52 52
52 52

I'm newbee Closed a 30K deal with SMS marketing that i know barely nothing about

by
adlene
adlene
Profile picture of adlene
adlene
Posts: Threads: Thanks: Account age: less than a second
44 replies
Hello Fellow Warriors,

maybe this is the most strange business deal I ever seen or experienced the problem is I'm still learning and Something strange happened to me I was interested on sms marketing and red and participated on most threads in here but never really had a clear answer . anyway I set up a free trial account with trumpia ( found them here in sms threads ) I created a campaign for a restaurant franchisee set up the sms campaign with this restaurant , designed a great flayer and table tent as well posters .. i have no clue what I did and what i'm going to do one thing is I'm sure about is I have a 30k deal with the man the major part of the deal is not to bring custommers to the slower days or promotions but he was thinking business wise , of course i showed him the demo he sent the keyword to the short code and bang the preset message came right in , after a good hour the man told me he is very interested in doing business with me and invest in my knowledge (daahhh ) and finance my venture he believes this going to be the hit .

the conclusion i got my guts together and went for a couple hundred dollars deal I end up with a 30k business proposition to start a company on SMS marketing. ( the man must been very impressed by my presentation even though I wasn't really ready for it i was focusing on the sms campaigns impact on his business and his questions was about technology used and benefits,...etc ).

SO please advice what shall I do ? this is big for me .

thank you
#30k #barely #closed #deal #marketing #newbee #sms
  • Profile picture of the author ExploringInfinity
    ExploringInfinity
    ExploringInfinity
    Profile picture of ExploringInfinity
    ExploringInfinity
    Posts: Threads: Thanks: Account age: less than a second
    Wow, that's incredible and probably quite scary!

    GOod luck with it, it looks like you've found yourself a career.
    Signature
    Get ALL the SEO software YOU CANT afford:
    Ultimate SEO Pack
    SENuke & Grscraper, and dozens more! $40 a month!
    • Profile picture of the author adlene
      adlene
      adlene
      Profile picture of adlene
      adlene
      Posts: Threads: Thanks: Account age: less than a second
      Originally Posted by ExploringInfinity View Post

      Wow, that's incredible and probably quite scary!

      GOod luck with it, it looks like you've found yourself a career.

      Yea I think so but the truth I'm so scared
      • Profile picture of the author John Durham
        John Durham
        John Durham
        Profile picture of John Durham
        John Durham
        Posts: Threads: Thanks: Account age: less than a second
        Originally Posted by adlene View Post

        Yea I think so but the truth I'm so scared
        Show him a plan of how you can outsource to a vast network of professionals at your disposal, and draw him up projections on how you plan to profit... if all else fails , tell him the truth, say "I see the potential too but Im not sure where to take it..." and let him get involved with the creation of the idea itself... in fact tell"ME" your business plan....

        What exactly is this guy investing in?

        Is he investing in YOUR business?

        ...and YOUR business is hooking up offline clients with SMS campaigns?

        (In which case, I wouldnt sell 5% of my business for 30k...) If he wants a huge percentage you'd be better off to decline, or tell him you'll think about it later.

        Offline is TOO hands on to give half your profit to a silent partner.

        One time I had an owner of a Chinese restaurant hear about a biz plan /idea I had discussed with a friend.

        Next think you know this guy is wanting to meet with me, and hands me a 10k check... which at the time I couldnt resist....

        He was the biggest pain in my butt for the next year... always demanding answers... wanting to get involved in decisions he wasnt qualified to make...

        I move faster alone... better to have "project" partners, who bring "resources" instead of "Money", more fair for everyone involved. This is how the new gen does biz. Everyone pulls their weight.

        Ps. Be more interested in how he can help you grow your business than his money, then it will be in clear perspective. Investors get "interest"... partners have to bring more than money to the table.
        • Profile picture of the author adlene
          adlene
          adlene
          Profile picture of adlene
          adlene
          Posts: Threads: Thanks: Account age: less than a second
          Originally Posted by John Durham View Post

          Show him a plan of how you can outsource to a vast network of professionals at your disposal, and draw him up a business plan, show him projections and how you plan to profit... if all else fails , tell him the truth, say "I see the potential too but Im not sure where to take it" and let him get involved with the creation of the idea... in fact tell"ME" your business plan....

          What exactly is this guy investing in?

          Is he investing in YOUR business?

          ...and YOUR business is hooking up offline clients with SMS campaigns?

          (In which case, I wouldnt sell 5% of my business for 30k...) If he wants a huge percentage you'd be better off to decline, or tell him you'll think about it later.

          Offline is TOO hands on to give half your profit to a silent partner.

          One time I had an owner of a chinese restuarant hear about a biz plan /idea I had discussed with a friend.

          Next think you know this guy is wanting to meet with me, and hands me a 10k check... which at the time I couldnt resist....

          He was the biggest pain in my butt for the next year... always demanding answers... wanting to get involved in decisions he wasnt qualified to make...

          I move faster alone... better to have "project" partners, who bring "resources" instead of "Money".
          Hi,
          thank you for your comments I really appreciate it . theoretically I know everything regarding offline on line business as well sms marketing lately but i never took action the first action i took lead me to this situation .
          He wanted to invest on my business and provide me with all i need from an office to traditional advertising campaigns to leads ..etc .
          like you mention I'm not sure what percentage of the business he wants 5%, 20% or 50% as i have no business yet .
          I'm a little scared I'll start and spend that much money and fail that's my biggest concern I mean at the end its a venture I sure will do my best to succeed I guess i'm just not ready for this kind of proposition all I wanted was a $200 deal to start up not a 30k deal on the table kind of huge and shocked me .
  • Profile picture of the author FreeBird85
    FreeBird85
    FreeBird85
    Profile picture of FreeBird85
    FreeBird85
    Posts: Threads: Thanks: Account age: less than a second
    That's great news!

    You should find out what he wants for his 30k exactly. Does he just want to be a 50/50 partner? Does he want to own the business and have you run it?
    Signature

    • Profile picture of the author adlene
      adlene
      adlene
      Profile picture of adlene
      adlene
      Posts: Threads: Thanks: Account age: less than a second
      Originally Posted by FreeBird85 View Post

      That's great news!

      You should find out what he wants for his 30k exactly. Does he just want to be a 50/50 partner? Does he want to own the business and have you run it?
      He sees big potential in the business and he was asking me where do i operate i told him everything is online all i need is a computer and internet he told me would be great if i have a office and business name ..etc this conversation leads to questions and finally the proposition of financing my business from a to z from office to equipment to marketing ...etc .

      by the way i bring the 30k i said it may cost 20 to 30 to set up the whole business ( including sms white labeling )

      we didn't talk about shares yet or what kind of partnership .
  • Profile picture of the author iAmNameLess
    iAmNameLess
    iAmNameLess
    Profile picture of iAmNameLess
    iAmNameLess
    Posts: Threads: Thanks: Account age: less than a second
    You better get this in writing and accept 0 liability with this because this can go sour very easily.
    Signature
    • Profile picture of the author adlene
      adlene
      adlene
      Profile picture of adlene
      adlene
      Posts: Threads: Thanks: Account age: less than a second
      Originally Posted by iAmNameLess View Post

      You better get this in writing and accept 0 liability with this because this can go sour very easily.

      Hi,
      I red pretty much every post you posted on other sms threads and would like you explain more about 0 liability ? I appreciate your help
      • Profile picture of the author iAmNameLess
        iAmNameLess
        iAmNameLess
        Profile picture of iAmNameLess
        iAmNameLess
        Posts: Threads: Thanks: Account age: less than a second
        Originally Posted by adlene View Post

        Hi,
        I red pretty much every post you posted on other sms threads and would like you explain more about 0 liability ? I appreciate your help
        Well, here is the thing, I am 100% against partnerships. They don't work, most of the time, and they get messy. If you take his money, you personally should not be signing anything, you need to incorporate. $300-400 to incorporate is much better than you personally being sued for $30,000 a year from now. You can assign maybe 20% shares to him, have someone you trust have 29% of the shares and you have the remaining amount. Otherwise, you need to plan on paying him $3,000 a month, to buy him out of the deal. When I first started I wasn't making 3 grand a month, but it might be possible for you since you have the start up capital.

        Get a contract... This is where things really get shady and you need to cover yourself. If he gets out of line you need to incorporate in another state to absorb your current corporation to dull him down.

        A 30K deal is a big deal... but the difference here is that he is not a 30K client... he is a 30K investor, right? You don't need that kind of start up at first anyway. I would really reconsider this, or use a big chunk of money for an attorney.
        Signature
        • Profile picture of the author adlene
          adlene
          adlene
          Profile picture of adlene
          adlene
          Posts: Threads: Thanks: Account age: less than a second
          Originally Posted by iAmNameLess View Post

          Well, here is the thing, I am 100% against partnerships. They don't work, most of the time, and they get messy. If you take his money, you personally should not be signing anything, you need to incorporate. $300-400 to incorporate is much better than you personally being sued for $30,000 a year from now. You can assign maybe 20% shares to him, have someone you trust have 29% of the shares and you have the remaining amount. Otherwise, you need to plan on paying him $3,000 a month, to buy him out of the deal. When I first started I wasn't making 3 grand a month, but it might be possible for you since you have the start up capital.

          Get a contract... This is where things really get shady and you need to cover yourself. If he gets out of line you need to incorporate in another state to absorb your current corporation to dull him down.

          A 30K deal is a big deal... but the difference here is that he is not a 30K client... he is a 30K investor, right? You don't need that kind of start up at first anyway. I would really reconsider this, or use a big chunk of money for an attorney.
          Thank you for your explanation I know it wouldn't be that easy especially with legal stuff. 30k is a lot of money I wouldn't need that much to start and never really thought i would be in such situation my wildest dream was to close a $ 200 deal at a time and grow from there and since this opportunity pop up on me from no where I 'm just thinking about it and seeking advices from you guys I appreciate your advices and comments
        • Profile picture of the author criniit
          criniit
          criniit
          Profile picture of criniit
          criniit
          Posts: Threads: Thanks: Account age: less than a second
          Originally Posted by iAmNameLess View Post

          Well, here is the thing, I am 100% against partnerships. They don't work, most of the time, and they get messy. If you take his money, you personally should not be signing anything, you need to incorporate. $300-400 to incorporate is much better than you personally being sued for $30,000 a year from now. You can assign maybe 20% shares to him, have someone you trust have 29% of the shares and you have the remaining amount. Otherwise, you need to plan on paying him $3,000 a month, to buy him out of the deal. When I first started I wasn't making 3 grand a month, but it might be possible for you since you have the start up capital.

          Get a contract... This is where things really get shady and you need to cover yourself. If he gets out of line you need to incorporate in another state to absorb your current corporation to dull him down.

          A 30K deal is a big deal... but the difference here is that he is not a 30K client... he is a 30K investor, right? You don't need that kind of start up at first anyway. I would really reconsider this, or use a big chunk of money for an attorney.
          The guy wants to invest $30,000 in a business that dosen't even exist yet and you think thats worth 20%? That would mean you think the value of a business that does not have a single client is worth $150,000?

          This is the problem most people who get investors when the business first starts up. The startup thinks that the company is worth 100's of thousands of dollars and that they can take investments in exchange for a small amount of shares. Nothing is further from the truth. Before you even consider accepting the investment you have to know how much of a share this guy wants. Unless he is crazy it will be ATLEAST 51% of the company.

          Now think about how much money you really need to start this thing up. $30,000 is a ton of money and is a great opportunity, but ask yourself are you really willing to give up control of your company? Do you REALLY need $30,000 to start this up or can you do it for a couple thousand? Or even a couple hundred? (Just a FYI I started my SMS marketing company 6 months ago for $600 and now have over 150 clients and am bringing in quite a bit of money. I own 100% of my company and didn't need any investors or outside help)

          Sometimes a startup, even though they are offered funding, dosen't need it and can do just as well or even better without it.

          In the end it is something you are going to have to decide for yourself. But just know that it is possible to start an SMS marketing company with only a couple hundred dollars...I'm living proof.

          PS: If your wondering if I am just talking out of my *** this is what I got my degree in.

          PPS: If you have any questions about how to set up and run successful campaigns feel free to email me at stevie.brodsky at gmail dot com I would love to help you out!
          Signature
          • Profile picture of the author mrcouchpotato
            mrcouchpotato
            mrcouchpotato
            Profile picture of mrcouchpotato
            mrcouchpotato
            Posts: Threads: Thanks: Account age: less than a second
            Something smells fishy.

            I don't think this guy is investing in "your" SMS business. I think he's investing in his own SMS business and will be paying you $30,000 to get it up and running. Then once it's successful, he'll be saying "bye bye" to you.

            Be very cautious with this one.
            Signature
            Let Me Show You How You Can Turn Your
            Existing PLR CONTENT Into CASH MONEY
            In Dozens Of Different Ways!
            CLICK HERE TO FIND OUT
            • Profile picture of the author adlene
              adlene
              adlene
              Profile picture of adlene
              adlene
              Posts: Threads: Thanks: Account age: less than a second
              Originally Posted by mrcouchpotato View Post

              Something smells fishy.

              I don't think this guy is investing in "your" SMS business. I think he's investing in his own SMS business and will be paying you $30,000 to get it up and running. Then once it's successful, he'll be saying "bye bye" to you.

              Be very cautious with this one.
              Hello,
              maybe you are right or maybe he just saw an opportunity he want to be apart of the guy own many franchises restaurants and huddle houses and what bring the proposition in the table is my portable office a laptop and a phone he asked me questions , who i work for where my office at ..etc that lead to the proposition the 30k number was out from my mouth I told him it may cost that much I even don't know why i said that figure maybe got exited at a time and had that flash forward for a big start up , with an office , a couple of salesmen a secretary ( why not ) ..etc .afterwards i start thinking clearly and found that it's bigger then that there will be legal stuff, there will be duties ,responsibilities, ...etc and here i'm here with you seeking advices and guidance .

              thank you
          • Profile picture of the author adlene
            adlene
            adlene
            Profile picture of adlene
            adlene
            Posts: Threads: Thanks: Account age: less than a second
            Originally Posted by criniit View Post

            The guy wants to invest $30,000 in a business that dosen't even exist yet and you think thats worth 20%? That would mean you think the value of a business that does not have a single client is worth $150,000?

            This is the problem most people who get investors when the business first starts up. The startup thinks that the company is worth 100's of thousands of dollars and that they can take investments in exchange for a small amount of shares. Nothing is further from the truth. Before you even consider accepting the investment you have to know how much of a share this guy wants. Unless he is crazy it will be ATLEAST 51% of the company.

            Now think about how much money you really need to start this thing up. $30,000 is a ton of money and is a great opportunity, but ask yourself are you really willing to give up control of your company? Do you REALLY need $30,000 to start this up or can you do it for a couple thousand? Or even a couple hundred? (Just a FYI I started my SMS marketing company 6 months ago for $600 and now have over 150 clients and am bringing in quite a bit of money. I own 100% of my company and didn't need any investors or outside help)

            Sometimes a startup, even though they are offered funding, dosen't need it and can do just as well or even better without it.

            In the end it is something you are going to have to decide for yourself. But just know that it is possible to start an SMS marketing company with only a couple hundred dollars...I'm living proof.

            PS: If your wondering if I am just talking out of my *** this is what I got my degree in.

            PPS: If you have any questions about how to set up and run successful campaigns feel free to email me at stevie.brodsky at gmail dot com I would love to help you out!
            Hello Steve,

            thank you for your comments and advices . I know i don't need that much money to start as matter of fact i have offers from many sms white label providers including you i sent you an email couple of days ago and received your offer you don't remember me ? you should remember your future business partners anyway like i said I'm into a situation where i had no plans for nor even thought about in my wildest dreams . It's just an offer someone offered me while i was offering him an offer things kind of went fast and get to the point where the client was more interested Or saw an opportunity on this business model and he offered to be apart of it
            I'm here for advices and help i sure wont do something i'll regret in future same time i don't want to pass an opportunity that came to me in a golden plate .
            • Profile picture of the author criniit
              criniit
              criniit
              Profile picture of criniit
              criniit
              Posts: Threads: Thanks: Account age: less than a second
              Originally Posted by adlene View Post

              Hello Steve,

              thank you for your comments and advices . I know i don't need that much money to start as matter of fact i have offers from many sms white label providers including you i sent you an email couple of days ago and received your offer you don't remember me ? you should remember your future business partners anyway like i said I'm into a situation where i had no plans for nor even thought about in my wildest dreams . It's just an offer someone offered me while i was offering him an offer things kind of went fast and get to the point where the client was more interested Or saw an opportunity on this business model and he offered to be apart of it
              I'm here for advices and help i sure wont do something i'll regret in future same time i don't want to pass an opportunity that came to me in a golden plate .
              I hear ya man. Haha sorry for not recognizing your name. I haven't matched up peoples names on WF with their emails

              Best of luck figuring out what your going to do with this offer! What ever you do keep us informed!
              Signature
          • Profile picture of the author iAmNameLess
            iAmNameLess
            iAmNameLess
            Profile picture of iAmNameLess
            iAmNameLess
            Posts: Threads: Thanks: Account age: less than a second
            Originally Posted by criniit View Post

            The guy wants to invest $30,000 in a business that dosen't even exist yet and you think thats worth 20%? That would mean you think the value of a business that does not have a single client is worth $150,000?
            Hmm... yeah, I do. LOL. Point is, if the dude is incorporated before making any kind of deal, then he is offering shares, he isn't offering a buy out. That is why he will have to negotiate that. I wouldn't give him any more than 20%, in fact that is being generous.

            This is the problem most people who get investors when the business first starts up. The startup thinks that the company is worth 100's of thousands of dollars and that they can take investments in exchange for a small amount of shares. Nothing is further from the truth. Before you even consider accepting the investment you have to know how much of a share this guy wants. Unless he is crazy it will be ATLEAST 51% of the company.
            This isn't up to the guy investing... this is up to the OP, he is the decision maker, not the guy with the 30K. If he plays his cards right he could get away with less than 20%.

            In the end it is something you are going to have to decide for yourself. But just know that it is possible to start an SMS marketing company with only a couple hundred dollars...I'm living proof.
            Don't know about the proof part, but it is true, you don't need thousands to start out.

            PS: If your wondering if I am just talking out of my *** this is what I got my degree in.
            Ehh, I liked you until you relate knowledge with a degree. You should know as well as anybody else, theory and practice are totally different. How much of your degree do you actually use?
            Forget about theory, and what you learn in books, this is the art of the deal, art of negotiation mixed with some street smarts.

            The OP needs to incorporate himself, do you disagree? If so, I don't really have anything to say, it is just something he really needs to do anyway, but especially if there is a deal like this and he is just starting out. Don't issue out more than 20% shares to an individual. This isn't a matter of what the investor wants, you don't need the investor, you can do this on your own and start out with nothing. I started from $0. Do some demonstrations if you want, get a free trial through trumpia or the many other providers, and get clients so you can afford the reseller, and keep building.

            Like I said earlier, don't accept a partnership. Don't give him more than 20% shares, or if you want, give him 49% out of the 5,000-25,000 you get when you file, then set up an additional 25K shares to yourself to dilute his ownership. There are many ways to keep control, while giving him the illusion of power. Also, just like I said before, this is where it gets shady... you're going to have to be cut throat when it comes to deals like this or else you will be screwed in the end.

            If someone came along, and wanted to invest in a new SMS idea I have... and had 30K, would I do it on my own or take the 30K? I would take the 30K, make it back, offer a buyout of his shares, if he or she denies and causes problems, then I absorb the corporation through another corporation.

            File to incorporate... Get an attorney... go to your local court house and spend about 10 hours a week in the law library and study up! It will benefit you more than anything.
            Signature
            • Profile picture of the author adlene
              adlene
              adlene
              Profile picture of adlene
              adlene
              Posts: Threads: Thanks: Account age: less than a second
              Originally Posted by iAmNameLess View Post

              Forget about theory, and what you learn in books, this is the art of the deal, art of negotiation mixed with some street smarts.

              The OP needs to incorporate himself, do you disagree? If so, I don't really have anything to say, it is just something he really needs to do anyway, but especially if there is a deal like this and he is just starting out. Don't issue out more than 20% shares to an individual. This isn't a matter of what the investor wants, you don't need the investor, you can do this on your own and start out with nothing. I started from $0. Do some demonstrations if you want, get a free trial through trumpia or the many other providers, and get clients so you can afford the reseller, and keep building.

              Like I said earlier, don't accept a partnership. Don't give him more than 20% shares, or if you want, give him 49% out of the 5,000-25,000 you get when you file, then set up an additional 25K shares to yourself to dilute his ownership. There are many ways to keep control, while giving him the illusion of power. Also, just like I said before, this is where it gets shady... you're going to have to be cut throat when it comes to deals like this or else you will be screwed in the end.

              If someone came along, and wanted to invest in a new SMS idea I have... and had 30K, would I do it on my own or take the 30K? I would take the 30K, make it back, offer a buyout of his shares, if he or she denies and causes problems, then I absorb the corporation through another corporation.

              File to incorporate... Get an attorney... go to your local court house and spend about 10 hours a week in the law library and study up! It will benefit you more than anything.
              Thank you for all the info really I appreciate you come here and take the time and comment on my thread as well other sms threads on the forum .
              I'll look into this incorporate thing and do some researches and present my final deal i like what you said i'm in control here if he agrees to my terms and shares ..etc his start up money is a big push and we go ahead with legal stuff if he disagree ohh well .
              my plan was to go pitch and sell my services to local businesses some deny me some jump in and step by step i get to where i want to .
              • Profile picture of the author iAmNameLess
                iAmNameLess
                iAmNameLess
                Profile picture of iAmNameLess
                iAmNameLess
                Posts: Threads: Thanks: Account age: less than a second
                Originally Posted by adlene View Post

                Thank you for all the info really I appreciate you come here and take the time and comment on my thread as well other sms threads on the forum .
                I'll look into this incorporate thing and do some researches and present my final deal i like what you said i'm in control here if he agrees to my terms and shares ..etc his start up money is a big push and we go ahead with legal stuff if he disagree ohh well .
                my plan was to go pitch and sell my services to local businesses some deny me some jump in and step by step i get to where i want to .
                That is 100%, the outlook you should have. Your plan is to go pitch and sell services, whether you have 30K start up or not! You control your own destiny.
                Signature
            • Profile picture of the author criniit
              criniit
              criniit
              Profile picture of criniit
              criniit
              Posts: Threads: Thanks: Account age: less than a second
              Originally Posted by iAmNameLess View Post

              Originally Posted by criniit
              The guy wants to invest $30,000 in a business that dosen't even exist yet and you think thats worth 20%? That would mean you think the value of a business that does not have a single client is worth $150,000?
              Hmm... yeah, I do. LOL. Point is, if the dude is incorporated before making any kind of deal, then he is offering shares, he isn't offering a buy out. That is why he will have to negotiate that. I wouldn't give him any more than 20%, in fact that is being generous.
              Good luck, it's nieve to think that you have a newly incorporated company (he needs to incorporate either way) with no clients, and no proprietary technology is worth anything valuation wise. If he can negotiate and keep 51% of the company and get the $30,000 that is freaking awesome! More power to him. I am just saying that expect the investor to want atleast 51%.


              This is the problem most people who get investors when the business first starts up. The startup thinks that the company is worth 100's of thousands of dollars and that they can take investments in exchange for a small amount of shares. Nothing is further from the truth. Before you even consider accepting the investment you have to know how much of a share this guy wants. Unless he is crazy it will be ATLEAST 51% of the company.
              This isn't up to the guy investing... this is up to the OP, he is the decision maker, not the guy with the 30K. If he plays his cards right he could get away with less than 20%.
              See above


              In the end it is something you are going to have to decide for yourself. But just know that it is possible to start an SMS marketing company with only a couple hundred dollars...I'm living proof.
              Don't know about the proof part, but it is true, you don't need thousands to start out.
              Its true, we could all be liars I suppose, but you definatly don't need thousands to start this company up. I started mine up for 600$ and that included incorporating and developing a white label service (though I can program myself so that saved a bit)


              PS: If your wondering if I am just talking out of my *** this is what I got my degree in.
              Ehh, I liked you until you relate knowledge with a degree. You should know as well as anybody else, theory and practice are totally different. How much of your degree do you actually use?

              I agree that theory and book learning is completely different than real world experience. But I got my degree in entrepreneurship and the majority of my classes were managing actual start ups. pitching business plans to VC's, finding angel investors, ect. I actually walked out of school with half a million in VC funding for a business that completely tanked, lol but thats another story. The only reason I brought up the degree was to explain that I had experience dealing with high power VC and other investors. Probably should have mentioned that in my previous post.


              Forget about theory, and what you learn in books, this is the art of the deal, art of negotiation mixed with some street smarts.

              The OP needs to incorporate himself, do you disagree? If so, I don't really have anything to say, it is just something he really needs to do anyway, but especially if there is a deal like this and he is just starting out. Don't issue out more than 20% shares to an individual. This isn't a matter of what the investor wants, you don't need the investor, you can do this on your own and start out with nothing. I started from $0. Do some demonstrations if you want, get a free trial through trumpia or the many other providers, and get clients so you can afford the reseller, and keep building.

              I agree 100% he needs to incorporate. Which only costs $100-200 depending on which state hes in. Go to your states secretary of state's website, it will all be layed out on there as well as the ability to file online.

              If I was him I wouldnt take the investment and keep 100% ownership. You only need a couple hundred to start out right and you can grow from there, why split the profits when you really don't need it?

              Like I said earlier, don't accept a partnership. Don't give him more than 20% shares, or if you want, give him 49% out of the 5,000-25,000 you get when you file, then set up an additional 25K shares to yourself to dilute his ownership. There are many ways to keep control, while giving him the illusion of power. Also, just like I said before, this is where it gets shady... you're going to have to be cut throat when it comes to deals like this or else you will be screwed in the end.

              If someone came along, and wanted to invest in a new SMS idea I have... and had 30K, would I do it on my own or take the 30K? I would take the 30K, make it back, offer a buyout of his shares, if he or she denies and causes problems, then I absorb the corporation through another corporation.

              File to incorporate... Get an attorney... go to your local court house and spend about 10 hours a week in the law library and study up! It will benefit you more than anything.
              Personally I would avoid the head ache and just start on your own. You don't need much else to start up other than a computer and a cell phone. Why add in the hassel of an investor that you may be at war with in a couple months? Just me .02
              Signature
  • Profile picture of the author xichabodx
    xichabodx
    xichabodx
    Profile picture of xichabodx
    xichabodx
    Posts: Threads: Thanks: Account age: less than a second
    How is this $30k going to be made payable...
    Monthly? For how long?
    And what, exactly, are you going to be doing for this large sum?
    • Profile picture of the author adlene
      adlene
      adlene
      Profile picture of adlene
      adlene
      Posts: Threads: Thanks: Account age: less than a second
      Originally Posted by xichabodx View Post

      How is this $30k going to be made payable...
      Monthly? For how long?
      And what, exactly, are you going to be doing for this large sum?
      the money is to start up a sms marketing company in my town. first i went to sell my sms services to this business turns out he wants to be part of the business it self .
      • Profile picture of the author xichabodx
        xichabodx
        xichabodx
        Profile picture of xichabodx
        xichabodx
        Posts: Threads: Thanks: Account age: less than a second
        Originally Posted by adlene View Post

        the money is to start up a sms marketing company in my town. first i went to sell my sms services to this business turns out he wants to be part of the business it self .
        Ah...gotcha.
        I thought it was just offering text marketing for his restaurant. I think that's really neat that you've been presented with the opportunity. As others have stated, be careful not to do something today that you'll regret down the road.

        Best of luck to you!!
        • Profile picture of the author TrumpiaTim
          TrumpiaTim
          TrumpiaTim
          Profile picture of TrumpiaTim
          TrumpiaTim
          Posts: Threads: Thanks: Account age: less than a second
          Adlene,

          What an interesting turn of events! Glad to see that Trumpia is working out quite well for you.

          As mentioned above, there's glaring concerns here about what is entirely involved and unless he's invested in your company or other companies prior, you really don't have a feel for what type of investor he is. What I mean by this is exactly what does he want from this investment percentage wise and ultimately is he the type to do a lot of micromanaging or the type that can see the bigger picture and allow you to run the business end while he's satisfied with monthly growth and revenue curves.

          This is an extremely interesting proposition and I'm excited to hear that you're in this position. Feel free to give me a ring tomorrow if you'd like to discuss one on one.

          - Tim
          888-255-4611 Ext 803
          Signature

          www.Trumpia.com

          Trumpia: The Most Completed SMS Text Messaging Software & API Solution.
          • Profile picture of the author adlene
            adlene
            adlene
            Profile picture of adlene
            adlene
            Posts: Threads: Thanks: Account age: less than a second
            Originally Posted by TrumpiaTim View Post

            Adlene,

            What an interesting turn of events! Glad to see that Trumpia is working out quite well for you.

            As mentioned above, there's glaring concerns here about what is entirely involved and unless he's invested in your company or other companies prior, you really don't have a feel for what type of investor he is. What I mean by this is exactly what does he want from this investment percentage wise and ultimately is he the type to do a lot of micromanaging or the type that can see the bigger picture and allow you to run the business end while he's satisfied with monthly growth and revenue curves.

            This is an extremely interesting proposition and I'm excited to hear that you're in this position. Feel free to give me a ring tomorrow if you'd like to discuss one on one.

            - Tim
            888-255-4611 Ext 803

            Hello tim,
            The thing is i have no company or business i just went to a restaurant trying to get me my first sms business client and it end up with this proposition nothing planed and never cross my mind i can be in such situation period.
            I used your platform and setup a campaign for this client at trumpia and things went to the situation i'm in where he was interested in investing in the business it self rather then promoting his restaurant business
            I'll give you a call tom thank you for your time .
  • Profile picture of the author mouseffects
    mouseffects
    mouseffects
    Profile picture of mouseffects
    mouseffects
    Posts: Threads: Thanks: Account age: less than a second
    Be very leery of partners you don't know. I've been in this business 12 years and picked up a partner because of his cash on the 2nd year. It took me 7 years to get rid of him (he was just weight and did nothing to progress the company). It was sheer misery and the money he brought to the table was NOT worth it.

    I'd be extra concerned because he offered the office and computers. Although that sounds good on the surface, it's a good way for him to keep checks on you and hold things over you if/when he doesn't like the way things are going. If you establish at his office space, then he gets upset and boots you out without any of your computers (or DATA), you have problems.

    It doesn't take a lot of money to start on your own; only time and a SYSTEM (a PLAN).

    You really need to sit down and etch out what you are going to do daily, monthly, etc. to make your company grow.

    * Who is going to sell and how many people are you going to visit a day/week?
    * Where are you going to get your leads?
    * Who is going to do the tech side and when?
    * Who and how are you going to do your billing?
    * How much new money do you NEED to bring in to make it on a weekly basis?
    * etc.

    Every day that you get out of bed you you should know your plan for that day. Otherwise, you might find that you are spending a lot of time reading e-mails, staying too long on the Warrior Forum or doing things other than growing.

    Every night, go though your plan and keep yourself accountable. make sure you did the day's work as planned.

    If you decide to bring this guy's money in, make sure you find out what kind of investment he's providing.

    * How does he want repayment?
    * When does he want repayment to start (is he giving you time to grow before wanting it back)?
    * How much does he want repaid (original amount, interest, etc.) above his share of the company?
    * Is he going to be a silent partner or going to have say-so rights?

    All of these questions are as important as how much "stock" he wants. Is he going to want a salary sometime? If so, when and how much (after XX% of growth or after XX% of time)?

    Get all of this in writing and use some of the money to have a lawyer make sure the paperwork is legal BEFORE you two sign it (or sign at the lawyer's office and have a copy kept there too).

    Trust me, a bad business partner is worse than a bad spouse (you can divorce the latter easier than you can get rid of someone who has given you money). It's been 3 years now since I got rid of mine and I'm still seeing ghosts every now and then.

    I'll work the rest of my life myself now. At least this way, if I fail, I know it's my fault; not some other jerk's.
    Signature

    Larry Perry
    innovedia
    www.innovedia.net

  • Profile picture of the author Transcripts
    Transcripts
    Transcripts
    Profile picture of Transcripts
    Transcripts
    Posts: Threads: Thanks: Account age: less than a second
    Adlene, I have no knowledge of SMS, but I've dealt with some interesting business people. I'd say - forge ahead for now, and forget about this guy for a while. Go ahead with your original plan of signing up clients and you keep 100 percent of the profit, and with little overhead like office space. By going ahead (without him) you can find out several things that will help you put this "partnership" offer in perspective.
    • Profile picture of the author James Sides
      James Sides
      James Sides
      Profile picture of James Sides
      James Sides
      Posts: Threads: Thanks: Account age: less than a second
      All I can say is Good for You! You stepped out of your comfort zone and have a very big success to show for it.

      Don't let the details scare you away from completing your deal.

      Good Luck

      James
      Signature

      "People will remain the same until the pain of staying the same is greater than the pain of change."

  • Profile picture of the author adlene
    adlene
    adlene
    Profile picture of adlene
    adlene
    Posts: Threads: Thanks: Account age: less than a second
    Hi,
    thank you guys for all your advices and comments, I'm taking notes and putting a plan together with all options you mentioned so later when we sit down I'll have an offer for him if he agrees that would be great for me if he refuses I still can do it one client at a time.
    Also I want to let you know guys i just set up a meeting with a volunteer score business consulting office close to my town will talk to them they might help a bit.
    will keep you updated
  • Profile picture of the author BlueGlobeSeo
    BlueGlobeSeo
    BlueGlobeSeo
    Profile picture of BlueGlobeSeo
    BlueGlobeSeo
    Posts: Threads: Thanks: Account age: less than a second
    Discuss the details with your investor, put it all in a contract. But what concerns me more is the fact that you have barely an idea on the business itself. So, I think you should worry more about how to start the business more and start learning about it asap. No point getting an investment that huge when later on you'd fail to deliver (and it's obvious, the investor is expecting results, 30k is no small deal). Best of luck and keep us updated.
    • Profile picture of the author cashtech29
      cashtech29
      cashtech29
      Profile picture of cashtech29
      cashtech29
      Posts: Threads: Thanks: Account age: less than a second
      Your investor is a business person... He knows how to start and maintain a business...

      I think, "He saw you coming, from a mile away"...
      I say this with all due respect, towards you...

      Either you are a damn good salesperson or he saw you coming...
      Especially If this was your first cold call, I would venture to thank, the latter...

      Listen adlene, I know that it looks good on the surface but your right,,, something strange is going on.

      Remember, he's in the captains seat, so it must be you.
      Again, with all due respect...

      I have been in business for the past 30 years (since 1980). (Nothing to do with Internet Marketing) and
      for me to offer the handout of $30,000.00 to just anyone on the street, after knowing them just one hour is not likely to happen...
      I would venture to say, that this deal is not likely to blossom, once he has Googled
      this business and finds our for himself that it is very easy to get into, with little money.
      So you may not have to worry about it anyway...

      If it does persist, I would say, decline the offer...
      If you did it once, you can do it again, after you have learned more about what it takes to create a business,
      along with a firm business model.

      Remember, this is not Internet marketing.
      This is real business, in the real world, dealing with real peoples money... Face to Face.

      You can always hide on the Internet (As many of the BAD marketers do).
      You can even sell bogus products and get away with it, but you can't hide on the streets...
      They know you, they know where you live, and so does law enforcement...

      It's a totally different world then what you may be accustomed to, on the Internet.

      I would decline, take a business course and learn all there is to learn about setting up and running a business.
      There are many courses that you can take at your local community collage.
      I would not advise shelling out thousands of dollars to an Internet Marketer for this course.
      (No offense to Internet Marketers)

      Go find your course in the real world, where real business is done.

      Just my two cents...

      Good luck.
      • Profile picture of the author adlene
        adlene
        adlene
        Profile picture of adlene
        adlene
        Posts: Threads: Thanks: Account age: less than a second
        Originally Posted by cashtech29 View Post

        Your investor is a business person... He knows how to start and maintain a business...

        I think, "He saw you coming, from a mile away"...
        I say this with all due respect, towards you...

        Either you are a damn good salesperson or he saw you coming...
        Especially If this was your first cold call, I would venture to thank, the latter...

        Listen adlene, I know that it looks good on the surface but your right,,, something strange is going on.

        Remember, he's in the captains seat, so it must be you.
        Again, with all due respect...

        I have been in business for the past 30 years (since 1980). (Nothing to do with Internet Marketing) and
        for me to offer the handout of $30,000.00 to just anyone on the street, after knowing them just one hour is not likely to happen...
        I would venture to say, that this deal is not likely to blossom, once he has Googled
        this business and finds our for himself that it is very easy to get into, with little money.
        So you may not have to worry about it anyway...

        If it does persist, I would say, decline the offer...
        If you did it once, you can do it again, after you have learned more about what it takes to create a business,
        along with a firm business model.

        Remember, this is not Internet marketing.
        This is real business, in the real world, dealing with real peoples money... Face to Face.

        You can always hide on the Internet (As many of the BAD marketers do).
        You can even sell bogus products and get away with it, but you can't hide on the streets...
        They know you, they know where you live, and so does law enforcement...

        It's a totally different world then what you may be accustomed to, on the Internet.

        I would decline, take a business course and learn all there is to learn about setting up and running a business.
        There are many courses that you can take at your local community collage.
        I would not advise shelling out thousands of dollars to an Internet Marketer for this course.
        (No offense to Internet Marketers)

        Go find your course in the real world, where real business is done.

        Just my two cents...

        Good luck.
        Hello sir,
        thank you for your advices and recommendations . I 'm not relaying on this offer to start my business It's just an option or an opportunity that pop up on me . the funny thing is the same questions was asked that led to this offer are the questions I'm afraid i'll be asked again and again from other businesses .
        1 lesson learnt from first prospect is without establishing a real business on your local area ( if you are going offline ) you will face leak of trust i think in order to really succeed you have to have a real business , a brand and an image . I work from home is amateurish , my office is on 5th street is professional and add credibility .
        I can go the hard way and i'm determined to this But knowing there are a opportunity to almost be there instantly is what all this about .
        For now I have few idea's and options and you guys rocks I thank you very much for your advices and i hope i'll make the right decision and thinks work out well.
  • Profile picture of the author OneLifeAway
    OneLifeAway
    OneLifeAway
    Profile picture of OneLifeAway
    OneLifeAway
    Posts: Threads: Thanks: Account age: less than a second
    Posts like yours sir make my day! Unfortunately I know very little about the subject. Keep us up to date on how everything turns out for you.
    • Profile picture of the author adlene
      adlene
      adlene
      Profile picture of adlene
      adlene
      Posts: Threads: Thanks: Account age: less than a second
      Originally Posted by OneLifeAway View Post

      Posts like yours sir make my day! Unfortunately I know very little about the subject. Keep us up to date on how everything turns out for you.
      Hi, glad that my post make your day , the beautiful thing about offline marketing is you never know what's for you i'm live example went for a 200 deal end up with a 30k proposition and i red somewhere in the forum a similar case where a warrior here worked with an offline real estate mogul and that turns him to a real estate multimillion business .
      the opportunities in this business are endless and i believe it has something to do with the saying its not what you know it's who you know.
      • Profile picture of the author cashtech29
        cashtech29
        cashtech29
        Profile picture of cashtech29
        cashtech29
        Posts: Threads: Thanks: Account age: less than a second
        Just a quick note Adlene.
        I know business and how business owners think.
        I deal directly with presidents (Business owners) who have multi-million dollar investments
        on a weekly bases.
        He may be leading you along, on a string, giving you high hopes
        and gaining more and more information from you, as a result.
        There are a lot of Phycological tricks that business owners can play on their
        employees or future prospects that can lead to their profit.
        Has he called you "Son" yet??? ha, ha...lol.

        Be careful with the knowledge that you have.
        Hold it close to your sleeve.
        He is not your friend!
        You are not his friend!

        You are not there to make a new friend... This is strictly business and he knows it.
        If he's on the up and up, he will respect you for keeping it that way.
        Smooth talking tycoons have lead to the demise of many-a-man just starting out.

        Just be careful and keep your intimate knowledge as secret as possible...
        ...For now, anyway.
        • Profile picture of the author Deidra Renee
          Deidra Renee
          Deidra Renee
          Profile picture of Deidra Renee
          Deidra Renee
          Posts: Threads: Thanks: Account age: less than a second
          Originally Posted by cashtech29 View Post

          Just a quick note Adlene.
          I know business and how business owners think.
          I deal directly with presidents (Business owners) who have multi-million dollar investments
          on a weekly bases.
          He may be leading you along, on a string, giving you high hopes
          and gaining more and more information from you, as a result.
          There are a lot of Phycological tricks that business owners can play on their
          employees or future prospects that can lead to their profit.
          Has he called you "Son" yet??? ha, ha...lol.

          Be careful with the knowledge that you have.
          Hold it close to your sleeve.
          He is not your friend!
          You are not his friend!

          You are not there to make a new friend... This is strictly business and he knows it.
          If he's on the up and up, he will respect you for keeping it that way.
          Smooth talking tycoons have lead to the demise of many-a-man just starting out.

          Just be careful and keep your intimate knowledge as secret as possible...
          ...For now, anyway.
          I was thinking the same thing. Sounds a little *suspect* to me, but it could happen. I would just need to put some money in my pocket first before I start giving out all this information. It's not that often that people just say *hey I know you came to sell me on this, but I'm going to give you $30,000 to sell other people on it too.* Just beware of the situation.
  • Profile picture of the author Luke Bishop
    Luke Bishop
    Luke Bishop
    Profile picture of Luke Bishop
    Luke Bishop
    Posts: Threads: Thanks: Account age: less than a second
    hearing "Investor" makes me cringe... don't doo it!!!
  • Profile picture of the author Macksheppard
    Macksheppard
    Macksheppard
    Profile picture of Macksheppard
    Macksheppard
    Posts: Threads: Thanks: Account age: less than a second
    Lots of cautious comments and that is well and fine. There is another side to this story. Maybe there is a tremendous opportunity being handed to you. A business person was impressed with you and he enlarged your vision from a small sale to possibly a large business. Be open to the opportunity and talk it through with him. I'm not saying don't be prudent.

    I see so many fear based comments that are nothing more than future based fantasies. Fact: A business person sees an opportunity to grow another business in an area he knows nothing about. He has offered to supply seed capital. that's the whole story.

    there is no reason that can't be a win/win with proper planning and execution.
    • Profile picture of the author adlene
      adlene
      adlene
      Profile picture of adlene
      adlene
      Posts: Threads: Thanks: Account age: less than a second
      Originally Posted by Macksheppard View Post

      Lots of cautious comments and that is well and fine. There is another side to this story. Maybe there is a tremendous opportunity being handed to you. A business person was impressed with you and he enlarged your vision from a small sale to possibly a large business. Be open to the opportunity and talk it through with him. I'm not saying don't be prudent.

      I see so many fear based comments that are nothing more than future based fantasies. Fact: A business person sees an opportunity to grow another business in an area he knows nothing about. He has offered to supply seed capital. that's the whole story.

      there is no reason that can't be a win/win with proper planning and execution.
      Hi,
      you are right with proper planing and execution a business can go far.
  • Profile picture of the author pmbrent
    pmbrent
    pmbrent
    Profile picture of pmbrent
    pmbrent
    Posts: Threads: Thanks: Account age: less than a second
    You should run with it and utilize resources when you run into road blocks. You have already got past the hardest part of starting a business, "financing." Everything else will fall into place.
    Signature
    Who Else Wants to Learn Everything About QR Codes AND How to Make From Them?

    Special WSO Price!

    • Profile picture of the author TheLocalCoach
      TheLocalCoach
      TheLocalCoach
      Profile picture of TheLocalCoach
      TheLocalCoach
      Posts: Threads: Thanks: Account age: less than a second
      I am thoroghly impressed with some of the comments on this post. In my 25 years of experience as an entrepreneur, I side with the folks who are advocating extreme caution with bringing on partners, especially ones you don't know very well and without an extremely detailed vision and operating manual. Speaking from personal experience, it is always better to go it alone, IF you can. I would proceed in executing your plan, while continuing discussions with this prospective investor, keeping him in the loop and on the hook, while you try and gain enough momentum to either do it on your own, or bring the business to a point where YOU need capital or an investor to take you to the next level. Don't get sucked in by sexiness of someone possibbly writing whatever you perceive to be a "big check". Good luck to you!
      Signature
      • Profile picture of the author Izesta
        Izesta
        Izesta
        Profile picture of Izesta
        Izesta
        Posts: Threads: Thanks: Account age: less than a second
        Call me crazy - and sometimes I am - but if I walked into a business to sell a product/service that I wasn't even totally familiar with, and the biz owner suddenly offered me $30k to invest in my new "thing", I would think I was on some kind of new-fangled reality TV show.

        It seems clear to me that you should get your act together before you take on investors because I bet that dude has his ducks lined up in a row.

        You don't need an office, you don't need $30k, & you probably don't need him.
  • Profile picture of the author Steven Carl Kelly
    Steven Carl Kelly
    Steven Carl Kelly
    Profile picture of Steven Carl Kelly
    Steven Carl Kelly
    Posts: Threads: Thanks: Account age: less than a second
    I'd tell the investor a very quick "thanks, but no thanks".
    Signature
    Read this SURPRISING REPORT Before You Buy ANY WSO! Click Here
    FREE REPORT: Split Test Your Landing Pages the Easy Way
  • Profile picture of the author adlene
    adlene
    adlene
    Profile picture of adlene
    adlene
    Posts: Threads: Thanks: Account age: less than a second
    well i guess things are getting even better . i just found out about a start up contest grant around 10k on my county sponsored by my local newspaper to apply for this i'll need my own system thinking twilio and a solid business plan. the business plan part i just outsourced it to fiverr the twilio part i have posted a thread to get idea's and suggestions as well any one interested on building their own system to benefit from the thread located here .

Trending Topics