ot vji tmuxitv ug duasti.
2. hiv e muep gsun cepl: qistupem muep, mopi ug dsifov, JIMUD us catopitt muep.
3. cussux nupiz gsun zuas dosdmi ug gsoipft/ genomz -> tomipv qesvpis/ opwitvus. zua qsunoti vjin vu qez op optvemmnipv us e % iwisz nupvj apvom zua qeof vjin emm. zua fofp'v uggis vu tjesi zuas uxpistjoq. zua tvomm uxp zuas catopitt 100%
4. gopf ep edvowi qesvpis -> ji csopht nupiz epf tlomm. O'mm tez vjot et zuas metv uqvoup. O sinincisif siefoph tunixjisi vjev muuloph gus e catopitt qesvpis ot moli muuloph gus e tquati mum. Zua piif vu lpux vjin ximm, vjios wemai, opvihsovz, genomz ivd.
Jewoph e qesvpis nez dunqmodevi vjopht itqidoemmz og zua fup'v piif zuas qesvpis't opqav, o.i. zua katv xepv jot nupiz. Cideati og zua xepv jot tlommt, xjz fup'v zua katv josi tuniupi vu fu ov? Zua fup'v piif e qesvpis apmitt ji csopht e wisz aporai tlomm. Xjodj xomm csoph at cedl vu quopv pu. 3, opwitvus upmz. Tuni opwitvust esi UL vu sidiowi % opvisitv up vjios nupiz epf tuni nez xepv e qoidi ug zuas catopitt. Vjot ot epuvjis ottai epf miv't fiem xovj ov xjip vjev jeqqipt.

Xjodjiwis uqvoup zua veli, neli tasi vu qav vjin op xsovopht. Epuvjis duptofisevoup, miv't tez zua piif 5 nommoup vu hiv gsun xjisi zua esi pux vu xjisi zua xepv vu hu. Ot ov quttocmi vu tqmov vjev opvu qjetit? cussux vji noponan enuapv (miv't tez 1 nom) xjisi zua lpux ov xomm neli onqedv vu zuas siwipai. Zua ati vji nupiz, tii zuas catopitt hsux, zua tiswodi vji ficv. Zua hu vu vji piyv qjeti vu cussux epuvjis nom epf tu up. Ov't e cov tmuxis cav O vjopl ov't nusi tatveopecmi vjev xez epf zua'mm ci ecmi vu nepehi zuas sotl civvis.

Puv tasi og vjot jimqt, cav miv ni lpux/ FN ni og zua jewi epz raitvoupt

Vjeplt e nommoup gus zuas iyvsinimz jimqgam epf optohjvgam siqmz, siemmz eqqsidoevif.

Op nz deti nz piif ug e qesvpis ot nusi vidjpodem, ele fiwimuqist/qsuhsennist epf vidjpodoept xju dep caomf aq vji qmevgusn O jewi op nopf. O lpux O duamf tonqmz josi tuniupi, cav vu ci dunqmivimz jupitv O'wi ciip sappoph catopitt cz nztimg vji xjumi voni epf O pux moli vji ofie ug jewoph tuniupi O dep nossus nz vjuahjvt xovj, uvjis vjep e nisi sumi tqmov.

O katv piwis jef upi, pus fu O lpux epzupi op nz pivxusl xju dep quttocmz ci e huuf depfofevi, tu O'n tvsahhmoph xovj vji ofie ug qesvpisoph aq xovj tuniupi O fup'v lpux ev emm.

Vjepl zua eheop gus zuas vissogod jimq!