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Throughout the world and the USA: There
is an abundance of stagnant capital. Qualified investors (and people who
believe in you) are looking for ways to grow their money either as a loan or as
an investment for equity. It will require an excellent business concept, a
well-detailed business plan (your story), and real financial projections. They
will also require that you understand your financials, even if they are quite
modest. Those numbers are the organics of a business, the basic
1-2-3s.
We all need to know
as much as we can about capital. Responsible money, with the emphasis on
responsible, is an access path to leverage the best of our past
and extend it into the future. This kind of money is an equation that is time
dependent, time-binding, and time-extending.
On this show, you
hear, "Business is not about greed."² Although there are plenty
of greedy people within business, the very first principle of business is that
you are only a business when you create something of value.³
There are two types
of money: MOM (our acronym for "My Own Money") and OPM, a commonly-used acronym
for Other People's Money. All debt capital, or loans, are
secured by your own money (assets) and it is all MOM. All equity capital is OPM
(yes, that sounds like a little like opium).
If your business
has the inherent values to continue to grow beyond your time within it, then
you need to be teaching the next generation about the dynamic flow between MOM
and the business, between Mom and your banks, and with all other OPM.
Ultimately your goal is to be just as liquid as you want to be by the time you
are ready to do something else (and, for most of us, that should be as close to
100% liquid as we can be).
Money is always one
of the "Big Three" problems within business. When you start, it is consistently
#1. When you are growing, money and people constantly jostle for #1. And
frequently throughout the year, government regulations-and-taxes vie for your
money and become #1! Most every episode of the show since 1994 has looked at
how people began their business and what kind of money they used to do
it.
Business is just a
series of problem-solving exercises. That's its nature.
If you do not have
the stomach for it, get a job. If you think money is going to be given to you
just because you have a good idea, keep your job!
CONTACT: (in order of
appearance - each link goes to the website of each business)
Ziba
Design
Ken Duncan Gallery
Orange Tree Imports
Navarro Pharmacies
TiresPlus and Gegax
Management
Rodgers Chevrolet
Tejas Office Supply
Boston Duck Tours
The French Laundry
Bridgecreek Development
Ekkwill Waterlife
St. Claire's Organic Sweets
The Band of Angels
Medallion Financial
We invite your
COMMENTS OR QUESTIONS. |
- CASE STUDY GUIDE: You
will find these case studies and video clips in the best-selling business
textbooks used within MBA programs in colleges and universities around the
world. To understand the organics of one's financials requires understanding
the key critical ratios. The foremost experts in the world on business ratios
are people at
The Risk
Management Association (this links goes to our explanation about the
organization). There is a special course, the subject of the next episode, to
help us all better understand our income and balance statements, then our
business ratios.
- FIRST PRINCIPLES: Starting a business is
the road to economic independence for most of us average people. Read a little
more to see why
incorporating a business keeps the passion of
the American revolution alive!
- CASES BY
BUSINESS TYPE. Click on the heading to find all the business types and
then click on your type of business to check out those case studies.
- JOIN, JOIN, JOIN: Your professional associations in your industry
are your key to continuing education, market research, collaborations,
strategic partnerships, capital and so much more ... often you'll find that you
enjoy like-minded people and many will become friends for life.
- SUPPORT PUBLIC TELEVISION: Become a
member of your local station. If you are already, great. If not and your
business is doing well, consider joining the Producers' Club ($1000). Too much?
Get a twenty employees, customers and/or suppliers to join en masse with
you at $50 per person. Just get on the inside of your local station and
learn how
to become a producer.
- REVIEW THEIR COMMENTS IN THIS TRANSCRIPT (click on
their picture which is also in order of appearance). Or, go to the complete
episode about each person. There are links to the homepage, profile,
transcript, and study guide.
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