What do you offer back to your investors?

I was thinking about getting some investors into my current business project. I think I can get a couple people to invest $2,000-$3000 each. Now what kind of return should I offer? Anyone know more about the investing business? How it all works.

 

Your investors may will like to have a share in your company or would like to become a partner. It all depends on the size and nature of business.

 

Your investors should have profits share , thats the role of investors and nothing like you should repay them and all such , you should reapy them if you have taken a loan...

 

There are tons of different ways to set up the return of their money and return on their money. They can either be equity investors and you simply give them a portion of your business (and earnings). They would then own a certain portion of your company.

Or they can be debt investors which is more common...its pretty much just a loan. They would get back their money and then a given return over a set time period. So they give you $2,000 and you can agree to give them $500 every 6 months for 4 years. Keep in mind that they would have to get a very nice return to justify them investing into your business that doesn't already have a solid income stream. Its risky for them and they should get paid for that risk.

Or there are all kinds of hybrid models where investors can be equity and debt investors at the same time.

Many ways to go about this!