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I need some help as I have some difficulty in structuring a business proposition for an additional partner.

we are starting one of the first online learning company which is region specific, two partners currently both with 50% equity each and the pre money valuation of the business is determined at US $ 1M and projected revenues by the end of the third year is in the range of US$ 9 M with a net margin of 20%. We have built the business, the prototype is ready and we are preparing for the launch in a month from now. We now need to set up a center with about 10 full time teachers in a different country and would like to partner with a local company in exchange for equity. This company will setup all infrastructure, recruit people and take care of all expenses associated with this center and also be partially involved in etting

The local company has agreed to hear our business proposition. could you please help me in structuring a business proposition?

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2 Answers

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How do you know a business valuation if you have not even launched your product? If the local company is willing to hear to your presentation, they are probably interested in two things at this point:

  1. What will be their commitment, resources, time, funding etc. and
  2. How would that benefit their business

If you can focus on these two issues, you'd be OK, I think.

Best of luck!

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While trying to figure out business proposition.. dont forget the risk mitigation planning.. sounds like you will be dependent on these local company for core service. What if they back out one fine day??

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