Hi all
Im in a bit of predicament at the moment. To cut a long story short a couple of months ago I met a guy who isn't short of cash and a close friend to my partners uncle and after a conversation we agreed to start a aerial drone business together. Since then we have had several meeting and between us we have completed a very in depth business plan. The starting cost is going to be £4000 which include the drone (PP3), Ipad, CAA qualification and marketing cost which we have been quoted at reduced price as my good friend is a graphic designer.
This all sounds good but the investor wants 40% of the profits in year one then 30% of the profits in year 2. He also wants me contribute £500 to show I am also committed to the business. He doesn't want to be a silent partner and is happy to give advice and also take care of the accounts which would remove that cost.
Im kind of undecided at the moment on what to do. I could decide to go it alone buy a drone myself and (£1200) try to master it, and in six months time if Im getting good results with a showreel which would attract paid work then buy the CAA licence also. This way I could own the business outright and all its profits. If in six months time if things aren't going well then I could resell the drone and I would only lose a few hundred quid on the resale.
Or do I let the investor take the financial hit (minus the £500 quid) and if it goes tits up then he loses out. But if things do take off then he will take eventually take 30% of my business profits
I am currently a photographer with a degree in the subject and also get some paid work when Im not at my full time job.
Landscape
Any advice would be much appreciated
Aiden
Im in a bit of predicament at the moment. To cut a long story short a couple of months ago I met a guy who isn't short of cash and a close friend to my partners uncle and after a conversation we agreed to start a aerial drone business together. Since then we have had several meeting and between us we have completed a very in depth business plan. The starting cost is going to be £4000 which include the drone (PP3), Ipad, CAA qualification and marketing cost which we have been quoted at reduced price as my good friend is a graphic designer.
This all sounds good but the investor wants 40% of the profits in year one then 30% of the profits in year 2. He also wants me contribute £500 to show I am also committed to the business. He doesn't want to be a silent partner and is happy to give advice and also take care of the accounts which would remove that cost.
Im kind of undecided at the moment on what to do. I could decide to go it alone buy a drone myself and (£1200) try to master it, and in six months time if Im getting good results with a showreel which would attract paid work then buy the CAA licence also. This way I could own the business outright and all its profits. If in six months time if things aren't going well then I could resell the drone and I would only lose a few hundred quid on the resale.
Or do I let the investor take the financial hit (minus the £500 quid) and if it goes tits up then he loses out. But if things do take off then he will take eventually take 30% of my business profits
I am currently a photographer with a degree in the subject and also get some paid work when Im not at my full time job.
Landscape
Any advice would be much appreciated
Aiden