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  #1  
Old 06-20-2013, 12:27 PM
LLL357 LLL357 is offline
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Location: New Orleans Metro
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Financial Backing

I've been approached by a family friend about providing financial support for my lawn & landscaping company. I've been in the business for several years, aquired several accounts, commercial and residential and have a lot of equipment (2 trucks & 2 trailers with full setup on both).

I also have my license and insurance. But, I think the financial support will give me the opportunity to grow, add employees etc. The problem is I've never done this and have no idea what to expect, percentage to pay investor etc. If any of you guys can shed some light on this, pros & cons, make some suggestions I'd greatly appreciate it.
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Old 06-20-2013, 01:23 PM
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tonygreek tonygreek is offline
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What was this family friend's approach and pitch? Did they mention what they'd like in return? For example, an ownership stake or just interest on the cash infusion?

Since you've already been in business for several years, what will this cash investment/loan actually provide for you that you haven't already been able to do via your company's own income? If you take that hard look, is operating capital the reason you're not there already, or won't be there in the near future?

I would take a look at what they want in return and see how it fits your legitimate growth plan or roadmap.
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Old 06-20-2013, 02:10 PM
LLL357 LLL357 is offline
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Financial Support

The family member approached me with the "i'm tired of working where i'm working" approach. He's been at that job for 15 - 20 years. So, I'm thinking if he invests, he may want to have an opinion in the day to day operations.

I'm a disabled vet looking to hire other disabled vets etc, with rebuilding their lives, providing for their families etc. I do this part time & work a full time job, but looking to expand and have a full time crew. My wife does all my paperwork and assists me with sales (looking for new accounts), marketing etc, spot checks etc.

This backing should give me the capital to hire employees, purchase box truck, etc. Just seeking guidance on this situation....

Thanks guys
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Old 06-20-2013, 02:17 PM
DEPENDABLE LANDSCAPING DEPENDABLE LANDSCAPING is offline
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Do you want a partner? It sounds like this is the angle that is getting played.
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Old 06-20-2013, 02:31 PM
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KrayzKajun KrayzKajun is online now
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Doesn't sound very appealing. Anytime money is involved they are going to want a say so in decisions.
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Old 06-20-2013, 03:06 PM
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jsslawncare jsslawncare is offline
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Financial Backing

If you have the business then you don't need an investor. Cut him loose and keep all the money.
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Old 06-20-2013, 03:10 PM
LLL357 LLL357 is offline
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Yeah, kind of weary about having a partner when I put so much into it myself. I have enough biz partner with my wife. Plus, they have no experience in this industry and wouldn't understand whats involved.
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Old 06-20-2013, 03:18 PM
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tonygreek tonygreek is offline
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Then I would stay your course, reinvest in your company, grow it naturally, and expand as you can. It sounds like you have a great, altruistic business and a bit of media attention will help you fuel some growth by marketing for you.
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Old 06-20-2013, 03:46 PM
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Colaguy Colaguy is offline
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This backing should give me the capital to hire employees, purchase box truck, etc. Just seeking guidance on this situation..



I say go for it but get an attorney to draw up a contract and as long as you own over 51%, then your the boss & if investor comes to work with you, your still the boss. A legal binding contract will cover everything & you'll be able to grow into a better biz.
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  #10  
Old 06-20-2013, 04:24 PM
PaperCutter PaperCutter is online now
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Do you currently have a "team" of advisors (CPA, attorney, etc)? Here's the thing: you didn't go out looking for investors, this person came to you. If it were me, I'd put any discussions/negotiations with this person on hold. I'd then meet with my CPA and other advisors to figure out a) if such an agreement would benefit me and b) how I would structure it to benefit me the best. You're holding the cards right now. A good CPA can tell you what's reasonable and what would help you grow, so you can respond to this person and say "ok, IF I bring someone in, these are the terms, these are the responsibilities, and this is what everyone does." Make it work for you, protect what you've built, and control the process.
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