If someone invests $10,000 to start up My clothing line what percentage does the investor get back?
It depends on what you both agree on and enter into a contract. They would want at least 10% ownership of the company and possibly a percentage of the yearly gross profits.
by coraann - 6 hours ago
depends on how much the investor wants and how much you are willing to let go of
by Zarg222 - 6 hours ago
If someone wants to invest $10,000, their share of the company can be negotiated. If you don't want someone to own too much, you need to negotiate that. If someone tells you they will put up $10,000 for your company, you can agree, but tell them that their $10,000 will get them a 10 or 20% ownership in the company. If you want to get more complicated, you can incorporate and sell shares of your company. Be very careful and if you are talking about that much of an investment, you should talk to a lawyer first.
by David L - 6 hours ago
You need to write the percentage into your agreement. What is the total amount of capital going into the start-up? What is the value of your investment (designs, entrepreneurship, equipment, cash)? "Investment" connotes an expectation of return. This could include a share of the profits (thanks, coraann). You might include a future buyout option.
by Charles - 6 hours ago
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