Someone has offered to invest in my nursery - basically offering a 16.5% investment against a 37.5% share of the equity
I am about to write back to say no chance....but is this polite enough??
"Things I Katymac, bring to the nursery:
? £30,000 of my own money
? £25,000 long term loan from my parents (but he has made me sign a loan agreement - the rotter)
? £15,000 Asset finance from Lombard
? £28,000 business loan from Natwest secured on the un-mortgaged part of my house
? £32,000 unsecured business loan from Natwest.
? 4 years management experience in a childcare setting
? NVQ3 in Early Years Childcare and Education
? Core staff (already trained and motivated)
? Variety of training courses (including Food Hygiene, first Aid and Birth to Three ? these are legislative requirements)
? 18 months of set-up research
? Won dispute with Highways agency
? Sourced appropriate experts
Financially these add up to £130,000 (72%) of a business needing £180,000. However my input far exceeds the financial outlay.
Investors input to the business
? £30,000
? Some marketing/advertising experience (not quantified)
? Some general business/staffing experience (not quantified)
? Website (reasonably website up & running for about £2,000-3,000)
Even allowing for an annual wage for your input to the business I think a 37.5% share is over generous. I would however, consider a 20% share for a £30,000 investment."
Is that rude??