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I may not have made a financial profit on this deal but I won!

I recently turned down a deal where I was able to offset 100% of my risk but it was wrong for the couple seeking the financial backing.
I meet with a veteran who was seeking a financial backer to purchase a franchise. They were offering to put all their saving down and sign a personal guarantee; they owned a home and other assets that would have offset my risk 100% by taking their home and other assets if the business failed. On paper this looked like a good deal for me but this couple had two small children. We all need to make a profit but I refuse to do deals where I may have to bankrupt a family if it fails. The business needs to be able to stand on it’s own or I will not do the deal!

 
This story has a happy ending!
 
I suggested that instead of buying the franchise and risking everything; take $5,000 from their savings and start a business doing exactly what the franchise would have done but start small and online. Then do not take the profits; reinvest the profits into additional inventory and advertising until they reach $150,000 invested (half the cost of the franchise) and at that point take profits. With this formula all they have risked is $5,000 and their time.
They listened to me and wrote thanking me for the advice and how keeping the money in their saving reduced the financial stress on their family.
I may not have made a financial profit on this deal but I won!
 
 

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