To be honest, I don't understand your answer. 'Buy an off the shelf company'?
We have a name, we have an idea, we have our suppliers, we have our customers, we have our premises, we have our experience and knowledge, we have two potential investors. We need advice on how best to set up a limited company with say 100 shares and how to allocate these shares.
One investor is a supplier for the company that we currently work for. He will put in up to £100K for a slice of the pie and in return give us better terms on stock by way of price, speed of manufacture and delivery and extra time to pay. He may supply stock up to the value of £100K in stead.
The other potential investor is our ex landlord. He has expressed a willingness to cough up the full £300K in return for a cut of the business. In return, we get a 4000 sq ft unit with no rent, just rates and some sundry equipment such as office furniture. He will also look at providing some working capital for the first few months.
Both these guys will still do business with us even if we say no to investment and go down the 'bank' route for finance and they will do us good deals.
Should we say yes to them? and if so, how much of our company should we offer them and on what terms? Neither want to have a say in the day-to-day running, but can we set it up so that they are not part of any decision making?
They are both experienced entrepreneurs, whereas we three have never set up a company before....there's a chasm of difference in our level of knowledge here and I for one, feel a bit out of my depth at the moment.
Any advice Keith?