Small business selling shares of stock

[Southern_Lenders]

How complex is something like this in both a cash and time invested perspective?....does it even make sense for a small start up to issue shares?

I'm looking to raise a large amount of capital (100k+), but I dont want a million partners running around telling me how to run the show, banks probably wont even look at me, neither would VC's and I'm not handing over my company to anyone that has the power to take it away from me.

I thought about Silent Partners, perhaps this would be easier?

My business is set up as an LLC.

Thanks.

[Encrypted]

How complex is something like this in both a cash and time invested perspective?....does it even make sense for a small start up to issue shares?

I'm looking to raise a large amount of capital (100k+), but I dont want a million partners running around telling me how to run the show, banks probably wont even look at me, neither would VC's and I'm not handing over my company to anyone that has the power to take it away from me.

I thought about Silent Partners, perhaps this would be easier?

My business is set up as an LLC.

Thanks.

Selling off your business in shares is a bad idea, especially for a small startup (chances are no one would by them anyway) and by the sound of it you don't want anyone else to have a part in running the show. My suggestion: Get a job and save up the money yourself or just start it off smaller. What type of business is it that you are trying to create?

[Southern_Lenders]

Online payday loans. I have a low six figures, but I live off this money as well, so ... Its tough.

[Encrypted]

Online payday loans. I have a low six figures, but I live off this money as well, so ... Its tough.

I don't see why you can't just start off with a smaller amount. Say, loan out $20,000 until you recoup 50% or so of it and then re-loan what you've gotten back along with however much extra money you've generated since. I'm sure its not that simple, but something to think about.

[Southern_Lenders]

I don't see why you can't just start off with a smaller amount. Say, loan out $20,000 until you recoup 50% or so of it and then re-loan what you've gotten back along with however much extra money you've generated since. I'm sure its not that simple, but something to think about.

Yes, and thats probably whats going to end up happening, however the software needed to transfer funds to and from customer accounts is 12,000 plus 240 a month...because i cant really afford that, I'll be lending to fellow college students and friends the old fashion way. However that wont be so bad I hope, as it will allow me to develop close relationships with peolpe.

[Goldnote]

You can go to prosper(.)com and loan money.

[paul2145r]

One solution I've used is to have the primary venture set up as an LLC, with the members being yourself and a corp. The corp will, in essence, be a holding company. Sell the shares of the holding company, but always maintain control of your business by keeping a 50.1% stake in it. Investors still get some type of tangible stock, but it won't affect your ownership as much as directly divvying out shares of the primary venture.

[Encrypted]

Yes, and thats probably whats going to end up happening, however the software needed to transfer funds to and from customer accounts is 12,000 plus 240 a month...because i cant really afford that, I'll be lending to fellow college students and friends the old fashion way. However that wont be so bad I hope, as it will allow me to develop close relationships with peolpe.

Why do you need software to loan money?

[Southern_Lenders]

Why do you need software to loan money?

because...you plan on meeting all your clients face to face?...if not you need some type of software that will wire money to customer accounts, and withdraw money when the time comes, it keeps track of who's over due, and allows you to be MUCH more organized.

On a large scale it would be impossible without software for any business. period.

[Southern_Lenders]

Lets just say hypotheticaly that I wanted to give up ownership of my company that would allow people to benefit and take part in its growth and success, whats the best method here?

A. Form a Co-op -
B Set up as an LLC and sell shares

technically both methods are a form of ownership, however if the members are seeking profit, a Co-op probably isnt the way to go.

Say I do decide to sell shares, and keep an 80% stake... can the board of directors (if i even need one?) kick me off the company, even if I'm the largest share holder?

No one answered my original question " How complex is something like this in both a cash and time invested perspective?"

[chuff1026]

i did not look at all the responses
but you can simply sell a couple thousand shares for a little amount of money but leave the % low
maybe 30% with no voting rights

[Fanatik]

First of all, if you're trying to do this like a traditional payday loan company, I'm sure you *dont* want face to face contact with all your customers, esp when they see the 186% APR you're charging on that loan.

That said - I know what software you're referring to, and you may want to do a bit more shopping around, because $12k plus $200+ monthly service fee is outrageous. You could get a custom-coded package direct from India for 1/2 that - possibly even lower.

Simply put - selling 'shares' of a small business is few and far between. You can request VC financing if you have a solid business plan (I know you don't want people 'bossing you around' as you put it), but realize that VC probably won't take this for a short-term investment anyhow.

Online Payday loans are already very prevalent (I live in Vegas and I see ads for them all over town, ie: "visit our site today - no need to stop in the store!"). Anyhow - it seems that you need to read a book or two before you attempt to get your feet wet with this idea. The formation and structure of your business shouldn't rest solely in the 'can i sell a share for a buck' idea.

[Southern_Lenders]

Where do you get 136 from?..its 36% APR ( 3% a month). Second I wouldnt trust a company from india. They could rip me off, and I'd never see my money or any justice. The software I mention complies with state and federal laws, and is updated, with great customer support.

[Fanatik]

Where do you get 136 from?..its 36% APR ( 3% a month). Second I wouldnt trust a company from india. They could rip me off, and I'd never see my money or any justice. The software I mention complies with state and federal laws, and is updated, with great customer support.

36 is nice - you're blowing away your competition (from the ads I see here in LV, at least). In my experience, using eLance.com to facilitate some proprietary software packages has paid off big time for me. The key is to select a company with a solid and well-based reputation.

I could've spent $11,500 to have a software package fully developed by a US-based firm. Instead, I went to eLance and found a very good development company based in India to develop the exact same package, with the exact same specs for $2,400. Dollars to Rupees is a huuuuuge conversion. Maybe you should use global economics to your advantage?

Nonetheless, it's certainly a decision to make yourself; but thinking about startup costs and overcoming the mountain of gathering funding, it could be a viable solution to get you jump-started. Just food for thought.

J

[cg410]

I own an IT company, based in New York (no outsourcing). We can develop that software for you for significantly less than $12K. PM me if interested.

--J