What I always wanted to know-does the money the sharks pay go to the original owner of the company? Or directly into the business? It seems both have reasons why they would be. If I am giving up part of my company, it seems like I’d want to personally be compensated.
@@mrsdsparky great question! I’m sure various investor-business partnerships agree to different terms, but in general, the understanding is that the investor’s money goes directly into the business. Now, you could always decide to pay yourself a chunk of that money (same with any other money that the business generates), but the decision to reinvest to grow the business or take out money as a personal payout is a constant debate that business owners have to think through
@@blackduel that’s not what the video says? Overhead comes out of the overall business’ revenue. Then, if owners decide to pay themselves out from the remaining profits, then payouts will follow respective ownership
Its not that complicated. Loans at interest rates are just loans that need to be paid back within a time frame at an interest rate. Royalty is they get a percentage of profit until a certain amount or forever
