Funding idea for my business idea

containershop

First off, I am not asking for business funding (yet) but just looking for criticisms or any advice re my idea to fund said entrepreneurial idea.

The business idea is not nove. It is basically a convenience store but in a slightly different way in a hugely high traffic area. Ive 5 years of retail management experience (all in convenience stores). I have a lot of retail experience beyond just those 5 years. Accountant by education.

Anyways my idea for funding? I need extra funding of 20k. I was thinking of offering funders a share of the entire net profits for 3 years or until your investment has tripled (whichever comes last). Youd also get quarterly updates on the business and maybe some bts and polling of new concepts etc. You wouldnt hold any ownership of the business. You wouldnt be liable for any debt that ensues (saying that your investment recoup was the business to fall into debt would be second last to mine.. first would be debtors etc).

E.G. someone who funds my idea by €100 would get AT LEAST a €300 return + their investment. They would receive quarterly newsletter and finance updates on the business etc.

Jim_Hodge

So, investing with no equity and no guarantee of the 300% return if the business bombs. Basically you're looking for multiple unsecured loans.

containershop

Thats fair. True.

Jim_Hodge

https://www.boards.ie/discussion/comment/120314461#Comment_120314461

Then, you'll not get many saying "sure take my money, with absolutely no guarantee of a return".

Donald Trump

Will you get planning permission to have a shop in a container? Or even to park it there?

antoinolachtnai

A promise of a share of net profits is basically worthless. An investor will want a regular payment with their capital returned over the period or antthe end, and the security of a charge over the assets. If you miss a payment then the investors will be entitled to step in to rake control of the business.

This is basically what Denis O’Brien was doing to finance his mobile phone ventures in the Caribbean.

Jim_Hodge

TBH, I'm finding it hard to take in that you have an accounting qualification with a funding model like this.