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.
My cousin’s husband owns very successful potato chip factory. He has always invested in his business.
However, since you are only eight months in, I would invest carefully so you don’t eat up cash flow unnecessarily.
Instead of upgrading all equipment, consider engaging an engineer to help determine what needs to be upgraded.
As you may know, all equipment components do not wear out at the same rate.
Retro-fitting or upgrading only what is necessary to get the job done will help reduce the amount debt to take on.