Equity Financing For The Small Business
Venture Capital Firms
Basically, venture capital is an investment in an unproven business. Venture capital firms provide equity funds to new and young companies. This immediately separates venture capital firms from investment firms, which prefer to invest in existing, financially secure businesses. Venture capital firms do not make outright loans. Instead, they buy an equity interest in the business that gives them the same advantages and disadvantages associated with equity arrangements.
How do they operate? Venture capitalists are looking for two basic things when considering whether to invest in your business:
The Non-family Members of a Family Business
Delaware Business Review
by Nancy F. Blumberg, CPA, CFP
Simon Master & Sidlow, P.A.
Key non-family personnel are just as important to successfully operate a family business as family members are to the business. Attracting and retaining these non-family members will help the family firm grow and prosper.
There are a number of creative ways to keep those key employees happy without jeopardizing the family’s control of the business. To determine the most rewarding benefit to the key employee, first the owners need to be aware of the non-family manager’s expectations and concerns.
It’s not unusual for a key non-family employee to expect sick leave, disability, retirement and medical benefits.This employee will expect to be comparably compensated to others on his level in the industry.
Concerns that need to be addressed are: if the employee remains healthy, what will the employee have at the end of this tenure?Also, what happens if the company goes through a succession during the employee’s tenure – what part will the employee play? More…