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Need money? Read this!

Berkonomics

Bootstrapping: This term describes your ability to start a business with little investment and grow it using internally generated funds. You will realize much more from the ultimate sale of your business even if at a considerably lower price than if splitting the proceeds with investors. There is a lot to say about retaining control.

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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. Draconian terms?

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Be careful about equity and options!

Berkonomics

Here is the warning: The execution of equity allocations and of a good incentive program using equity is often mismanaged, damaging the corporate capitalization structure and even affecting the outcome of subsequent investment into the company. … Pricing your options: The price per share for option grants is also an important consideration.

Equity 156
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Take this test to predict your success:

Berkonomics

The dominant player in any niche controls pricing for all those under it, and often sets the risk profile for new entrants into the niche if the dominant player’s products or services fill the needs of customers at reasonable prices and quality. Email readers, continue here…] Have you created high barriers to entry?

Custom 156
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Think ahead when raising your early investments

Berkonomics

Sooner or later you may need to seek venture capital and accommodate the needs of the venture community in negotiating the terms of an investment. First, VC’s in general cannot invest in ‘S’ corporations or limited liability companies (LLC’s). What VC’s can and cannot do. How did you structure your first round? .

Invest 120
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Selling your business? Find the emotional buyer

Berkonomics

A financial buyer will analyze your numbers, past and forecast, to the n’th degree, and calculate the price based upon the result, after carefully comparing your numbers with those of others in the same and similar industries. There is a third class of buyer I discovered first hand when selling my company – the emotional buyer.

Pricing 600
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Can you guess 10 tests for your success?

Berkonomics

The dominant player in any niche controls pricing for all those under it, and often sets the risk profile for new entrants into the niche if the dominant player’s products or services fill the needs of customers at reasonable prices and quality. Email readers, continue here…] Have you created high barriers to entry?

Patents 286