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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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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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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). And even with the significant cost of credit card debt, many entrepreneurs aggressively use existing cards to finance a startup.

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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. There are other classes of equity investors for small or early stage businesses that we have not yet considered. This class of investor typically writes checks from $50,000 to $250,000. Friends and family investors.

Equity 156
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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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VC investors: Don’t be greedy even if you can.

Berkonomics

First, the marginal exit event: Sometimes the end game or sale of the company is not a happy event for the early investors, including the entrepreneur or the founders. Promissory notes come before any equity, and most late equity investments come before early equity investments, even of the same class of security.

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A Serial Entrepreneur’s Take On Guy Kawasaki’s Enchantment

InfoChachkie

Although many are entertaining, most fail to provide entrepreneurs with a sufficient return on their time investment. Unfortunately, most business books do not offer entrepreneurs an adequate payoff. At the conclusion of Enchantment , Guy includes a 20-question test which enables readers to assess their persuasion capabilities.