Before you start looking for an investor, you need to decide on the proposed model of cooperation. Of course, you can fully rely on an experienced businessman, who himself will offer an interesting way to interact with the business, but then you lose the dominant position. Do not forget that it is not the investor who dictates the conditions, but the businessman.
In total, there are 3 ways of cooperation:
• Receiving a percentage of the amount invested in the business;
• Receiving a percentage of the profits at the time of the entire business;
• Getting a stake in the business.
Choosing a way of cooperation that interests him, a novice businessman should indicate this way of cooperation in his business plan.
“There are cases when investors do not agree with the chosen model of cooperation. It is necessary to analyze this situation and understand whether it is worth taking the lead of a more experienced businessman, or better to insist on your own. ”
Sometimes it is better to sacrifice your principles and get money for the project, and sometimes refuse the offer and find another person concerned.