My cousin called me to tell me about his new job. He is working to buy the company. He was asking me to invest with him in this venture.

I think he has the spirit and personality to make it work but I told him I wanted a business plan blah blah blah... He is stopping bye on thursday to lay it all out for me. I will have zero participation in this venture, much like a bank would make a loan.

What questions should I ask him?

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-Grumpy

Chicago Roofing Chicago Gutters

Id be sure to have it ALL in writing before agreeing to anything. I had to write a business plan the other day on schol and its had as far as the research and detail but wasnt all that bad. I'd get it in writing so that if you have questions you could refer to it and make sure he holds up to his end of the bargain and also to see how hes doing on his projections. A business plan will answer most of your questions.
Are you giveing a loan or buying a permanent piece of the company?

Yes I agree, all in writing 100%.

Doneem, At this point I am not sure... and what I mean is I will discuss with him what he is asking and I will decide what I want to do after he and I have talked on Wednesday. Let's assume for conversation sake that I will not receive stock, but only be a lender.

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-Grumpy

Chicago Roofing Chicago Gutters

So being a lender you will be paid back within ? number of years with a return of ? percent.

You decide what you should get out of the deal and and you two agree on it. Look through the idea and purposal and see if you think he can do what he promises, if not talk it through and see what you or he might be missing or just have opposite views on. He may think he can make so much money by doing thisbut you dont, therefore you may not think he can be as successful as he is predicting.
Above all, remember he's family, and even being family you can say no. It may be hard, or easy if you dont like him(joking), but I may not be a good idea to mix business and family that directly.

Yes doneem, for the ammount he has asked I have already decided to give him the money but shhhh don't tell him that I'd like to help him out because he is close family. Even if I see not a penny in reurn and justbreak even I will be happy... but shhhh don't tell him.

I told him he has to sell me the idea. I told him "I'm not sure, I need more info." I am going to make him think... think about all the things I didn't know when I started my first company. But I want to make this hard for him. Not impossible, but hard.

Worst case scenario... He is buying some equipment from the guy and I am making him put it up as collateror... So worst cast scenario I have some printing equipment for sale, and from the sounds of it, that would be more profitable for me I wish my cousin the best of luck, but I have never invested in anyoen elses busines other than my own.

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-Grumpy

Chicago Roofing Chicago Gutters