I am 21 years old and have a Pretzel company with 2 food trucks running. I am looking upgrade all of our equipment to be able to handle the amount of wholesale orders we are getting. I have had multiple friends, older guys I know and other business owners tell me when I am ready they would be happy to invest. Is this the route I should go or would it be better to get a SBA loan?
If I went the route of asking for an investor how do I go about asking them and what is a reasonable valuation for a business that is profitable in 8 months and with net over $150,000 our first year.
150k profit in 8 months is great! If you can get financing with friends and family, do that. Create an IOU and agree on repayment terms. If instead you’re thinking of trading equity, you have to be careful about what % you’re giving up and realizing you have a partnership now. Third option, with those profits is to modernize over time as you can afford it.