Thank you for your assistance!
From gathering your advice, I may steer the firm towards more of a start-up VC firm. Farrah Gray went this type of route and he was quite successful. He first gathered capital to start a VC firm. Then him and his friends began about 15 ventures. Five were successful and one was sold for $1.5 Million.
By starting businesses that are completely owned by the firm we don't risk any liabilities from an outside company. We know exactly what is going on. We also can "pull the plug" when we want to and we control all business decisions.
I'd also like to ask another question:
Say one of the VC firm members proposed a business plan. He wants to start a clothing line. He states in his plan that he will be responsible for the main duties - yet he needs capital from the firm. The member only has $1,000 and let's say he needs $10,000. This would mean the firm would be funding 90% of the company.
If the member doesn't want to sell 90% of his company, can't he state in the business plan that he will account for the initial work (outside of the employees he hires in the future) and that he is the original innovator of the business concept? With these facts included, wouldn't it be possible to sell a lesser percent of the company even though in terms of dollars it may be more?
The company can also offer a higher weekly dividend for a lower overall ownership fee.
Thank You
