Hello, I’m looking to open a hospitatlity business. I’ve calculated that I need around $200,000. I have a few people in mind as potential silent partners but I need help understanding onwership interest. Could I have multiple silent partners? would it be worth it? I don‘t have any of my own capitol as of now so I will need investors for initial startup. Please help me to understand! I already have a business plan with projected growth—

Thanks.

  • der_innkeeper@alien.topBEnglish
    1·
    1 year ago

    Silent partners are people that have faith and credit in your ability to run said business, without their input or guidance.

    At best, you are going to be a manager of the LLC/Corp.

  • Bob-Roman@alien.topBEnglish
    1·
    1 year ago

    “I need help understanding onwership interest.”

    Assume you did have $50K to invest. This would be 25.0 percent of the total amount ($50K / $200K).

    You borrow the rest of the money from three angel investors (family and friends).

    Each one lends you $50K and each gets 25 percent ownership interest in the business and share of profits.

    So, if have you zero money, the only thing you are bring to the party is sweat equity for putting a venture together and possibly managing it for a salary.

    In some cases, investors may give sweat equity partner a small piece of the pie (5 to 10 percent).