How to participate in an investment correctly?

[freddydd]

Hello everyone, I have just started a business from Italy to Russia, selling products, I live with my girlfriend in Italy and her father lives in Russia, and I wanted to involve both of them

My added values are:

1. the conception of business idea,
2. "concept,
3. vision,
4. business plan,
5. foundations of the work plan,
6. studies and works (travel, to deal with suppliers, etc. choice of pieces
7. advanced marketing strategy,
8. supplier management,
9. provide an investment share. (50% of the budget prefixed)

Their added values are :
1) we will use my girlfriend company in Russia (individual entrepreneur) to pay less tax and speed it up,
2) the father would give 50% or a little more (for now he provided 50% of the whole budget prefixed unless further investments of personnel, transport, material purchase, etc if he will decide to invest more .) of the budgeted investment shares
3), search and find the rental of the place where to store and show products in Russia
4) look for a person who handles phone calls in Russia

He has already spent his share to start everything and is ready to invest further, when I specifically asked him where to transfer my shareholding he replies:

Freddy, I am afraid that at the initial stage of this trade we are going to face losses. In fact, as a businessman, I would not touch this particular trade. I am doing this only for my daughter and ready to see losses. It is not fair to involve your money. Once we see any profit I will be very glad to invite your money participation. But before this happens, let me carry these losses on my own. Thanks!

How do you interpret this answer? I would like to understand if I don't invest my share now what happens? ( I'm also ready to lose it), if I invest my share when the company "see any profit " (I think he meant reaching a BEP), wouldn't I also lose most of the earnings not investing now if the company will be profitable in the future?

Do he want to cheat me or really protect me?

Thanks a lot for your support!

 

[djbaxter]

Welcome to BizWarriors, freddydd

Bear in mind that we don't know anything about your girlfriend's father. That said, I don't think there is anything negative in his message about your investment. He seems to be just saying that for now this business is going to lose money and, while he is prepared to take those losses, he doesn't want to burden either his daughter or you with them.

There are not many people, not even family members, who would maker such a generous offer. My advice is to thank him for his generosity and let him know that you are ready to invest your additional funding when he thinks the time is right.

 

[freddydd]

thank you very much for your support! I still don't understand what would change in technical terms, if I invest earlier or later, what is more convenient? what are the possible causes?

My general idea is that if I invest first on the basis of the investment shares I will earn more, if I invest later I am more sure I will not lose money, but the future gains are minimal because the general assets have increased right?

 

[djbaxter]

My reading is this:

According to the reply you received from your girlfriend's father, you won't earn more by investing now because there are no profits yet, only losses. So he is saying just leave the investment to him for now; then you can invest once the company starts seeing an actual profit.

You might think about asking him directly, though. I don't think he is trying to cheat you. I think he's just trying to protect you.