How to start a business partnership if I give the labor and the investor the money?

Question

I am a restaurant worker, learned the business and someone wants to start a business with me. Right now I manage a small place, but don't have money to start anything on my own, so they would invest the money, but I don't know how to go on with it. Am I supposed to work on my own and the investor collect the profit without doing anything? How can we be fare on something like this? Did anyone have any experience like this before?

Answer 1

You need to be assured of your part in the company. I would not do it if there was not something to show you owned part of the business. My suggestion is try incorporating the business. When you incorporate shares of ownership are then divided, Make sure that is agreeable to both of you.

But your time is as valuable as your investors money. Beside it sounds like to me you are doing all the work and building the business for him. That also means the reputation of the restaurant, which is your reputation.

I know from working in the retaaurant business if the managment, food or service is not good the business will fail.

Good Luck!