Question

Topic: Other

Opening A Florist Shop - Want Individual Investors

Posted by Anonymous on 11/29/2011 at 8:39 AM ET 125 Points
I am looking at opening a florist shop. Here’s my thought on financing: If I can get x number of people to each invest $1000 for 2-3 years with a return of x% interest:
1 - What kind of “form” do I need to have drawn up?
2 - Does it have to be done by an attorney?
3 –Would they have any say in the day to day operations?
4 – Are they considered investors? Or just loaners?
5 – What if they want to work at the shop? Would they be paid as an employee?
6 – Any suggestions or advise?
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RESPONSES

  • Posted by Peter (henna gaijin) on 11/29/2011 at 10:56 AM Accepted
    What you are talking about is a loan. You can get standard loan forms from various loan forms from various locations, including online, through nolo.com, or right out of QuickBooks (if you are using it). Or you could use an attorney.

    Someone who loans the company money does not normally have a say, but that is all part of any agreement you make to get them to loan you money.

    If they want to work, they would be paid as an employee and that is a legally separate thing from their loan.

    If you are in the States, I'd suggest reading the book I talk about in this blog post - https://expandabroad.blogspot.com/2005/08/start-up-book-recommendation.html. It covers all of the basics of starting up a company, including a section on how to fund the company.
  • Posted by Jay Hamilton-Roth on 11/29/2011 at 11:32 AM Accepted
    How about using a service such as https://www.kickstarter.com/ to get people to directly support your new business effort?
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