In the early days of starting a business, you might be tempted to gloss over ownership structure, equity stakes, and other seemingly boring details. After all, you might think, as long as you keep taxes low, paperwork uncomplicated, and partners motivated, better to deal with the big stuff first. But these decisions can have a significant cost down the road, particularly for entrepreneurs who seek outside investors. Read more of my latest column at businessweek.com
By Monica Mehta
After a decade’s lull, the IPO is back, stoking dreams of entrepreneurs looking to cash out. Yes, dramatic market swings have changed some game plans recently, but in the first two quarters of 2011, 79 companies issued initial public offerings generating $24.3 billion, more than double the amount raised in the same period last year, according to PricewaterhouseCoopers. Often overlooked by newbies: By the time a company is ready to go public, the founders usually have diluted their personal ownership stakes considerably through previous financing rounds.
Conventional business planning teaches us how to identify risks, not how to take them. For aspiring entrepreneurs seeking to take a leap, learn from veteran entrepreneurs and the scientists that study them. Check out my latest story in BloombergBusinessWeek on how to take entrepreneurial risks.
Investors and entrepreneurs who won at the fundraising game during and after the Great Recession offer advice on landing equity money
By Monica Mehta
Monica Mehta speaks with ABC News Good Money anchor Tanya Rivero about four businesses ideas poised for success, even during tough economic times.
Posted in ABC News, More on Start-ups, Small Business
ABC News
Small business expert Monica Mehta has tips for translating business ideas into big opportunities
Posted in ABC News, Mailbag, More on Start-ups, Small Business, Video
Bloomberg BusinessWeek
By Monica Mehta
Entrepreneurs seeking early-stage capital must rethink strategies to suit investors’ expectations. HitFix shows how the landscape has changed. Venture capital returns over the past decade deserve two thumbs down. (Read More)
The Entrepreneurial Instinct (McGraw-Hill, Sept 14 2012)
Monica Mehta is an investor, author and finance expert. She is a frequent contributor for CNN, Fox News, BloombergTV, MSNBC, INC Magazine and Bloomberg BusinessWeek. She is the author of The Entrepreneurial Instinct (McGraw-Hill, Sept 2012)
