Getting a debt investor into your company

Sit down with your friend and pencil out your gross, your expenses including wages, fuel, oil changes, wages, taxes, and licensing. Then figure your expected net.
As far as going into business with your family, that's up to you. But family members who feel entitled to participate might also feel entitled to a certain percentage of profit that isn't attainable with your business model.

 

If youre looking at growing, you could try to structure it as shares of stock for profit, but single truck operation, youre just giving them money out of your own pocket for no reason

Alternatively, if theyre willing to be your banker basically and finance your equipment at a better rate than a lending company would, that might not be terrible for both of you (if truck/trailer note is 15% on 100k over 4 years, and they are willing to do it for 8% on 100k for 4 years, you drop payments 145$ a month and they get 8 k instead of some nameless institution... (though having a history with a lending institution has its own bemefits too)

Only 2 ways that make sense in my mind

 

I’d not recommend it but I don’t like having partners. More headache then it’s worth. Just grow on your own organically and if you aren’t making enough to do that in your own the an influx and money and sharing of profits likely isn’t going to help you anyway.

 

I’ve had family members mention similar scenarios. There’s no way. They mean well. It’s a Recipe for disaster. If they’re Interested in being a full time partner, and you can work well together, that’s different. Has to be equal though. Win together, Lose together. I’ve seen a lot of Family Operations that works well. Others not so much. Relationships change when money’s involved. I’d just take the offer as a compliment, and decline. I don’t want to be responsible for others losing money because of me, and have no desire to have to explain or answer to anyone.

 

If you value your relationship with them. Then dont get involved with them.

 

Before you listen to anyone else, you have to answer this question


Is your company a sole proprietorship or incorporated as a C corp?