The ABC reality TV show “Shark Tank” is incredible. Each week, contestants are offered millions of dollars for a piece of their company. They have about 30 seconds to say yes or no. It looks simple, doesn't it?
Behind the scenes, it is anything but simple — and the business owners are the most likely to be the least prepared. I suppose that’s why this is called the Shark Tank.
In my 40-year career I have met with 100’s of business people seeking loans. It is the fun part of what I do. But I've also seen some common mistakes that entrepreneurs make, particularly when talking to a banker.
Sometimes I think bankers speak a different language than entrepreneurs. Be very careful that what you say is what you want the banker to hear! For example, here are 4 of the
If you’re looking to raise money for your business or startup, you should start getting ready now to offer stock to the general public under the new law called Jumpstart our Business Startups, or JOBS Act.
Title III of the JOBS Act allows private businesses -- even startups -- to raise money from the general public for the first time since the great depression. Suddenly,
If these seem like dark days for funding or selling your business, you need a white knight to save the day. Today, that's likely to be a Private Equity Group. There are hundreds of Private Equity Groups in the USA that together control billions of dollars of business capital. Much of it can be invested with relatively few strings attached, and these firms actually want to invest in small
I've accepted it: Retirement is dead. Anyone still working today might never be able to retire.
So why are we all putting money into retirement savings accounts? Between IRAs, ROTHs, 401(k)s, SIMPLEs, SEPs and SOLOs, there's no shortage of ways to save for a day that may never arrive. And yet Morningstar reports that the average retirement account lost value last year! (Mine certainly
You ought to have your calculator handy when you watch ABC’s Shark Tank, the TV show where wealthy angel investors make on-the-spot investments into small businesses.
Last night a middle-aged company owner was offered 3 deals in rapid succession. For me, this was a simple math problem: Which offer gave the owner the best valuation?
Every offer implies what the investor thinks
Whether your business is growing rapidly or just getting started, you need cash. But negotiating equity investments can take a long time – time you don’t have.
You need cash NOW... meanwhile, venture capitalists (VC) and other investors will spend months negotiating deal terms. And just when you think the terms are finally set, there's another committee that has to approve them. Most
You've been carefully nurturing an equity investor and now he’s threatening to walk away from the deal. Despite an endless number of presentations, term sheets, meetings with partners and expensive legal documents, it looks like the negotiation is going to unravel. And that could unravel your business too.
What’s an entrepreneur to do?
You might think that good negotiating strategy
Venture Capitalists can be a tough group to please. Because they hear hundreds of pitches every year, VC learn to sort the best from the B.S.
I had a chance to discuss this topic with Mr. Ed Goodman, General Partner and Co-Founder of Milestone Venture Partners in New York City. During his VC career, Ed has invested in over 100 companies including Apple Computer and Staples office supply
You've probably heard stories of Angel Investors swooping in to help fund a company. In today’s tight financial environment, it almost sounds like an urban myth. But wealthy individuals who invest in private companies do exist. And they are more plentiful than you might imagine. You might already know several.
Now, I wouldn’t count on Donald Trump writing you a check that solves all