mike
05-07-2006, 11:02 AM
You could sell them 20% voting share each at $40K (or 20% of the total investment). That will also give you a 60% gearing, which is pretty good leverage level for a retail outlet and allow you to approach debt financiers with cash in hand.
My question is- WHY do you want them to be part of it? Is it because they're your brothers or because you think they can bring something valuable to the company? If it's the former- reconsider! Making a decision to create a key stakeholder should make business sense, not emotional or familial sense. If you want their cash; be up front, tell them you want them to put in the money, but let you manage them company, and they can enjoy regular dividends (provided the Earnings are substantial enough).
My question is- WHY do you want them to be part of it? Is it because they're your brothers or because you think they can bring something valuable to the company? If it's the former- reconsider! Making a decision to create a key stakeholder should make business sense, not emotional or familial sense. If you want their cash; be up front, tell them you want them to put in the money, but let you manage them company, and they can enjoy regular dividends (provided the Earnings are substantial enough).

