For you, as a founder, it is of utmost importance to maintain control of the company. Therefore, it is extremely important at an early stage to pay attention to corporate governance issues, especially the composition of the board of directors. This will help to give out cards in your favor before any subsequent rounds of financing, when investors show interest. If you do not think about the issue of corporate governance in advance, this can be detrimental. Having lost control of the board of directors, you can hardly restore it.
Fortunately, founders can rely on several legal strategies to maintain control over their advice and companies. The extent to which they will apply these strategies will depend on their familiarity with them and on their use in fundraising negotiations. Continue reading
Profitability – this term is heard by almost every adult. But not everyone understands what this term means. Not even all businessmen can explain this term. After starting to publish articles on small business performance, I began to receive letters from my readers asking them to explain the difference between business performance and profitability. And in general, talk about profitability – what kind of concept it is, how it is determined, etc.
What is profitability.
Basically, these are letters from those businessmen who came across lenders or investors. And one of the very first questions they were asked was the question of the profitability of their business. But not only for the sake of lenders, it is necessary to have elementary concepts of profitability. Profitability is one of the main indicators of business performance, which illustrates the effectiveness of all, without exception, business costs, the effectiveness of all its activities. Continue reading