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Old 08-25-2014, 06:09 PM
 
158 posts, read 237,541 times
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I'm not sure if this is the appropriate place to ask this question, but here goes.

Hypothetically, if two people had a good idea for a business and wanted to open it together, and this business requires a retail-ish store area and needs to be built which may cost close to $1M.

and hypothetically, if there are two people involved in this idea, one with basically the capital (or ability to take out a loan for the capital), and the other is interested in performing the day-to-day operations of the business, i.e., running the place,

Obviously party A who is putting up the money has a greater risk; however, party A also has the ability to sell the land and building if things go sour...

Party B is taking a risk of opportunity cost as (s)he will be quitting a full time, well-paying job to invest time into the business.

So does anyone have any idea on how to structure this business, money wise? Both parties are taking risk and obviously she be rewarded appropriately for the risk they are both taking. Obviously Party A should be the number one bread-winner and owner of the business. Or Party A could build the building and then rent the building to the business which is run by Party B and half owned by both parties. Any other ideas?
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Old 08-25-2014, 06:11 PM
 
7,237 posts, read 11,552,640 times
Reputation: 5595
I think you'll get a better response to your questions in the below forum:

//www.city-data.com/forum/business/
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