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Old 8th June 2011, 11:46 PM   #1
jswebco
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Default Accepting Investments From Someone PLEASE HELP!

Hi,

I started a classified site and forum for gun sellers and collectors ect.

I have only had the forum live for 4 days and already almost 200 members. It is doing really well and is a great niche.

I have had probably 10 people email me asking to invest in my website because of the popularity and what I am doing with it.

I have not the slightest idea on how to accept and what the terms should be. I do not want an attorney for this I just want to accept the investment but how does this work?

How do they benefit? I was thinking that there be profit shared to all investors per how much they invested. Is this the right way to think?

I wanted it to benefit them as much as possible but still leave a little benefit for myself.

ten different people wanting to invest is tough to figure out.

Any help would greatly be appreciated.

MAN THIS IS HAPPENING SO SO SO FAST! 4 days live and 200 members already!

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Old 9th June 2011, 01:05 AM   #2
Runum
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Congratulations on your success.

In order to answer your questions you need to know more information from the investors and they need to know more from you.

Are you going to allow investors to own a portion of your business? What are the terms of pay back? Are there any buy out clauses in case we can't get along? What is your track record of business success? How big is the potential user base? Can you provide hard facts about your website traffic?

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Old 9th June 2011, 01:32 AM   #3
jswebco
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Thanks for your reply.

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Old 10th June 2011, 12:47 AM   #4
lordspace
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Congratulations! You've found a niche.
I'd say find a lawyer. I wouldn't give up control.
Maybe you could invite them on idea board or something.
You want to work with people whom you trust and get along with.

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Old 10th June 2011, 10:48 PM   #5
DROID
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Download a promissory note from legal zoom for like 15 bucks..and maybe a "security agreement" if investors want collateral.

A promissory note is basically an IOU between 2 parties.

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Old 20th June 2011, 12:26 PM   #6
Portal
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Talk to a lawyer. Get a copyright on your idea.

There's no reason that you should risk something that is going to make you money.

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Old 20th June 2011, 03:26 PM   #7
BeTheBest
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I disagree about trying to really 'protect' your idea. That's only good if you have a TON of money to go after anyone that tries to copy. And let's face it, there will be people to copy your idea.

How do you monetize the site now?? Is there a subscription fee?? Is there a membership fee?? If there is and you have 200 people in, then you are a genius. If there isn't I will guess that as soon as you DO put up a fee, you will have 2 subscribers... at best.

So, how do you monetize the site. It's THOSE PROFITS that people will buy into. By the way... how much of an investment are we talking?? 100's?? or is it into 1,000's of dollars (I mean each investor) because that would determine how far I go.

Outside of that... if you really need help... give your investors MY phone number. I will get them signed up and on side.

But seriously, if you need some help... PM me.

Hope this helps!

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Old 25th August 2011, 10:56 PM   #8
cfoservices
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Maybe this is a dumb question and maybe I am missing something but why do you want to accept investors. You have a venture that is only 4 days old and if it has caught fire like you say it has why can't you do it yourself. Of course you did not explain if it is monetized or not among other things.

There are a lot of things to consider when you take on partners. That exact point is highlighted in this article below.

Deciding on a Business Partner

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