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Need money? Read this!

Berkonomics

Friends, family and fools: [Email readers, continue here…] This term, although pejorative, describes the typical mix of early investors in a small, young growing business. And even with the significant cost of credit card debt, many entrepreneurs aggressively use existing cards to finance a startup.

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Have you heard the rule of the thirds?

Berkonomics

Think of startups and early stage businesses whose entrepreneurs you know. 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. One: The entrepreneur. Two: Co-management.

Startup 240
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When should you go for equity financing?

Berkonomics

Here is a class of investor we’ve covered before, one usually focused upon you and less upon your business case. We’ll call these “inside angels.” There are other classes of equity investors for small or early stage businesses that we have not yet considered. Angel investment groups or funds. Friends and family investors.

Equity 156
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Are you thinking of the end game when managing your business?

Berkonomics

Most businesses fall into the class of those that can be sold someday to a willing buyer. Accepting venture or angel money is to create a contract between the investors and the entrepreneur that the business will someday be sold or even go public to create an exit for the investors.

Class 226
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Does your business need money? Read this!

Berkonomics

Email readers, continue here…] Bootstrapping: This term describes your ability to start a business with little investment and grow it using internally-generated funds. And even with the significant cost of credit card debt, many entrepreneurs aggressively use existing cards to finance a startup.

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Once again: Is it the jockey or the horse?

Berkonomics

Do they bet on the entrepreneur (jockey) or the business idea and plan (the horse)? If you are looking for money, this question will certainly come up in one form or another when you approach professional or organized angel or VC investors. Concentrate on a world class team. This is serious stuff. A more complex answer.

article thumbnail

Once again: Is it the jockey or the horse?

Berkonomics

Do they bet on the entrepreneur (jockey) or the business idea and plan (the horse)? If you are looking for money, this question will certainly come up in one form or another when you approach professional or organized angel or VC investors. Concentrate on a world class team. This is serious stuff. A more complex answer.