Berkonomics

OCTOBER 28, 2021

The biggest mistake many corporate marketers, entrepreneurs and even investors make in the initial stages of planning – overstating the size of the (SOM) serviceable obtainable market. Yet, there are wonderful cases where entrepreneurs created and grew vast enterprises in new markets which could not be measured when their journey began.

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Berkonomics

JUNE 12, 2014

First, there is the entrepreneur , the visionary, and force behind the venture from start to finish. Email readers, continue here.] Few entrepreneurs can do it alone, with subordinate hired help and no expert management to share the burdens, skill sets and efforts involved in growing the enterprise.

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Berkonomics

NOVEMBER 15, 2018

Looking back over an entrepreneur’s journey. As I look back over more than fifty years as an entrepreneur, I can think of the financial focus of my three entrepreneurial businesses as a prime driver in my life during the early stage of each. But, for this short moment…. The rewards of angel investing.

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Berkonomics

SEPTEMBER 20, 2018

Most entrepreneurs and certainly all investors would like to see “a positive liquidity event” (a good sale of the business) someday. Not only will group focus upon the possibility of a liquidity event, it will begin to focus upon a number of possible buyers. So, that’s the reason for this insight.

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Berkonomics

SEPTEMBER 19, 2013

In fact, many angel investors or venture capitalists look for and respect the lessons learned by entrepreneurs that have survived a failed business. The key question is how did the entrepreneur fail? A successful entrepreneur who has seen the movie before is even more valued. Email readers, continue here.]

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Berkonomics

MARCH 9, 2017

We have years of real data to call upon: data that impacts both investors and entrepreneurs. years before a liquidity event (positive or negative.) Entrepreneurs will always start new enterprises. Restaurant startups would not top my list. For 2016 alone, there are two reliable sources of recent data for us to examine.

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Berkonomics

FEBRUARY 28, 2019

It’s a fact of life that a banker, lender or lessor will ask for a personal guarantee from the founder or entrepreneur most every time. To most lenders, the guarantee is still a requirement, putting the entrepreneur in a position of additional risk that is not spread among the shareholders. The short answer is “yes.”

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Berkonomics

NOVEMBER 1, 2018

Email readers, continue here…] Now, there are three kinds of exits. The marginal exit is most difficult, and it would be rare for an entrepreneur to willingly share with other managers. So, I wrote into the final distribution instructions a surprise five figure bonus for each of the five executives. Consider the kinds of exits.

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Berkonomics

DECEMBER 17, 2020

Each has a process in place to accept applications or recommendations for investment into new companies, and to review these and make decisions based upon their exploration, previous experience in the field, knowledge of the company or industry, or about individual entrepreneurs. Some can supply more when syndicating with other such groups.

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Berkonomics

OCTOBER 29, 2015

Taking money from professional investors such as angels or VCs usually requires that you agree to seek an exit for those investors in your plan, often targeting five to seven years as the ideal period for growth before a liquidity event. For some, that comfort is worth forgoing building high equity value.

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Startup Professionals Musings

FEBRUARY 3, 2010

Most quality advisors know that chances of a liquidity event are rare. Bob is a serial entrepreneur with many years as an Executive Recruiter who now runs ABA to build and manage quality corporate advisory boards. See his regular blog or contact him directly via email. What is the value of free?

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Advisory Board Startup Liquidity Event Stock 225

Berkonomics

JUNE 8, 2017

Some businesses require very little capital and the founder can self-finance the enterprise and retain 100% of its ownership and control from ignition through liquidity event (startup through sale). And even with the significant cost of credit card debt, many entrepreneurs aggressively use existing cards to finance a startup.

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Private Equity Valuation Cap Table Accredited Investor 106

Berkonomics

FEBRUARY 23, 2023

Those of us in the business of calculating (guessing) this mythical peak in value often make the same mistake as our entrepreneurs. And some of us know from experience that, in a retrospective view, some of our entrepreneurs and their boards of directors pay the ultimate price of erasing all economic value by waiting too long.

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Berkonomics

MAY 7, 2015

Email readers, continue here…] This lesson is important. And we look to see if the size projected is large enough to interest us as investors, since that is directly proportional to the ultimate value of the company in a liquidity event. The size of your dream must be scaled to fit into the size of your marketplace.

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Berkonomics

SEPTEMBER 27, 2018

Email readers, continue here…] I did forget to tell you that on that day looking into the company’s books I discovered that neither the company nor its founder had filed Federal income tax returns during the three years in business, didn’t I? Our entrepreneur balked at the boldness of that statement. Recovery and success.

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Berkonomics

OCTOBER 8, 2015

Email readers, continue here…] First there comes a sense of relief, knowing that you no longer need to worry over daily cash or threats to your net worth. But what most entrepreneurs fail dramatically at is to celebrate the moment. The do as all good entrepreneurs do. Many fail multiple times. Take a long breath.

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Berkonomics

DECEMBER 30, 2021

How about the entrepreneur -founder? Professional investors rarely attach a red letter upon a failed entrepreneur. Email readers, continue here…] We who invest look for patterns from previous experience. Most importantly, we think: ‘Now that I know this, would I behave differently if it did happen to me?’.

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Berkonomics

JANUARY 13, 2022

Email readers, continue here…] But what about the pause to celebrate? What most entrepreneurs fail dramatically at is to celebrate the moment. Not many founders or entrepreneurs do experience the success of a favorable sale of the business they dreamed would make them rich. Then do as all good entrepreneurs do.

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Berkonomics

SEPTEMBER 17, 2011

email readers continue here.] Did I forget to tell you that on that day, looking into the company’s books, I discovered that neither the company nor its founder had filed Federal income tax returns during the three years in business? And a month later the bubble burst. Could I have found a better example of “Timing is everything”?

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Liquidity Event Pre-Money Valuation Sales Valuation 59

Berkonomics

MAY 26, 2010

Email readers continue here.] If these weekly nuggets are providing a bit of insight for you or your associates, then purchase a copy of BERKONOMICS in book form, with 101 of these insights organized from startup through liquidity event. One of the items on Cohen’s list of twenty five was stock options.

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Berkonomics

JANUARY 6, 2022

First, the marginal exit event: Sometimes the end game or sale of the company is not a happy event for the early investors, including the entrepreneur or the founders. Here’s an example that will make your heart skip a beat.

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Berkonomics

JULY 5, 2018

Accepting venture or angel money is to create a contract between the investors and the entrepreneur that the business will someday be sold or even go public to create an exit for the investors. What if you’ve taken outside investors over the years?

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Berkonomics

OCTOBER 4, 2018

The entrepreneur, whether remaining to the end as CEO or not, is celebrated for his or her prescient timing, great vision and excellent execution of the plan. Sometimes the entrepreneur who believe s/he has failed the investors apologizes. It is an exhilarating ending to a great journey. Sometimes, there is embarrassment or shame.

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Rob Go

NOVEMBER 18, 2014

This week, we helped organize an Angel Bootcamp where some of Boston’s most successful angel investors shared their experiences and lessons learned to a crowd of aspiring angels and entrepreneurs. It was a terrific event with some really unique content and stories. 2: Flexibility.

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Berkonomics

NOVEMBER 8, 2018

Email readers, continue here…] So, if that day does come when you have sold the business or come into a financial windfall, I propose that there are few times in life when the opportunity opens to look outward, to participate in charity events, extended family vacations, community boards, and even coaching other entrepreneurs.

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Berkonomics

OCTOBER 25, 2018

If you are an entrepreneur or CEO, surely you’ve thought of how you’ll be remembered by your associates and stakeholders after you move on. Be honest now. Have you ever thought of what legacy you’ll leave behind? Bad boss examples aren’t forgotten. That extra effort does pay off.

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Stock Employee Email Cost 48

Berkonomics

FEBRUARY 9, 2017

Those of us in the business of calculating (guessing) this mythical peak in value often make the same mistake as our entrepreneurs. And some of us know from experience that, in a retrospective view, some of our entrepreneurs and their boards of directors pay the ultimate price of erasing all economic value by waiting too long.

Dilution 48

Dilution Valuation Early Stage Naming 48

Berkonomics

JANUARY 31, 2019

Email readers, continue here…] How about after the two-year limitation in your non-compete agreement? Many entrepreneurs have new and better ideas for a similar product and wait out the non-compete by watching the clock. After the non-compete expires. About starting over or repurchasing your business.

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Berkonomics

JANUARY 31, 2019

Email readers, continue here…] How about after the two-year limitation in your non-compete agreement? Many entrepreneurs have new and better ideas for a similar product and wait out the non-compete by watching the clock. After the non-compete expires. About starting over or repurchasing your business.

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Non-Compete Bankruptcy Sales Employee 48

Berkonomics

JANUARY 20, 2010

Some businesses require very little capital and the founder is able to self-finance the enterprise and retain 100% of its ownership and control from ignition through liquidity event (startup through sale). And even with the significant cost of credit card debt, many entrepreneurs aggressively use existing cards to finance a startup.

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Private Equity Valuation Cap Table Accredited Investor 69

Berkonomics

SEPTEMBER 3, 2015

His groundbreaking book, “Early Exits” has become a textbook for angel groups and entrepreneurs throughout the world. His Strategic Exits Corporation provides M&A advisory services, and he is much in demand as a speaker at angel and entrepreneur events worldwide. – Dave. By Basil Peters.

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Berkonomics

SEPTEMBER 10, 2015

Most entrepreneurs wait too long to start thinking about their exit. I recently met with two bright entrepreneurs who are building a company in an exciting niche market riding on a long term trend. Email readers, continue here…] Their niche was heating up quickly – unfortunately for them. By Basil Peters.

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Berkonomics

SEPTEMBER 17, 2015

Email readers, continue here…] So that is why we devote just one of our exit focused insights to just this subject. Professional investors rarely attach a red letter upon a failed entrepreneur. Most importantly, we think: ‘Now that I know this, would I behave differently if it did happen to me?’.

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Berkonomics

AUGUST 27, 2015

He has written numerous books and articles for entrepreneurs and investors, and was the publisher and editor-in-chief of Venture Magazine. Mr. Lipped addresses the issue of exits, and whether entrepreneurs should take the long view or cash out quickly when the opportunity arises. By Arthur Lipper.

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Berkonomics

OCTOBER 28, 2011

I have great respect for the young entrepreneur CEO of the game company I described a few weeks ago, because he disciplined himself enough to take extensive time for family after the closing of the sale, increasing his participation in all things family. Email readers, continue here.]

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Berkonomics

SEPTEMBER 23, 2011

The entrepreneur, whether remaining to the end as CEO or not, is celebrated for his or her prescient timing, great vision and excellent execution of the plan. There’s almost always a closing party where the board, prime investors, attorneys and investment banker all get together to celebrate the victory.

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Steve Blank

JULY 2, 2009

Entrepreneur-in-Residence After SuperMac I had been approached by one of our venture investors to be an entrepreneur in residence (EIR), a Silicon Valley phrase which says one thing but means another. I offered to introduce him to the firm whose Entrepreneur-in-Residence offer I had just accepted.

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