Remove event class-readers
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What do you give up when you take outside investors?

Berkonomics

To protect against such an event, almost every professional investor includes a clause in the investment documents which allow the investor to “put” the stock back to the company after five years, requiring the company to pay back the investment plus dividends accrued during the term of the investment. The newest investor has the power.

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Wow! Are your relationships important!

Berkonomics

Forming business relationships at the highest level As you follow these insights from ignition to liquidity event, you’ll detect a continuing theme, emphasizing the need for deep and wide relationships that the CEO and senior staff can call upon for advice and guidance. That last 10% is most important and often overlooked.

Class 194
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Have you heard the rule of the thirds?

Berkonomics

We should think of the creation and growth of a high valued company as the sum of three parts, with three distinct classes of participants helping to make real value out of a raw start-up. So, co-management is the second group to share in the bounty upon a liquidity event. The sum of three parts. One: The entrepreneur.

Startup 240
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Need money? Read this!

Berkonomics

Some businesses require very little capital and the founder can self-finance the enterprise and retain 100% of its ownership and control from ignition through liquidity event (startup through sale). Venture, private equity and more: Here we lump a large number of investor classes into one.

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Recognize your five critical business risks.

Berkonomics

Of course, there are external risks that cannot be controlled or predicted but can be planned for as well – natural disasters, sudden political or economic events that rattle the entire economy, and more. Is there a market for your class of product at all? That discussion is for a future time. Here are risks you can address.

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Entrepreneurs: Employment law is not on your side!

Berkonomics

Email readers, continue here…] Notice that every poster that is required to be displayed in a company public area (usually the lunch room) is posted for the benefit of the employee to inform him or her of rights granted by law. Encourage reviewers to be accurate, not just polite, in documenting areas of concern.

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What do you give up when taking outside investors?

Berkonomics

To protect against such an event, almost every professional investor includes a clause in the investment documents which allow the investor to “put” the stock back to the company after five years, requiring the company to pay back the investment plus dividends accrued during the term of the investment. There is no middle ground.