Forming a Corporation ? Investors
You've come up with the best idea since sliced bread, figured out a business name and formed a corporation. There is, however, one small problem. You need money. Welcome to the world of investing.
Unless Bill Gates is your friend, money is going to be a problem for every new business. Even the might Google had to hunt for cash with one of the founders of Sun Microsystems finally kicking down a much needed $100,000. Whether you decide to pimp your business plan to anyone breathing or beg your step-mother for funds, here are some issues to consider.
Investors are looking for the best deal, to wit, the most stock possible in an entity. If you are asking them for cash, they have the leverage. Don't be so desperate that you give away the farm. All to often, I speak with individuals who started a business on a whim and have become disillusioned because they have lost equity in the business.
Assume I start a corporation and need funds. My neighbor agrees to kick in $20,000 for 20% of the stock. Things go great, but four months later I need another $50,000 for inventory and cash flow. My aunt agrees to kick in $50,000 for another 20% of the stock. Yikes, I am not even through the first year and I have given up 40% of the equity!
What happens in year two when I need a $100,000? I give up more stock and suddenly own less than 50% of the business. Inevitably, this leads to feelings of resentment and bitterness. "It was my idea, but now these blood suckers are going to get most of the money and they aren't even working on the business." This sentiment is so common that it would be laughable if it weren't so depressing.
As a general rule, you should only sell ownership in a business as an absolute last resort. Instead, try to get loans from investors, banks, home equity lines and even credit cards.
If you must sell stock to raise funds, be very careful when valuing the stock. You should place a value on each share as though the company was already a raging success, not just starting out. Further, make sure you sell only small allotments of stock such as three to five percent. If you owned IBM, how much of the ownership would you sell for $20,000?
When starting a corporation, guard equity as though it is the Holy Grail. If you don't, you risk becoming a disillusioned shareholder down the road.
Richard Chapo is with http://www.sandiegobusinesslawfirm.com - providing legal services to San Diego businesses.
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With all the cabinet refacing business opportunities out there, you could have a home based business that grows in this expanding industry. You've wanted your own kitchen updated, or talked to friends and family who have put out thousands of dollars remodeling theirs. It is an industry that will expand continuously, as homes are getting older and people want a new modern look.
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During the California Recall Election, I was very interested. Without getting into the political scene at all; my entire company, The Car Wash Guys, and all our staff and franchisees were closely watching The California Recall and Election. Why you say? Why would a National Car Wash Franchising Company care much? Well we have some friends of past days who were very much involved there. See some of these articles and find out how we were assisted in our early company years by Mr. Tom McClintock (Rep) of California who was running a very close third in the election with the fastest moving up numbers in the polls. We all wondered would it be The Terminator just like in the movies? Arnold Schwarznegger, who promises to terminate bureaucracy or will it be Mr. Tom McClintock? We did not believe that California will choose more of the same regime or elect Mr. Bustamonte. Tom McClintock's assistance to our company when we were the smallest of small businesses helped us from bureaucracy and un-ethical competition. To this day he continues his ideals and does not waiver on issues.
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Ok, so next to the taxman, your company payroll department might well be the most criticised people on the planet. Of course, when your pay is accurate and on time then you love the payroll people with a passion but when things go wrong it is a completely different matter. Rightly or not the payroll professionals come in for an awful lot of abuse if your pay is not perfect.
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If you really want to earn more money with your small business than you need to strongly consider adding a P.I.G. Obviously, I am not referring to the questionably adorable pot bellied pig that many fine people have adopted for a pet. The concept of adding a Passive Income Generator to your business should be a top priority if you want long term income.
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In the Truck Washing Business every single type of vehicle is washed differently. If you are going to run a mobile onsite fleet washing business with multiple trucks in multiple cities you will in fact need a comprehensive manual to keep your crews and equipment running at an optimum. Below you will see a sample outline to assist you in constructing a washing procedure manual, which will include many different types of fleet vehicles.
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Q: I have outgrown my home office and need to find office space for me and two part time employees. I am really excited about opening my first official office, but never having rented commercial space before I don't know anything about how this process works. What are some things I should consider before signing a lease? I'm really eager to get started!-- Jay P.
Small Business CRM Is Here To Stay
If you ask most small business owners what priority CRM has in their short-term business plans, chances are you'll get more than one blank stare. The fact is that most small business owners don't even know what CRM is not to mention how significantly it can benefit their growing company. This prevailing ignorance of small business CRM (customer relationship management) usually stems from just a few basic causes.
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Get Free Payroll Forms Download from the Internet
Having a successful business means also having a good working relationship with your employees, and nothing more makes it sour than having problems with the payroll. You can't expect them to work gratis, employees expect to be paid and compensated fairly. If this is done, the working environment will be pleasant and the employees will be more productive. Many company's experience labor problems because they don't have a smooth payroll system. If that is the case, many complaints will arise. Salary is a form of payment for the services rendered provided by the employer to the employee for a certain period of time. This payment should be in accordance to what has been agreed upon by both parties prior to the start of work provided.
Pressure Washing Business; Steam Cleaner Fuel Maintenance
It is essential that you fully understand how the fuel system works on your hot water pressure washer or steam cleaner. If you mess it up it could catch on fire and if you are not right there to put it out, you could potentially lose your machine. This type of equipment has been known to explode and Hydrotek out of California actually has a CD Rom video of a machine exploding when a fuel leak is ignited just to show operators what could happen. We recommend the Hydrotek Hot Water Pressure Washers. Some people prefer Landa, but we have tried them all.
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Sometimes the simple businesses are the ones, which make good money. Take mini-blind cleaning for instance. There are many successful small time entrepreneurs out there cleaning mini-blinds. Having been in the franchise cleaning business for some time, I often noticed exceptional entrepreneurs out there.
7 Habits of Highly Successful Small Business Owners
Do you spend every waking minute in your business? Do you find it difficult to take time out for you? Are you constantly working in a mess?
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