Is 80% Good Enough?
This weekend, I read The 80% Solution – a great e-book by famed business coach Dan Sullivan in which he makes the case that “perfectionism” is a misunderstood and under-reported “enemy” of successful entrepreneurship. Per the title of his book, Sullivan’s suggestion to combat this is simple yet profound – just work to get a […]
Why NOT to Invest in VC – backed Companies
The typical wisdom regarding the appropriate financing course for a new company goes as follows: 1. An entrepreneur starts a company in classic “bootstrap” fashion – with a combination of sweat equity and their own financial resources. This usually consists of personal savings, credit cards, and small loans from relatives (Mom, Dad, Uncle Bob, etc.). […]
It Takes Many Good Deeds, and Only One Bad One…
“It takes many good deeds to build a good reputation, and only one bad one to lose it.” — Benjamin Franklin. Fannie Mae. Freddie Mac. Bear Stearns. Countrywide. IndyMac. Lehman. Merrill. Once strong and even great corporate and financing nameplates now sullied by significant business reverses. On the flip side: Apple. Google. Berkshire Hathaway. Goldman […]
What Should Your Due Diligence Binder Include?
Here is the short list of the key elements to include in your due diligence binder: 1. Background of the company 2. Background of management 3. The Company’s business plan 4. Audited and unaudited financials since company inception 5. Management discussion of company performance 6. Capitalization Table 7. Leases 8. Employment agreements 9. Purchase or […]
Raising Capital: Why Is It So Difficult?
Raising capital for a startup or small business is without question one of the most challenging aspects of growing a business. The stories are manifold of entrepreneurs and small business owners becoming both frustrated and discouraged by the amount of time it takes to secure capital, the rejections they endure, and the lack of linearity […]
The Secrets of Early Stage Private Equity Investing
According to 20-plus years of data collected by Thomson Financial, early, or seed stage, private equity investing has over the long-term, outperformed all other investment classes — with average annual returns of over 20.6%. Individual, or “angel” investors are the largest source of seed and startup capital. In 2007, angel investors infused $25.6 billion into […]
Nine Business Plan Pitfalls
In our experience of assisting with their business plans more than 1000 startups, small businesses, middle market and Fortune 500 companies, we have noted the following common business plan pitfalls: Pitfall #9: Not Including Successful Companies in the Competitive Discussion. Too many business plans want to show how unique their company is and, as […]
The Pentamillionaires
A great article on SmartMoney.com outlines the path to wealth of the majority of the nation’s pentamillionaires — those with net worths of greater than $5 million. There are now over 930,000 of these folks in the United States today, and a surprisingly small percentage got there via inheritance. Rather, according to a survey done […]
