While there are no hard rules, double its initial estimate of capital required, “- said Jim Peck, the head developer of software for dentists Curve Dental. 16) How you will finance your business? Do you have a choice: a rich aunt, credit cards (dangerous), a business angel, venture capital (if you have a serious business), a bank loan (good luck in the search) and the most expensive way – the issue of shares. Be careful: the sale of shares leads to erosion of capital, loss of control and difficulties in management. In general, improve your business if you can. And finally, do not forget to relate the timing of receipt of money from your assets and deadlines for payment of obligations.
Inconsistency can be painful. 17) How much money do you need to survive the first few years? For those who slept the previous item: Follow the money. The set of entrepreneurs boasts the financial projections of growth, but their pockets are empty even before the good times on the horizon zabrezzhat. Gwyneth Paltrow is open to suggestions. (Remember the bankrupt dot-com?) Be patient with Aeron chairs and computers, Mac, while not going to get more than spend. 18) What are your financial projections? Movement is impossible if you do not have a destination. Two important milestones: 1) operating return – when your business gets more money than it spends over a certain period, and 2) Investment return, when you finally whacks their initial investment (including inflation). Financial projections should be justified. Draw too optimistic a picture – and experienced investors run away from you.
Have you run out of money. 19) How to bring happiness to your assistants? What kind of American Idol without Simon Cowell? Soon we all know, but many think that the show would no longer what it used to. If you happen to find great talent, try to restrain him. Salary – just part of the equation. 20) What is your ultimate goal? Want to lose your business to the first comer man with the money? So did the owners of MySpace, but Facebook. Different objectives require different strategies. Always remember, what you want.