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Rules of Thumb Business Valuation Methods Explained

Up and Running

Some reasons why include needing a more detailed picture of your company’s value, submitting taxes, outlining employee stock option plans, or presenting to investors or creditors. For many business owners, getting a formal valuation is worth the investment. Rules of thumb in business valuation. Examples of rule of thumb valuation.

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Introducing the Cap Table and Hiring the CTO

Feld Thoughts

It is not in the three primary financial statements (the Balance Sheet, Profit & Loss, and Cash Flow Statement.) They come up with two options: Hire Praveena as an employee and offer her stock options. Bring Praveena in as a founder and offer 10-20% of the company as stock.

Cap Table 133
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Life Audit: 4 Ways To Reprogram Your Life

YoungUpstarts

It’s a balance sheet where you live in the present and ask yourself where you want to go from here. You don’t need an accounting degree to understand your balance sheet and build wealth. Conjure up some of that youthful exuberance for the courage to pursue those entrepreneurial objectives you’ve set your eyes on.

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Should Startups Care About Profitability?

Both Sides of the Table

It was a stock option incentive related “expense” but I bet you didn’t know that because in an era where we only read the headlines — they must be a train wreck losing billions. If you don’t have a strong balance sheet and can’t hire more people that’s fine — but understand this may lead to slower growth. What a disaster!

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Financial Literacy

Feld Thoughts

The Balance Sheet. An inability to read the Balance Sheet, P&L, and Cash Flow statements. A lack of understanding of how the Balance Sheet, P&L, and Cash Flow statements fit together. Analyzing Financial Statements. In my experience there are four specific things that people struggle with.

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How to Raise Startup Funding from Unlikely Angel Investors

Up and Running

Financial Model and Balance Sheet (even if there are zeros across the board). Stock Option. Management Resumes and Organizational Chart. Customer References. Personal References. Social Security Numbers (for background checks). Capitalization Table and Shareholder Roster.

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What’s the minimum information to give your investors?

Berkonomics

These include election or re-election of board members if required by the bylaws of the corporation, approval of any increases to stock option plans (which would dilute the worth of shares outstanding,) and approve any additions to the capital stock authorized to be issued.