Remove event what-if
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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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If you must lease an office, make it a short one!

Berkonomics

The most difficult thing to deal with in any of these events – now or future – is the office lease. What is flexibility worth in higher cost? The greatest burden of either a growing company or one needing to retract and reduce expenses is the office lease – especially in these years after COVID and remote work. Rapid growth?

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Do you even know what questions to ask?

Berkonomics

Great executives and managers seem to intuitively know what they don’t know. But it is not at all uncommon to not even know what questions to ask. What could follow? Have you called your team to brainstorm the next steps in this ever-moving black swan event? The” black swan” event questions.

Email 156
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Have you heard the rule of the thirds?

Berkonomics

The reward for the entrepreneur, after years of effort, time and sacrifice, is measured by what portion of the total pie s/he retains at exit, how much the person continues to participate through that time, and how many other resources are brought in to get to that point. Nearly none, if statistics and experience are key to the answer.

Startup 240
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Don’t just raise money. Do it on good news!

Berkonomics

What if you have no good news to offer? It’s human nature for investors to want to buy into a fast growing future, proven by some event in the immediate past. While working toward good news events, some entrepreneurs plan to take in consulting work to pay some of the costs during the early stage of a company. So, here’s the rub.

News 156
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Finding “stinky clauses” in legal investment documents

Berkonomics

So, what does the latest tag–along investor do? But what if the principals find this at the last minute? What if it is the company attorney or entrepreneur that finds the stinky clause so very late in the game? So, it is a bet against the event made with chance on your side. Passively sign and hope for the best?

Invest 156
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My hard-earned lessons from negative exits.

Berkonomics

We ask ourselves “what if?”. Pilot-authors tell their stories in the first person, and all of us readers slow down to think while reading of these events, wondering “what if” or whether this could happen to me. So, what if that startup could not have raised funds? And these were emotional experiences to say the least.