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If someone invest certain amount on my company and after a year I am able to return the exact capital with the profit, what will I do to that investor? Will that person still invest in my company? What if I have enough profit to continue my business, do I still need that investor? I have no experience in business whatsoever.

  • What do you mean "what will I do to that investor"? Are you asking how that person will feel about it? – BrenBarn May 13 '14 at 20:01
  • no not about the feelings. i mean will he still invest in my company considering i have enough profit to go through another year? you know i just borrow money from him because my capital is not enough – user15013 May 13 '14 at 20:03
  • I think that's still just a question about feelings. No one can tell you whether an individual investor will or won't decide to invest in your company. That depends on that individual investor. – BrenBarn May 13 '14 at 20:05
  • Hmmm... so he can stay then or quit.. Okay Thank You :) – user15013 May 13 '14 at 20:08
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    With no experience at all, why is an investor giving you money? – JTP - Apologise to Monica May 13 '14 at 20:23
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If someone invest certain amount on my company and after a year I am able to return the exact capital with the profit, what will I do to that investor?

Did the investor receive shares in the company for the money that was invested in the company? This is the big question here as if so then there isn't the need to return the money but rather grow the business so that the investor's shares are worth more.

Will that person still invest in my company?

You may need to consider what you mean by invest as generally there are a couple of ways to finance a business:

  1. Equity - Ownership of the company is sold to raise money to run the company.

  2. Debt - The company is lent money that is to be repaid over time.

Investing is usually the first case not the second.

What if I have enough profit to continue my business, do I still need that investor?

You wouldn't need the investor. However, you may want that investor as they could provide more funds, connections or other benefits to the company that may be worth considering here.

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    Example of the third point: In the hot startup companies, early investors don't expect their money back for quite some time. In fact, they only expect money to come back on a percentage of their investing portfolio - but they expect it big. In the mean time, they typically also provide a network to help make it go big. – Michael Deardeuff May 14 '14 at 4:42

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