Get an Investor or Downsize?
So, I'm at a crossroads and I am going to ask you guys what you think. What would you do if you were in my shoes, unable to continue on due to money issues and a list of equipment that barely made it this season.
1. I have an investor interested in helping me buy some more equipment, which I thought was a god send at first except he wants 60% ownership of my company. He wants me to add another crew, and he would want me to bring my gross up by at least 100k next year. The positives are I get to grow my company more, get to add some projects, more guys, more pride, etc. The negatives are having to share my company with this guy who wants me to turn some pretty big numbers which is going to be stressful to say the least. Also, I won't be making much more money for myself.
2. My other option is sell off the extra trucks and go backwards. Go back to one crew, me and two other guys, and do a the closest/most profitable properties and drop the rest. I figure I can sell off my equipment and get enough together to replace it with decent equipment for one crew. Positives are the lack of debt and I'll get back in shape, better quality of work since I'll be on the job, maybe even have the time to finish college. The negatives are the perception of failure, I'll be taking a pay cut, The stresses of dealing with a much lower cash flow, having to let go of a lot of customers.
What would you do?