Use Other People’s Money? It Depends… The Risk of Other People’s Money Often clients come to me indicating they want to raise money. So I get to ask the next questions: “Equity?” “Debt?” “Or some combination of these?” The response is too frequently a glassy-eyed: “You tell me.” To compound their initial frustration, my answer is usually, “It depends.” Everything has a price, including money. At its most basic, that price is normally interest or return on capital. In the real world, however, the intangible conditions associated with outside funding can be as costly to the entrepreneur as any additional premiums...
Read MoreImage via Wikipedia The news and the business blogs have been telling us how bad it is out there. Nothing like a 24-hour news cycle to pound reality home. Yes, thank you. I get it. Times are tough. So, now what? Return to the basics. Last week, Sequoia Capital gathered all the CEOs of their portfolio companies together and presented its new Get Real or Go Home approach to running businesses. If you can get through all the graphs, the message is tucked away on slide 53. My guess is slides 1-52 are for those that had somehow slept through the last few weeks. Slide 53 talks about returning to the core, cutting the fat, and focusing on the bottom line. First and...
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