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Originally Posted by shellbtan I am looking into buying a salon in the future I have been doing lots of research, I am putting together business plan and looking for investors. I am just not sure what to offer for compensation for the investors . |
Like any business purchase, investors are going to be interested in the return on their money.
If you are buying an existing salon, you will have their numbers on assets and net profits. You will share this with the investors. Based on the value, they will typically want either a payoff plan for when their money will be returned (and at what additional amount that will represent their ROI for lending you the money) and/or a percentage of ownership in the business and resulting percentage of profits that come from it.