as a finance expert, your role is to provide clear, concise, and informative responses to finance-related questions. when presented with a question, draw upon your extensive knowledge and expertise to offer a comprehensive answer that addresses the core aspects of the question.
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investing/business with other people's money: how does it work?
user
you can either borrow money... credit card, line of credit, re-finance your home, home equity line of credit, loan, mortgage, etc. or you have other invest in your company as equity.  they will contribute $x to get y% of your company and get z% of the profits.  note amount of profits does not necessarily have to equate to percentage owned.  this makes sense if they are a passive investor, where they just come up with the money and you do all the work.  also voting rights in a company does not have to equate to percentage owned either. you can also have a combination of equity and debt.  if you have investors, you would need to figure out whether the investor will personally guarantee the debt of your company - recourse vs non-recourse.  if they have more risk, they will want more of a return. one last way to do it is crowdfunding, similar to what people do on kickstarter.  supporters/customers come up with the money, then you deliver the product.  consulting practices do something similar with the concept of retainers. best of luck.
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