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A wealth individual would like to invest into a project where he would provide the funds and I would provide the management of the project. However, I am not too sure of the correct procedure to start and follow.

what is the step by step procedure such projects follow? (this project is not a small project by any means)

Financially I am very much tied up until some money is released where I can efficiently function. He has asked me for a letter of intent as a start. Assuming I prepare the LoI and send - Then what?

what is the step by step procedures to follow? thanks.

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Paperwork. Sounds like the project is a new business. Since you asked this question I would work with an accountant or lawyer to get your business created, allocate equity/ownership of any partners, outline initial investment in the company, articles of incorporation, etc. lots of paperwork. But you are most likely starting a business - not doing a project. – Ryan Doom Mar 28 '12 at 2:07
Thank you Ryan. My company is already registered but still negligible operations. ownership transfer is fine by me since i expect investors would like to control legality. To progress with this project I need to sit down with project consultants but before I call them i would like to clarify the steps needed prior to this. – Ram Mar 28 '12 at 12:49
Do you mean things like: Document your projects requirements, outline the overall goals of the project, write 'use case' scenarios... Stuff like that? Like the stuff you should prepare for your project that you will want to show consultants so they understand what you want to make? – Ryan Doom Mar 28 '12 at 22:06
Funding will be done by the person who lives abroad and knows very very well about the project so I do not need to convince him. This makes things easier in a way. the letter of intent is to give him a promise that I am willing to manage the project. The project is not small by any means and will require a top consultant to work on setup requirement, management structure, management of funds, etc. – Ram Mar 29 '12 at 1:41
the question is; What happens after the Letter of Intent? Bottom line is When will I be asking for the initial funds for the project? Till then i am tied with a waiting game and I am not too sure how to proceed. I am aware that we have to commit to sharing responsibilities and all and he has the money so for now i am the project manager and not a shareholder, etc. For me to free my time I need the financial support as if I am a full time employed.... benefits can come later and for now i do not care. – Ram Mar 29 '12 at 1:52

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The LOI only formalizes the venture that you and the investor will launch. The next step is the signing of the actual contract that will closely replicate the LOI. The LOI should lay out any revenue or payment agreements as well as your role in the company. If you are expecting some type of salary then have an employment agreement added to the contract documents.

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