Debt, Equity and Control…Term Sheet Caution
This is an extension of my post last week… Many investors, eager to get started and get their company moving, will agree to terms that are not good business in the long run. It is understandable, and I have a client and friend that is fond of saying “we hope that is a problem” because if […]
Company Valuations When Raising Capital…
There is a ton of information available on the internet about how to value a business enterprise (including some on this blog). There is even a lot of information regarding the valuation of a pre-revenue startup during rounds of funding. Unfortunately, most of that information is not particularly helpful for startups unless they are in […]
What is the appropriate discount rate for a startup DCF valuation?
Several year ago, following a discussion with a local investment banker about the DCF valuation of a client where the topic of appropriate discount rate was a hot issue, I wondered what others were using and if there was a “right” rate.
Sales, Sales, Sales…
“I don’t care how good of a manager you are…you can’t manage ZERO to a profit.” Jim Watkins
The company financing life cycle…
Several years ago, I ran across this diagram of the financing cycle of startup companies on eandua.com and thought it was an elegant expression of where true seed stage capital fits in the overall scheme of our economy and the critical role it plays despite it’s relatively small dollar amounts.
Just Do It….
Nike has made the phrase “Just Do It” famous. They started with the sports arena and now it is a part of the American English lexicon. It applies to business as well.
Bonus E-Book: “20 Productivity boosting methods for the positive mind”
Excerpt: “Without a clear focus, it’s too easy to buckle under to distractions. Set targets for every day beforehand. Decide what you’ll do; then do it. We often discuss our goals as if they’re nothing but dreams. Actually, we can accomplish goals on a daily basis. Daily goals contribute to weekly goals. Weekly goals add […]
BONUS E-Book: “Pricing Strategies…the Number Don’t Lie”
Excerpt: “So here’s rule number one. If you have a great premium product, don’t be afraid to bump the price up. You do not by any means have to beat a competitors price to be competitive, in fact, by putting your price up, it’s quite possible that you’ll outsell your cheaper competition. Why? Simple. Because […]
ESOPs…is it time to look?
Our main clients are closely held businesses (and their owners), so business and individual planning are often tied at the hip in our office. Often that means a business sale isn’t the ideal exit or retirement solution for our clients, so we look hard for tax advantaged strategies that (at a minimum) won’t hurt the […]
Legal Checkup: “An ounce of prevention is worth a pound of cure”
A company legal checkup is similar to one that you would have with your personal physician. It’s evaluating the status of your business’s legal matters currently and prioritizing areas for improvement.
