Issa Asad Gives 3 Tips for Hiring a Silent Business Partner

Silent partners are the investors that want to invest and forget it. They will not be bothered about making decisions for an enterprise or spend their time trying to add more profits to the business.

Issa Asad Florida Entrepreneur
Issa Asad Florida Entrepreneur

They want to finance an entity and get outstanding revenue or returns from the investment.

“The silent partners risk their cash investing in your business and so they will require huge profits than mutual funds or stocks can offer,” said Issa Asad Florida businessman and entrepreneur since 1996. Mr. Asad is the CEO of Q Link Wireless, Hello Mobile, and Quadrant Holdings, all located in South Florida. He is also the author of 4 e-commerce and marketing e-books that can be purchased on Amazon.

You may, however, need them more than the other investors. This is because they will invest and just relax. They will not get involved in anything pertaining to your business so they are less stressful. This basically terms a silent partner as an investor. An investor has to have:

• Invested money
• Been promised a return
• Been dependent wholly in the efforts of another person in the business

Here, Issa Asad Gives 3 Tips for Hiring a Silent Business Partner:

Acquaint them as a partner

Letting in a money partner to the business as a partner has its advantages and disadvantages. It saves you excess legal work. The partner has satisfied registration issues and now can get a share of the business’ profits.

However, you must include them in the process of voting and making decisions. The potential hazard in this category is that you have to legitimately address their demands on a regular basis. The documentation of the relationship even needs to reflect that they are a partner to the business right from the start. It has to be understood that that was not a loan or interest is expected by the investor. They have real ownership of the business.

Viewing the Silent Partner as a Lender

Such a relationship would be ideal for your firm. The best part is about the fixed returns to the investor which means their investment at less risk. It is an efficient way of how to hire a silent partner for your business.

Again if you are considered a lender, you will not listen to their grievances about how you conduct the business. But then you must be willing to live with fixed return rates.

Lenders cannot share the profits of the venture but they can be changed into a partner and now have a say in the operations of the business

Catalogue a Shareholder Deal

Another awesome way on how to hire a silent partner for your business is by documenting a stockholder’s deal with the Securities and Exchange Commission. Here the silent partners will want more than just the fixed returns they receive.

They also want a share of the profits for the business without being bothered about how the business is run. The following is what to do in order to let in a money partner as a shareholder:

• Seek advice from experienced securities attorney to ensure a Regulation D offering is viable, and to select the best specific option for you.
• Ensure your attorney catalogues form D with the Securities and Exchange Commission in the given time.
• Make appropriate fillings in every state that you will present securities for sale.

Small-business owners are advised to seek guidance from experienced securities attorney since following Regulation D offering could results to huge losses if not appropriately applied.

Leave a Reply