Where can i find information for investing etiquet?

i have a clothing line and different local people in my hometown want to invest. where can i find information to know things like: what percentage to give them, what are the investing options, and the like.Where can i find information for investing etiquet?I have never hear the term "investing etiquette" before, that is sort of funny.



When you own your own business it is purely up to you to offer investing options to potential investors. They will evaluate your offer and either take it or leave it. They may tell you you are crazy or something but you can tell them it's your business and that's how you value it!



I am not completely aware of your situation but I would state that you are certainly not going to want to give away a majority of the % ownership in your company to investors, otherwise they would control you. Anything you sell better add up to less than 50%!



As far as valuation goes, it's best to speak to a CPA who has experience valuing private businesses. That can sometimes be tricky because 1) a lack of control and 2) a lack of liquidity (a public market to resell their investment to) are factors that are difficult to put a price on. The CPA will probably give you some multiple like your business is worth roughly 5 times earnings. You just then do the math to determine how much a percentage is worth and how much you want to give away.



Depending upon the structure of the business you will also have to consult an attorney to draw up purchase documents, share certificates (if you are a corporation), etc.



One last thing - if you do sell part of your business to someone else MAKE SURE THAT A BUY/SELL AGREEMENT is in place. From Wikipedia:



"In the sale of a business, a buy-sell clause (or shotgun clause) in a shareholder agreement preserves continuity of ownership in the business and insures that everyone is fairly treated, the buyer as well as the seller. It is a binding contract between business partners or shareholders about the future ownership of the business. A buy-sell agreement is made up of several legally binding clauses in a business partnership or operating agreement (or it can be a separate agreement that stands on its own) that can control the following business decisions:



* Who can buy a departing partner's or shareholder's share of the business (this may include outsiders or be limited to other partners/shareholders);



* What events will trigger a buyout, and;



* What price will be paid for a partner's or shareholder's interest in the partnership and so on.



A buy-sell agreement may be thought of as a sort of "premarital agreement" between business partners/shareholders."

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