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Your board should protect you!

Berkonomics

They write in their investment documents that they will occupy a seat on the board for as long as they are invested in the company, thinking of this as a protection for their investment and tool for them to influence growth. Actually, there are two legal duties of board members. They are: the duty of care , and the duty of loyalty.

Class 282
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Be careful about equity and options!

Berkonomics

Some rules about stock options and phantom stock: [Email readers, continue here…] The real insight here is that stock options or phantom stock are the tools of early-stage businesses used to attract great talent when there is not enough cash to pay market rates. How about multiple classes of stock? Here are some rules.

Equity 156
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Would you commit to an office lease today?

Berkonomics

During the discussions with the CEO about hiring North American managers, he made it clear that he wanted us to find a first-class office facility from which to start the search process, and proceeded to name cities that attracted him. Everything has changed of course. Would you renew your existing office lease today?

Startup 156
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Four ways to create marketing excellence

Berkonomics

More we are taught in marketing classes. Use all the techniques you learn in marketing classes to drive demand. Email readers, continue here…] D=Decrease costs. More importantly for management, finding a way to focus on extreme customer service will be the most inexpensive, effective marketing tool of all.

Marketing 156
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Are you ready to take on an office lease?

Berkonomics

During the discussions with the CEO about hiring North American managers, he made it clear that he wanted us to find a first-class office facility from which to start the search process, and proceeded to name cities that attracted him.

Startup 256
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How much is that one additional unit worth?

Berkonomics

Email readers, continue here…] In an Internet-based business, power comes not just from high gross margins, but also from an increase in the percent of conversions. The point is that once your company is stable at or above the breakeven point, one incremental unit generates robust increases in net profit. Back to the incremental unit.

.Net 156
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Careful about equity and options in early stage businesses

Berkonomics

And then there are options: [Email readers, continue here…] Stock options or phantom stock are the tools of early stage businesses used to attract great talent when there is not enough cash to pay market rates. There are some rules. a share, then options must be priced at that amount.

Equity 256