I'm thinking of starting a business and looking for a small investment to get it going. I'm not sure exactly how I should do a valuation of the stock, so I'm thinking I will just have to be very conservative with numbers.

I started thinking maybe it's a good idea to put in a stock buyback agreement upon getting an investor. Something such as "within the first year stock can be unconditionally bought back for X price" (such as a few times the purchase price).

Would something like this work and not make finding an investor much more difficult? It seems like it would handle the case of if I gave 25% of the business when I really thought they should get more like 5%.

I guess it really does come down to the valuation seeming difficult to do.