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6 “Shark Tank” Questions Every Business Owner Should Be Able To Answer

YoungUpstarts

By Richard Weinberger, PhD, CPA, CEO of the Association of Accredited Small Business Consultants and author of “ Propel Your Small Business to Success: Accelerated Actions to Maximize Profit “ If you had to stand before the shark investors in ABC’s “Shark Tank,” would you get stumped by their questions?

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The Latest Questions Small Businesses Are Asking

Up and Running

Part of a venture feasibility study is to look at what financial resources are already available in personal bank accounts, equity in a home, life insurance, family and friends or from selling assets. Do I need to hire a Certified Public Accountant (CPA) for my small business? Often this is not true.

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Cliff Notes S-1: Kayak ? AGILEVC

Agile VC

How They Make Money: Majority of Kayak’s revenue actually comes from advertising on their site (55%), not lead generation or referral fees to travel suppliers as you might think (more on this below). Financial Snapshot: 2010 Revenue: $170 million. Revenue growth: 51% YoY (2010), 1% YoY (2009), 131% YoY (2008).

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Beware The Consultant

infochachkie.com

Instead of hearing from your long lost third-cousin, you will be inundated with an avalanche of ‘congratulatory’ emails, calls and letters from people who want to relieve you of the burden of your hard-earned equity round. Many such ‘congratulations’ will come from consultants. Performance-based deals are healthy for all parties.

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Business Valuation: Determining The Worth Of A Company

YoungUpstarts

This method branches off into two schools of thought: Past Earning Capitalization – this suggests that the expected revenue in the future can be predicted by a record of the company’s past earnings, once undue revenue or expenses are accounted for and multiplies the projected earnings by a capitalization factor.

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Entrepreneurs, Commit Not These 7 Deadly Sins

YoungUpstarts

Here are tips to recognize and short-circuit seven behaviors that are sure to jeopardize your equity funding later on. Engage trusted service professionals (attorney and CPA) who have worked with startups before. Most VCs don’t invest pre-revenue. It’s hard enough to start a company without self-inflicted pain. Ask questions.

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The Five C’s For Making Your Business Credit-Worthy

Up and Running

There needs to be a comfortable buffer between what goes out (expenses) and what comes in (revenue). Additionally, if finances are not your strong suit, make sure you have someone on your team (employed or vendor/professional, such as a CPA) who handles this for you. Business and personal cash are very important.

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