BXBX NOVEL Chapter 246 Lothur's Business Model
Lothur smiled as he heard why they had invited him to dinner at this place. "Yes, I have no interest in joining any family... But if your family is interested in becoming a partner in others of my businesses, that might work out well."
"Other of your businesses?" Amelie asked.
"Yes, our agreement concerns the tailoring profession. But I have businesses like this vehicle that are not related to what is limited in our contract. So we can talk about those other things." He said as he finished eating his meal.
"And what do you look for in deals like that? Haven\'t you already said that you don\'t want to join our family?" Lina asked.
She and Amelie were interested in Lothur\'s products, but that was more as potential customers than as partners, or shareholders, like what he wanted.
For example, if the vehicle he had in mind worked, they would do business with him regarding several of these vehicles. That was their intention.
But he wanted someone to finance his business, and with that, they would get a share of the profits from his products.
In other words, they were utterly different relationships, which is why Lina asked her question.
Lothur then said. "I am looking for coins, of course. I want to find sponsors for my projects. Someone who will give me coins for a share of the profits of my business, and eventually when my products pay off, that same someone will receive dividends."
"Oh? So you want us to be part of your venture?" Amelie asked.
"Yes, that\'s right..." Lothur nodded as he smiled at them.
"And how much are we talking about? For example, how much would we have to put into your business to receive 50% of the profits?" The blonde woman found Lothur\'s methods interesting and questioned this.
"50%, huh?" Lothur tried to imagine how big his business could become. "Initially, you would have to contribute about 5 million silver coins. After that, you would commit to making investments proportional to your share of the business to ensure the expansion of our operation."
"If we needed 100 million silver coins for a project, you would have to invest 50% of that amount. That would be your responsibility as a partner."
"What?" The two rose from their seats while Annaliese spat out the drink she had in her mouth due to surprise at the shocking numbers Lothur had quoted.
"Hmm? Is there a problem?" He asked the three of them.
"5 million silver coins? Are you serious?" Lina asked in a slightly more agitated tone.
"Yes, of course," Lothur said naturally. "That\'s not much even."
"You see, those would be the amount for you to buy the initial rights to one of my products and have 50% of the profits relating to it. So as long as you don\'t give that up and the product behind the deal continues to exist, you would have that profit forever!"
A company or organization had no life expectancy, like the living things behind them. Because of this, there was plenty of time for a family like hers to profit in such a deal, and Lothur had said only the amount he wanted to earn as a prize in such a deal.
Since it was almost impossible to calculate the actual value of something that could exist forever and each person there could live for centuries, he used a strategy that involved a commitment of investments and an initial value. That ensured he would not sell his profits for too little and would still bring him some funds to start his business.
The two women understood Lothur\'s point, but they did not like having to commit to making additional investments.
"That is an extraordinary business you suggest..." Lina commented.
Amelia nodded in agreement. "Why can\'t we pay an initial amount and just enjoy the profits?"
Lothur laughed upon hearing that. "A business, whatever it is, has minimal growth potential when it depends only on investments from profits. But the market is cruel and does not forgive those who delay making their moves..."
"Therefore, those who want to grow need to contribute large amounts of capital when the product is doing well and has a growing demand. Only then can it grow and return even more significant profits."
"That\'s the point. As my partners, it would be your job to provide the necessary incentives for the product to grow. After all, you would be the most interested in its profits since you are the one who would have the 50%..."
The two understood that while Annaliese stood open-mouthed at her brother-in-law\'s intelligence in negotiating with these elderly women.
"Anyway, that\'s more or less the kind of deal I\'m looking for, and it will always be that way. So think about it. When I present you with something interesting, it will be something of the sort that you will have to consider." He remarked as he began to sample a dessert that the handmaids of that residence had just served.
The two women became silent after Lothur\'s words, thinking it over.
\'But that\'s not so bad...\' Amelie thought. \'With a deal like that, the chances of loss for our side would be limited to that amount paid initially. After that, we could consider the return on the deal to make new investments...\'
Lina considered. \'And this arrangement could guarantee a share of profits for the family that would last as long as our organization. That\'s something precious and for a low price and risk!\'
Amelie then asked after a few moments, interrupting Lothur and Annaliese\'s conversation. "And what would you do with that initial grant?"
Lothur smiled. "That amount is relative to the rights portion of the business, but it is not necessarily the cash from the business. It is my profit from creating and selling part of it. So, I could use it by investing in the product or spending it another way."
"But if I have 50% of the rights and I invest 1 million, then the holders of the other 50% of the business would have to do the same..."
"I see..." Amelie realized how smart Lothur was and would not bear the costs of his business alone.
"Haha, Lothur, you are smart." Lina laughed as she remembered that they were the ones who thought they could lure this \'naive\' young man into this family and commit to them.
But who knew, the man who was supposed to be only 20 years old was trying to get them to commit to him!
As Lothur smiled and winked at that black-haired woman, Amelie said. "Anyway, I get how you do business, so let\'s think about it further, and when you have that miniature, we\'ll talk about a deal."
Lothur thought of something upon hearing that and said. "I think I\'ll do a presentation event for that miniature..."
"Oh?" Annaliese looked at him in surprise since she had never heard him talk about it since he started planning this vehicle.
He explained to the three. "It will be easier if I gather all the people interested in my vehicle to present such a thing. Then, if all goes well, we can have an \'auction\' or something like that for each of the partners\' shares."
\'That way, I can make a lot more profit...\' He thought without saying anything as he saw that the three women seemed to agree with him.