Startups Stack Exchange Archive

How to take stake in existing business without investing any money?

• posted by: meetpd on 2017-11-07
• tagged: equity, funding, growth, business-structure, business-proposal
• score: 3

Here are the facts:

• There is an existing business (web application) which I am interested in since long. But I cannot afford to buy the business outright.
• Also, the owner is too busy to improve this business.

I want to grow this business as I see it has lot of potential. And in the past, I have found similar hidden gems and have grown them >5x times.

So, how do I approach the owner with a deal which is fair to both the parties?

Looking for advice from someone who has already done something similar.

Thanks!

Answer 13589

• posted by: toobulkeh on 2017-11-07
• score: 5

You could try a performance based contract - where your returns are a % of the improvements. There is some risk involved on his side (who are you and what are you doing with my business) but there could be much higher rewards.

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