Investing in a food business 101
November 10, 2011 9:37 AM Subscribe
Investing in a food business. How can we make sure that we're getting a fair share of ownership and a good return on our investment?
In a nutshell, we are seriously considering becoming investors in at least one small food/hospitality business (both still in the business plan stage, but both of which are proposed by people with demonstrably sound track records running similar small businesses). We both have experience in the food industry (albeit peripherally), but what we really need is help with resources to help us gauge whether or not the people planning the business are offering us a fair stake and fair return.
Have you done this? If so, what resources were helpful to you?
If you run a small business, how did you structure investment arrangements and how did you decide what to offer investors?
We're savvy enough to know about the old saw about valuing businesses at 2.5 times cash flow and planning in advance for an exit strategy. But this is new for us and we want to hear anything that might help us make more informed choices.
In a nutshell, we are seriously considering becoming investors in at least one small food/hospitality business (both still in the business plan stage, but both of which are proposed by people with demonstrably sound track records running similar small businesses). We both have experience in the food industry (albeit peripherally), but what we really need is help with resources to help us gauge whether or not the people planning the business are offering us a fair stake and fair return.
Have you done this? If so, what resources were helpful to you?
If you run a small business, how did you structure investment arrangements and how did you decide what to offer investors?
We're savvy enough to know about the old saw about valuing businesses at 2.5 times cash flow and planning in advance for an exit strategy. But this is new for us and we want to hear anything that might help us make more informed choices.
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posted by gerryblog at 12:40 PM on November 10, 2011