Steve Blank
OCTOBER 24, 2017
It’s hard to imagine, but in the 20th century there were no startup blogs or books on startups to read, and business schools (the only places teaching entrepreneurship) believed the best thing they could teach startups was how to write a business plan. Founders can now outvote the preferred stock holders (the investors).
ReadWriteStart
JUNE 1, 2020
The shares given out can either be common stocks or preferred stocks. ? Debt investment. You can get a personal loan without a business plan. The business model and revenue model, along with your positioning, pricing, and cost structures, are equally important. ? Future potential.
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Startup Professionals Musings
NOVEMBER 30, 2015
A C-corporation is more complex and expensive, and is recommended only if you expect to pitch to professional investors who demand preferred stock, or to more than 100 potential shareholders. Don’t put your family assets at risk by assuming that a sole proprietorship or partnership will cover your business needs.
Startup Professionals Musings
MARCH 14, 2020
Experienced entrepreneurs understand investor expectations of Board representation, preferred stock, and payments based on interim milestones. Ask only for the money you can justify. Naïve expectations on funding terms and process.
Both Sides of the Table
JULY 29, 2010
The downside is that people need to buy their stock. I talked also about 409a valuations and why common stock purchases cost less than preferred stock purchases. But if you do this early (pre VC) then the price points are pretty low. Do it early. Minutes 18.30 – 26.30.
Up and Running
AUGUST 28, 2019
Having these experienced brains reviewing your business plan can help ensure you don’t waste time and money on what is really a cool hobby or rewarding social venture masquerading as a great business idea. Decide on your business location. Most small businesses will be fine sticking to small numbers of common stock only.
Startup Professionals Musings
MARCH 11, 2013
Incorporate your startup after the business plan, but before you spend a dollar on product development. Legal requirements and tax requirements change as a business grows, so your entity needs to be reviewed regularly. Here are the key steps: Form the simplest legal entity early to cover your efforts.
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