Cake Central

Advanced Search

Cake Central › Cake Forums › Cake Talk › Cake Decorating Business › Angel Investor

Recent Reviews

Wilton Flower Former Set
Reviewed by MsNeuropil

I have used 3 sets of these for many years and wish I had more. Although the newer designs are like 1 board with 3 different "waves" in it...this older model with its design is much...

Full Review
Wilton White Candy Melts, 12-Ounce
Reviewed by MsNeuropil

I always have some of the White in my pantry for those days when the grandkids are over and want to make something. I have many of the other colors...but sometimes the kiddos want to make their...

Full Review
Cupcake Wrapper Creator
Reviewed by maritzausa

Part 1 of 2 Custom Cupcake Wrappers are an easy way to add a special touch to a party. I like to use them for baby showers because I can put the name of the family on the wrapper. And no...

Full Review
Wilton Fondant and Gum Paste Silicone Mold, Kids Party
Reviewed by crazygrammie

I have all of the Wilton molds in this line and love them. Just very lightly dust and go.

Full Review
Kitchen Aid Brand Professional 610 Stand Mixer
Reviewed by GaMa Marge

I live in MO in the summer and TX in the winter. Both of my kitchens have the pro mixer. I absolutely love both of my pro Kitchen Aids. Very sturdy and wonderful for breadmking. I still wish that...

Full Review

New Posts All Forums:Forum Nav:

Angel Investor

Subscribe Search This Thread

Start a New Thread

post #1 of 4

8/22/12 at 4:19pm

Thread Starter

115 Posts. Joined 10/2011
Select All Posts By This User

I am in the process of starting my business and I have a relative who would like to invest now, and then again later (probably on a larger scale) if we expand. He would like to be part of the business for as long as it's running, but is not requesting to have a voice in any decisions. I guess he would be a silent partner? He says we don't have to formally name his as an owner, so we will keep it as a sole proprietorship for now. My question is: do I need to do anything legally regarding this investment? Do we need to draw up a contract, such as an angel investor contract? We would like to keep this informal, but I don't want to get into any legal problems later. Does anyone have any experience with this?

Thanks!

post #2 of 4

8/22/12 at 4:49pm

969 Posts. Joined 2/2012
Location: Charleston, SC
Select All Posts By This User

YES! Absolutely you need something in writing both to protect you & him/her.

Angel investors are different from silent partners. You will need to have a very serious & honest discussion about exactly what everyone expects.

I should be so lucky! Remember though that money can sometimes change relationships. Be sure to ask exactly what kind of return on investment s/he is expecting.

You don't necessarily need a lawyer to draw up a contract. You can type an agreement outlining the entire relationship. Remember that anything NOT written in the agreement is NOT part of the agreement. If something happens you will be bound to the 4 corners of the "contract" so remember that nothing is assumed & everything must be included.

Some ?s to ask include: what type of return on investment do you expect? what do you expect to happen if the business fails? what if it is a huge hit? Is there a point where we/I can buy you out?

www.VeryDeliciousDesserts.com

https://www.facebook.com/pages/Delicious-Desserts/207874222593145

It's never "just cake!"

You may get a cake for $way to little but you won't get this cake!

www.VeryDeliciousDesserts.com

https://www.facebook.com/pages/Delicious-Desserts/207874222593145

It's never "just cake!"

You may get a cake for $way to little but you won't get this cake!

post #3 of 4

8/22/12 at 5:06pm

1,183 Posts. Joined 9/2011
Select All Posts By This User

Quote:

Originally Posted by DeliciousDesserts

YES! Absolutely you need something in writing both to protect you & him/her.

Angel investors are different from silent partners. You will need to have a very serious & honest discussion about exactly what everyone expects.

I should be so lucky! Remember though that money can sometimes change relationships. Be sure to ask exactly what kind of return on investment s/he is expecting.

You don't necessarily need a lawyer to draw up a contract. You can type an agreement outlining the entire relationship. Remember that anything NOT written in the agreement is NOT part of the agreement. If something happens you will be bound to the 4 corners of the "contract" so remember that nothing is assumed & everything must be included.

Some ?s to ask include: what type of return on investment do you expect? what do you expect to happen if the business fails? what if it is a huge hit? Is there a point where we/I can buy you out?

^^^YES!! Absolutely. If you're dealing with a business, then have a business dealing. Even (especially) if it's a relative.

post #4 of 4

8/22/12 at 5:58pm