Entrepreneur Without Money Arrives …..Beware!

Actually, a lot of enterprising entrepreneurs don’t have any money. A hard reality to understand, but it is true. Often they just have a lot of moxy and/or gambler instincts.

They simply have the intestinal fortitude (guts!) to take chances. Sometimes they win and make a lot of money (usually for themselves!!). The wonderful part of their great plan is to SHARE the opportunity with others.

Maybe YOU are their prime candidate (a person with MONEY!). You have been selected to be their partner in a new business venture. It could be that you have the contacts….the know-how….etc. For some reason, YOU are important to their business success.

Life never seems to turn out just like you had planned. A good friend of mine worked in a small warehousing / trucking operation for many years. The BOSS owned 90% of the stock in the firm, which means he had full control. Another employee (the Manager) owned 8% of the stock. The two children of the boss owned the remaining 2%.

Basically, owning 8%, 20% or 49% of the stock in a small (closely held) company is of LITTLE value or importance UNTIL you SELL the stock or it changes hands at death.

Why Should I Own 51% of the Stock?

Why is 51% such an important STOCK OWNERSHIP percentage? Others own 49%…ONLY 2% difference. Is 2% such a BIG DEAL?? YES! YES! YES!

Obviously, your PARTNERS may be SMART, too! What IF they want to OWN 51% and let YOU be the 49% owner? DEPENDS! An old saying is….HE who has the GOLD makes the RULES. Maybe you are really getting a wonderful deal when someone offers you any OWNERSHIP in a company. It could be 25%. Maybe 10%. It all depends on many FACTORS.

Watch Out For Folks Going To Bible Study

This is an OLD experience for my family. It happened many years ago. Can it happen again?? It almost did just 3 years ago. YOU can never let your guard down when doing business. There are just too many folks ready to make the easy dollar…. AT YOUR EXPENSE.

Contracts Can Backfire In Your Face!!

Some years ago, our firm had an employee who was labeled as the MARKETING Manager. Also, the Sales Manager. Obviously, a very IMPORTANT position. YOUNG and ENERGETIC! SINGLE! A real GO-GETTER!! As you might expect, HE got engaged, then married to a NICE GAL. Intelligent. A good businesswoman, too.

Not a bad situation for him. OUR PROBLEM?? His new wife was 3 HOURS away! How can we keep THIS valuable employee? WE had NO BUSINESS in the CITY where he needed to live with his new wife. He wanted to stay in the business and we certainly desired his continued employment with us.

So You’ve Decided to Start an Online Business

Many people ask: Can you start an online business to make money? A better question would be: Can you start an online business that will be profitable? Starting an online business requires patience, skill, knowledge, and belief in your ability to succeed.

Yes, it’s easier and cheaper to start an online Internet business, than a brick and mortar business. Yes, your online business will be available 24 hours a day, 7 days a week, 365 days a year (24×7x365). Yes, millions of people, around the world, will be able to access your web site. Yes, you can make a lot of money on the Internet.

No Personal Guarantees….Your Best Deal!!

Things you may not expect USUALLY HAPPEN! Here’s what happened to a good friend of mine several years ago. Timing doesn’t matter, it could happen TODAY.

My friend went out of town on vacation. Upon his return, he discovered that his “PARTNERS” had signed a MAJOR contract to PURCHASE an expensive computer system WITHOUT even consulting with him.

This is why your AGREEMENTS are so IMPORTANT and MUST be in WRITING! My point is…this can happen to you unless your LEGAL advisor has PROTECTED your best interest in the business. You DO NOT want someone making decisions for you when it is YOUR money at RISK. Even more serious is being on the hook for any borrowed funds from your banker.

EBITDA…What Does It Mean To You??

If you are just starting your own business, great! If you already have a business, GREAT!! It really does not matter what stage you are currently facing. You MUST have one GOAL in mind when you begin a business.

BUILD YOUR BUSINESS TO SELL!!!

This is the ONLY good reason to start or run your own business. An ideal plan is to set yourself up to sell out and start over every 5 years until you reach the ultimate goal to RETIRE. Obviously, this is not an easy thing to do, but it certainly is a great goal to set into your business plan. Hopefully, you won’t have to face a recession every 5 to 6 years as we did in our 40 plus years business life.

Do you want to succeed in business? Life? Parenthood? Marriage? Friendships?

Obviously, all of us would quickly say YES! Such a dumb question for someone to ask us! I didn’t ask the question to make any of us look dumb, but to get our thoughts on the right track.

Certainly, we want success in all areas of life. My suggestion is that you select outstanding advisors to help you when faced with tough decisions in every area you face, particularly where you are about to make big decisions without knowledge or experience.