Am I being too nice? Please give advice.

amother

OP ↓

Today at 10:57 am

My friend and I want to start a business.
She thought of a business that seems to have a lot of potential. She got in touch with someone who we needed permission from and they gave it. Without their permission we wouldn't be able to open where I live.
My friend doesn't have money to put in but I have savings I would use. I told her its a loan and it needs to be paid back but if the business doesn't take off then I am out the money and she wont be able to pay me back.
She told me to go ahead with the business myself because she cant put any money in but it was her idea.
Am I being too nice by having her as a partner? I tend to do this because I feel bad for people who are struggling and tend to over help.

singleagain ↓

Today at 11:14 am

Perhaps don't put in your own money, but maybe the two of you should go to a bank to talk about a small business loan.

ETA. Going into business with friends can really change a relationship. So make sure everything is documented properly.

#BestBubby

Today at 11:21 am

If you risk your money it is not a loan but a partnership.

You would be entitled to a share in the business profits for life.

amother

Rose

Today at 11:26 am

I recommend the book "The Founder's Dilemmas: Anticipating and Avoiding the Pitfalls That Can Sink a Startup" by Noam Wasserman, it deals with such situations, gives insights and examples for what can work and what often fails.

amother

Eggplant

Today at 11:33 am

My father is a dayan on a beis din and advised me strongly not to enter any partnerships (and it's way worse with someone you are close to). It's not worth it.

I don't think it's nice for you to just take her idea- it's her idea and she already got the permission for it.

You can help her apply for a loan, you can help her brainstorm and be a sounding board- as a chessed to your friend.

amother

↑ OP ↓

Today at 11:38 am

She doesn't want to take out a loan because she will not be able to pay it back plus she doesn't have good credit.
She told me I should go ahead but I feel bad for "taking her idea"

↑ singleagain ↓

Today at 11:42 am

amother OP wrote:

She doesn't want to take out a loan because she will not be able to pay it back plus she doesn't have good credit.
She told me I should go ahead but I feel bad for "taking her idea"

That she doesn't want to take out a loan is interesting but I still didn't understand why you think you're too nice.

amother

Offwhite

Today at 11:48 am

Idea itself is nothing. If she would be so into it she would borrow money to start up. Also it's not just money usually, it's also time and energy. She does not want to go ahead with it but you do, no need to feel bad.

amother

↑ OP

Today at 1:40 pm

Everyone who said she could take a loan she cant. Not going to go into it but she cant take a loan and I understand why.
My question is am I being foolish for thinking to go into business with her using my savings.
I feel if we go into it together I would feel like I am supporting another yid who is struggling if that makes any sense.

↑ singleagain

Today at 1:41 pm

amother OP wrote:

I would not go into business with somebody cannot take out a loan especially not investing my own money. Maybe if you can find another investor and or go to a bank loan. Maybe put yourself as the primary but not there's risk that she will default.

yamz

Today at 1:50 pm

Your partnership doesn't have to be 50/50. She can be, let's say a 15% partner. If she doesn't have money to invest, how about her time and talents? That's her investment. This is only a decent idea if she is reliable, consistent, trustworthy and has a strong work ethic.

justforfun87

Today at 1:51 pm

How much is the investment? If she has bad credit and can't get loans it may mean she has mismanaged money in the past.

How is her work ethic? Ideas are one thing, putting it into a business is another. How does your husband feel about it?

amother

Brickred

Today at 2:10 pm

I can think of plenty of great ideas for businesses. But I would never bother expending the effort of trying to get one off the ground. I also think very few things are actually copyright, and just because she happened to think of it, doesn't mean she's the only one who could ever do that business.

amother

Pink

Today at 2:15 pm

amother Outerspace wrote:

if she believed enough in the business, she would take a loan

Sorry, that’s total nonsense. Not every business owner takes out loans.(speaking as a business owner)

amother

Tealblue

Today at 2:37 pm

My dh wanted to start a business but we didn't have the money and couldn't get a loan. Someone connected him with a guy who had the money. They became partners, the guy supplied the money for startup, dh was the brains of the business. Everything was clearly documented with a rav and lawyer. After a year, dh bought out the partner and is now the sole business owner.

newinbp

Today at 9:16 pm

amother OP wrote:

I hear you that you want to help another yid that is struggling.
However, it is necessary to draw a line when it comes to your savings.
I would help another yid in a different way. This sounds too too big.
You can give in a different yet equally beautiful way.