Thinking about starting a business? Why? Can you explain what the business opportunity is and how you will make money? I hear hundreds of pitches every year from budding entrepreneurs. Their main challenge is making the business case.
Archive for the ‘Business Basics’ Category
Shareholder Agreements are important because they define how a company will be governed. They are especially important when one shareholder or a group of shareholders controls the company by having more than 50% of the votes. A shareholders agreement gives minority shareholders certain rights.
A “Term Sheet” is a document that summarizes the terms of an investment. It’s usually proposed by the investor(s) and spells out what they want in order to proceed with an investment. I’m not sure why it’s not called a “Terms Sheet” since there are many terms in it. Perhaps that came about because the [...]
What’s my baby worth? Figuring that out is the biggest challenge entrepreneurs face when attracting investors. Many negotiations break down over this issue. The good news is that there are contractual mechanisms that can be used to resolve any disparities.
Over the years, I’ve written a number of articles to assist entrepreneurs, especially tech entrepreneurs, with an understanding of business matters. On the Simon Fraser University Website, much of this can be found at www.sfu.ca/~mvolker/biz. These articles are in the process of being updated, with new ones added, and will gradually start showing up on [...]
Good corporate governance – having an active board of directors – is essential in building a good company. Assembling a capable board should be done sooner than later. Why?