This is a shot in the dark, but I figured someone here might know the answer (or a partial answer) to my question. I have a web design and web marketing business, and I have an investor who wants to throw some money at me. My question is, how much do I valuate the business at?
They would get a silent, non-managing interest in the business entity. The gentleman who is interested in investing doesn't expect any dividends, but wants to be able to sell the shares at a substantial profit, or take a cut when I sell the business. If an investor wanted to buy a 10% interest, how would I calculate how much money to have them invest?
just be calculative, if ur investor is putting in $10,000, how much will he get back in a year. thats what he will think, and if you feel you are more confident you always get loans at lower interest rates. so you have to decide whats the best. investors generally look for taking share on profits or either returns