Possible Investment

[uniquedetailing]

Hi Guys, I wanted to get the views of other professional detailers on the forum. Business has really taken off for me this year and I am mobile at the moment. I would like to set-up shop and grow my business. I have found a great location which would be ideal for my business, close to city, dealerships etc. I am also in the process of becoming certified in PPF which i would like to offer once I become efficient. Also in the shop we will have dyno-testing. To get everything running i am pondering on the idea off finding an investor. I have someone lined up which we have talked in the past about. my question is there anybody else out there who has investors? am i causing problems for myself? any input would be appreciated.

Thanks

 

[jimmybuffit]

There are at least two kinds of investors; active and passive.



The active investor has talents and skills to invest in addition to cash. He will expect a reasonable return on his investment in addition to participating (to some extent) to the development and operation of the enterprise. While this can be positive, it can also lead to conflicts of opinion. If his vision of the business is very different than yours, well... for example,"we will have dyno-testing" is a concept not usually found in a detailing facility. Will the investor thoroughly understand the purpose and value of that aspect? I don't. Additionally, this investor will want a majority share of ownership - how and when can you acquire his position?



The passive investor offers less opportunity for conflict. He expects a fixed return on his investment. Period. This arrangement would ideally be in the form of a loan that is diminished over time.



I've had partners in other enterprises. I'll not do that again.



Write this down and put it in your wallet:



The Golden Rule: He who has the gold, rules.

 

[gigondaz]

For myself, I'd never partner with another investor.





Based on my experienced, once you have a rich investor willing to splurge on your business, your errr...."lower extremity" will be clutched in the palms of this investor.





There's never any free lunches.





In addition to facing daily frustrations dealing with customers, staff and suppliers.......

you'll have to REPORT to your generous investor who is just mainly after the $$$$...





And be careful....from my experience, in certain countries, many of these behind-the-scene "investors" are actually dabbling in illegitimate activities (unknown to you), and could be discreetly or outwardly using your business to launder their money. Has happened to my buddies before.

 

[David Fermani]

I'm glad that business is growing for you! I highly suggest you avoid taking on an investor, unless your really have no other alternative. At that point, I'd set up a time frame parameter to mitigate this person from having a piece of your business forever. Don't give him any kind of controlling interest and make sure to have everything in writing and reviewed my an attorney.



Detailing, PPF & dyno-tuning......They don't really mesh?? I can see the PPF, but the dyno option is totally out of the relm of this market. Big investment too, especially when you consider having the proper sized shop to have the adequate harmony. I'd focus on detailing (at your shop) and then grow into other things are the opportunity opens.