Hi guys, I am starting a used car operation (independent dealership) from scratch in Northern California- My partner and I put $300K in cash (We have 40 years of combined experience in this business and successful track records in managing and developing used vehicle operations at dealerships). Currently, we are in discussion with few investors to raise $600K in order to purchase additional inventory. We are discussing 3 possibilities, debt/loan, equity or securing a floor plan financing from banks / revolving line of credit.
The question is: what to offer investors in this new business? What is the a fair return to investors? Our projected monthly net profit is around $45k -1[SUP]st[/SUP] year. 50% of the net profit will be invested back into the business for additional growth. Any suggestions or thoughts on what to offer investors are greatly appreciated- Thank you.
The question is: what to offer investors in this new business? What is the a fair return to investors? Our projected monthly net profit is around $45k -1[SUP]st[/SUP] year. 50% of the net profit will be invested back into the business for additional growth. Any suggestions or thoughts on what to offer investors are greatly appreciated- Thank you.
