five major steps of 

entrepreneurship

STEP 1: MARKET RESEARCH = GAME PLAN

  • Read everything you can on your marketplace

  • Identify your market (B2B or B2C)

  • Identifying your decision-maker

  • List of questions (6-4-2)

  • Do not outsource

  • Adjust based upon each round of research

  • Does the market support your idea or approach?

STEP 2: FINANCIAL REQUIREMENTS

  • Learn how to read Financial Statements

    • Income Statement

    • Balance Sheet

    • Cash Flow

  • Put together Financial Statements for the first 5 years

  • How are you funding your business?

    • Self-funding

    • Borrow Money (Interest Expense)

    • Investment Capital (AR Lending, VC, Angel)

STEP 3: ORGANIZATIONAL STRUCTURE

  • Legal Entity (State Tax Law Driven = Accountant)

    • Limited Partnership

    • Limited Liability Company (LLC)

    • S-Corporation

    • C-Corporation

  • Identify Roles & Responsibilities of Your Team

STEP 4: TEAM

  • Best at Every Position (Experience/Track Record of Success)

  • Effective at Hiring

    • Interviews

    • Assessment Tools

    • Non-Compete Contracts

  • Training/Development & Firing

  • Gap Analysis

STEP 5: END GAME = $ELLING YOUR BU$INE$$

  • Business Brokers or For Sale by Owner

  • EBITDA (Earnings Before Interest Taxes Depreciation & Amortization)

  • Owner’s Discretionary Cash

  • Multiple of EBITDA or ODC (3-5 times)

  • Keep it Confidential

  • It Closes with a Title Company like a Mortgage

COMPANY

LEARN MORE

© 2020 by Ascending Athletes

CONTACT US

 

(888) 964-9990

1701 W Northwest Hwy

Grapevine, TX 76051

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