Know-How Exchange : Other

Here are some resources for you:
https://ezinearticles.com/?Selling-Equity-in-Your-Corporation&id=426996
https://www.entrepreneur.com/management/answerdesk/article169324.html
https://www.gaebler.com/How-Equity-Dilution-Works.htm
https://money.cnn.com/2006/02/28/magazines/business2/angelinvestor/
https://www.startupnation.com/forums/11916/1/1
https://www.moneyinstructor.com/art/privequity.asp
https://www.venturechoice.com/articles/why_n_how_to_inv_in_priv_equity.htm
https://www.fundamentalcapital.com/news/basics.htm
https://www.gobignetwork.com/
https://www.businesspartners.com/

if you try to incorporate your business so than you have to compromise on some occassions.

lets say if you already injected 1000 $ that means you have invested nothing but just a peanut! becuase if you talk about $500k so you're talking about as an whole.

the equity comprises on 75% - 25% sharing basis which are the set standards but this also depends on your business plan and the status of the business and the clients are hooked up with you!

the best thing that you can do is, give 75 % of the shares to the investor and ask him to pay you a fixed salary.

so this is how it works and can evaluate your company.

NuCoPro is the master of this kind of question, and his response should get you started. Ultimately the issue will be whether a savvy investor would see enough value in your business (and your business plan) to believe he/she can earn a satisfactory return on his/her investment, in a reasonable period of time.

If you expect them to take a risk by investing in an unproven business, then they have a right to expect that they'll recover their initial investment in, say, 2-3 years, and then earn a hefty return on the investment in the years after that. The more likely they think that will happen, or the faster it will happen, the more likely they'll be to come up with the funding.

Thus the thing you really need to do is focus on your business and marketing plans, and ask yourself the question: "Would I invest my money in a company with that business plan and that management team?"

Don't worry so much about the equity and the money mechanics, and instead make sure the business is really worth the $1 million you'd like to think it's worth. (If you want to raise $500,000 for 50% of the company, then 100% of the company would be worth $1,000,000.)