Daveydoris
Registered User
- Messages
- 48
Hi All,
Long time browser but first time poster so bear with me!
My partner and I are in the process of starting up a business...in short, its primarily a Hair Salon with some Beautician services added in.
We have 2 different options in terms of financing the startup of the business which essentially boil down to;
1 - Re-mortgaging our home, which will free up 40K, re-mortgaging an investment property that we own, freeing up 30K and finally, borrowing 30K from friends\family who have expressed an interest in putting cash into the business somehow
2 - Re-mortgaging our home ( 40K) and borrowing 50-60K from family\friends to make up the difference.
Either way, we will have to borrow some money from people around us, my question is this;
What is the most efficient way to go ahead with this?
1 - Setup a LTD company, take the 30K from our investors and give each of them a percentage of any shares, distribute any profits accordingly and eventually buy them out?
2 - As above but with the 50-60K investment from family friends....I'm not keen on this one as it will surely prove more difficult to buy out people who have invested this amount of cash
3 - From what I can gather, most Hairdressing businesses operate as partnerships, should we setup a partnership and merely repay our investors + something to make it worthwhile?
My partner will be the one who runs the Salon on a daily basis, I will be heavily involved in the setup and will provide admin support to the business out of hours ( I want to keep my own job - the bills will still need to be paid during the tough times!).
Apologies if this is a bit long winded but I've a dozen more questions banging around my head!
Long time browser but first time poster so bear with me!
My partner and I are in the process of starting up a business...in short, its primarily a Hair Salon with some Beautician services added in.
We have 2 different options in terms of financing the startup of the business which essentially boil down to;
1 - Re-mortgaging our home, which will free up 40K, re-mortgaging an investment property that we own, freeing up 30K and finally, borrowing 30K from friends\family who have expressed an interest in putting cash into the business somehow
2 - Re-mortgaging our home ( 40K) and borrowing 50-60K from family\friends to make up the difference.
Either way, we will have to borrow some money from people around us, my question is this;
What is the most efficient way to go ahead with this?
1 - Setup a LTD company, take the 30K from our investors and give each of them a percentage of any shares, distribute any profits accordingly and eventually buy them out?
2 - As above but with the 50-60K investment from family friends....I'm not keen on this one as it will surely prove more difficult to buy out people who have invested this amount of cash
3 - From what I can gather, most Hairdressing businesses operate as partnerships, should we setup a partnership and merely repay our investors + something to make it worthwhile?
My partner will be the one who runs the Salon on a daily basis, I will be heavily involved in the setup and will provide admin support to the business out of hours ( I want to keep my own job - the bills will still need to be paid during the tough times!).
Apologies if this is a bit long winded but I've a dozen more questions banging around my head!