Are you good with computers and considering a home based business where you can utilize your computer knowledge? You may be interested in starting a computer tech business from home offering support to the millions of people world-wide who own computers but often become very frustrated and disillusioned with them. If you are planning this type of business with your spouse and have children, carefully consider this venture before stepping into it. You will need to be able to manage your time and have an excellent ability to communicate to each other.
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To be a successful entrepreneur you are going to have to learn to deal with failure. There is no way around it. Thomas Edison tried over ten thousand different experiments before he finally demonstrated the first incandescent light bulb on October 21, 1879. Bill Gates’ first company, Traf-O-Data, was a failure. In my short stint as an entrepreneur I’ve failed more times than I can count. I have also had my share of success, but itâ€™s not even close to equal. The failures far outweigh the successes, and Iâ€™m sure I have a lot more failure ahead of me. Iâ€™m OK with that because I know that as soon as I stop failing, I have stopped trying to innovate.
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When raising capital for a company, warrants are a form of equity which is given to investors. A warrant is an option like – it gives its holder the right to buy a security at a fixed or formula price, which is known as “” or “strike” price. The warrants are often confused with options. On the other hand, act as warrants for short-term options and, unlike the options, may be traded as an independent . In general, neither the issuance of warrants or their exercise (at least by non-employees) is a taxable event.
In fact, in 1984, Congress reversed the earlier position of the IRS that the expiry of a warrant of a taxable event for the issuer. However, whenever a debt with warrants attached is presented as a package, emission reduction initial problems are invited. A type of popular mandate once as a funding mechanism for new is dependent on warrants. These warrants can be exercised if and when the holder does something for the issuer, for example buys a certain level of product. Contingents warrants are used more often since the SEC has ruled in favor of current and periodic recognition costs to the issuer.
As an option, a warrant is considered a “common stock equivalent” for purposes. And if the arrest warrant was “money” (ie, the exercise price is below the market price) for three consecutive months, it is considered as the impact of earnings per share under the so-called treasury stock method. In other words, the warrants are considered exercised, new shares are issued at the exercise price, and proceeds to the issuer are used to buy stock at market prices. The warrants are a common mechanism of and companies seeking venture capital should review and become familiar with this type of equity.
More and more students, both in undergraduate and graduate institutions, are deciding to launch their own ventures upon graduation rather than taking the traditional route of working for another firm. While these ventures may ultimately be very successful (e.g., and Microsoft were both launched by students), they face certain challenges in their business plans and capital raising processes. The foremost challenge is overcoming the lack of experience of the management team. Advisors can also help with the execution of the and sometimes will also provide the needed capital.
A classis chicken-and-egg problem presents itself â€“ the management team has no past company successes to point to, and canâ€™t prove itself unless given the opportunity to launch the . It also proves that the entrepreneurs have the ability to â€œsellâ€ others on their vision. The team need not be complete before seeking capital, since additional members will most likely be added after capital is raised.
Even if the venture is able to attract quality management teams and advisors, it will always be at a disadvantage versus other ventures headed by entrepreneurs who have â€œbeen there, done thatâ€ successfully in the past. To compensate for this, these ventures must really know their , know their market and know their competition. In summary, when or first time entrepreneurs, begin developing their business strategies and plans, they must compensate for the management deficiencies they possess versus established entrepreneurs.