Hi, I am currently running my cake business from my home (licensed and inspected). I have been thinking of opening a storefront location because I'm running out of space in my home kitchen. I was recently contacted by a client, she said she would be willing to invest in my business as a silent partner if I decided to expand. Is this a good or bad idea? What would you do? I know that getting loans from banks for small businesses can be difficult. Thank you for any advice or opinions.
Silent partner??? Good idea? Bad idea?
Jason- All of those details haven't been discussed yet. I wish I had more information. I just wanted general opinions on the subject. I, personally, don't have a good feeling about it because I hate the thought of sharing my business with someone else. I feel that I'm ready for a storefront. I've tried products from places in this area and I am not impressed at all. Honestly, I'm disappointed that people spend their hard earned money on some of the stuff that's being sold. I really appreciate you taking the time comment on my post. I know a lot of CC members value your opinion, I'm included :)
The key thing is making sure what you are getting matches up with what you are giving away, in the form of promised future payments, a percentage of gross or net income, and/or company equity.