Do you know what your business owns and owes? Do you know what your business makes and spends? More importantly – do you know what the equity is in your business or what it might be worth? It’s typical for an entrepreneur or for someone running a business to say “yes I know what we make and spend” but unlikely that they know what they own/owe and what the equity in their business is or what the value might be. Small and medium sized businesses can be so focused on surviving that they often don’t take time to see if the needle is moving in the right direction with respect to the equity or value of their business. This is unfortunate because one of the very reason businesses are started is to build value and one day be able to cash in or have that value recognized.
So where is the best place to start if you can relate to this?
I recently listened to Sarah Lacy interview Chris Sacca who (click here) has an amazing story of triumph, failure and recovery to become a venture capitalist that has had some great wins (Instagram, Twitter, Kickstarter, and Uber to name a few). Chris was someone who did owe more than $2,000,000 personally and opted to not claim personal bankruptcy and chose instead work through the problem. Listen to the interview and not only will you be entertained but you will learn a lot (I apologize in advance for some of the language).