Since your likely in business, a Business professional, or a Entrepreneur who is researching to find more information about the meaning or differences between CAP EX and Maintenance Capital Expenditures? I have great news for you. I am willing to help answer this question for all you Google Searchers. Today’s lesson will be directly about a particular line on your Investing activities cash flow statement, Operating Expenses details, and Balance sheets.
So everybody if you have not yet taken basic Accounting classes? Your likely like me and studying as you go. It’s a ongoing challenge. However you have no excuse in todays online information super highway and access. So in the spirit of sharing cool new Accounting information I discover? And for the fact I find myself implementing this new knowledge in cool ways. Let’s talk about today’s latest topic I discovered while researching what is Intrinsic Value in Investing . Which by the way is an entirely different topic in it’s own right. Now on to the main event. Maintenance Capital Expenditures.
What is this “Maintenance Capital Expenditures or CAP EX”?
You don’t need to be an Accountant or business superstar to run a small time Lemonade Stand in your neighborhood. So as you begin to sell lemonade? You will likely have cashflow on the balance sheet. This is where things become interesting.
Today we are talking about financials? I would love to detail what the line on your Financial Statement that say’s Maintenance Capital Expenditures.
When we look at a company’s cash flow statement which you should know “ENTREPRENEURS!” you will be looking for the line CAP EX or Maintenance Capital Expenditures.
Please don’t overcomplicate the info here. However when reading a Cash flow statement you will see a line called Capital Expenditures. It’s the exact same thing as a Maintenance Capital Expenditure. Cap Expenditures and Maintenance Capital Expenditures are the same thing. Often times I do see people who confuse CAP EX with Maintenance Capital Expenditures. Don’t let this confuse you. It’s the same.
Here are the two classifications that capital expenditures can fall under.
When
Maintenance CapEx: Is the required ongoing expenditures of a company to continue operating in its current state (e.g., repair broken equipment, periodic system updates) Operating Expenses.
Growth CapEx: Is the discretionary spending of a company related to new growth strategic plans to acquire more customers and increase geographic reach
According to a friend at a local Regional Law Firm and as TAX Attorney and Accountant,
An income statement reflects operating expenses incurred during a period of time.
Capex is considered a long-term investment, rather than an operating expense, because it has an economic life greater than a year (unlike operating expenses).
In conclusion in today’s lesson if you are running a Lemonade stand during the summer while teaching your kids the proper way to expense a business? I hope you would now clearly see? That Capital Expenditures and Maintenance Capital Expenditures are the same and they are for all the little things the business needs to operate and create free cash flow in the simplest of terms. Stay hungry, stay curious and be fearless when walking among Captains of Industry.
I received a question directly from the awesome searching entrepreneurs on Google Search today, So its with great privilege I get to share, explain, and answer this fragmented question to help all the future professional Entrepreneurs, Bankers, Accountants, and Corporate Attorneys out there. At the risk of sounding insensitive this question is slightly off base. So let’s dissect the elements and answer some facts.
“Who controls the United States Money Supply?”
The United States Treasury manages all of the money coming into the government and paid out by it. The Federal Reserve’s primary responsibility is to keep the economy stable by managing the supply of money in circulation. The Department of the Treasury manages federal spending.
So since we go this out of the way. Let’s move on to another question that creates value. Natuarlly we are going to want to ask the Question, “What makes the money valuable in business?”
“What makes the Money Supply valuable in Business.”
The value of any good is determined by its supply and demand and the supply and demand for other goods in the economy. A price for any good is the amount of money it takes to get that good. Inflation occurs when the price of goods increases—in other words when money becomes less valuable relative to those other goods.
If you have never watched the 2007 Business Movie that won all kinds of awards please watch this evil cruel film. It tells a disturbing story about a Oil Magnate mad man willing to go extreme lengths to use, abuse, and use dishonesty measures in business strategy in California in the early 1900’s.
There will be Blood “MOVIE”
“How does money get it’s value?”
The value of money is determined by the demand for it, just like the value of goods and services.
Business Landscape & Business Environment
Take a look at the volatility of the current Business market? It’s constantly changing second by second. It’s been my experience that in order to really look at company’s worth an acquisition development effort you must look at the long term future. Several questions come to mind. “Is the company easy and simple to understand?” “Does the business have a bright future because of the products it sells?”
Warren Buffett is always sharing that the business he looks for are the products and companies we love like Coca Cola. It’s the most recognizable brand in the world. And its future is certainly guaranteed to dominate most beverage shelves in nearly all stores and restaurants. So we can be pretty certain that investing in Coca Cola will be fruitful for investors. Coke is always looking at competition and alway’s buying up the best performing brands. If you did not catch the Coca Cola Acquisition of Body Armor last October? Please read about this Acquisition here. I mention this because I was contacted by a International Business News TV Station in Asia to comment on the transaction.
Acquisition Strategy in the Market
I would love to share a interesting view from the one and Only Mr. Bill Ackman who is the CEO and Founder of New York City powerhouse Activist Investment Firm Pershing Square Capital. At the expense of sounding like a Fanboy of Bill’s investment career? Which I am by the way. Bill personally is a sincere and just all around great guy. I really look up to his career as an example of where I am headed. He too was a Entrepreneur with a really tough road filled with hardship, adversity and impossible rejection. So I take comfort in his story that I am where I need to be.
This may sound ridiculous and surprising to some people who read this. But I am good with criticism I will receive sharing this next bit. Interestingly I will be going fly fishing with him sometime in the near future. But that is another story for another time. Let’s get back to business.
Research The Market For Acquisition Target Opportunities
Bill always said that when a downturn in the Market happens. He and his team of Analysts and researchers at Pershing look for opportunities by looking at Companies stock price that are trading for values lower than it should be. Meaning its undervalued stock price is an opportunity.
Activist Investing Strategy
Bill and his team shocked the Investment world during a market downturn when they made a trade off four hours of research making the Investment Fund Four Billion dollars in profit. Here is the short story.
If Wachovia wealth management company was trading at $1.84 and we look at the annual reports and the Debt on the books, and all the financials during a Due Diligence research session? And we decide the company is undervalued from the free cash flow and then look at the Stock price? We know there is opportunity for profit on this trade.
In doing this we look at the stock price and over all company valuation and decide is the company undervalued? Bill Ackman and his team mate Mick made a trade after 4 hours of research. And bought the Stock at $1.84 and later sold at around $9-$10 dollars a share. They bought 42 percent of the Company stock volume over 4 days. And made 4 billion dollars in profit just days after. Anyways all things considered? Bill’s Pershing Square Investment Fund made out like Bandits into the night. LOL Just incredible story.
Acquisition Consolidation
Before we move on? We must define Consolidation in Business Acquisition strategy? Consolidation in the most simplest of terms? “Is when a entity or a group of Investors Buys one Holding company, then buys other smaller companies or its competitive companies and folds these companies into it’s portfolio of companies creating value plus synergistic dominance in the selected industry.”
Professional Advisory Services with a proven track record to keep you safe during Acquisitions
I sincerely hope this complex post has given you a huge bang for your buck by clicking on my blog post on Google Search? This took me some time to write and rewrite. I won’t be winning any awards with my business blog. But at least I am able to share some basics in finance, business strategy, M&A and Entrepreneurship. If you would like to personally pick my brain and save time and weeks of research time? And if your a Senior Executive who would like a value based second opinion before accepting someones opinion you don’t value or trust? Myself and my team of Professional Advisors would be happy to Schedule a sit down and learn more about your mission.
If your team decides you would like to work with us? We can do the heavy lifting for you. We are also professionals for Executives and Business owners who require sensitive private secure services to protect all your teams professional reputations, leadership positions, and keep your Shareholders happy with your decisions and Job performance. My partners have built and operate company’s you see in the Wall Street Journal. I am lucky to have such wonderful mentors and partner advisors. And they can be yours as well.
Have you ever got the feeling your missing something critical before moving forward with a Position on Wall Street? I had that feeling as well. And since I did I did some basic research on the Media reports on TV. And what I found was interesting and concerning. I found the Media Wall Street rely’s on is incorrect most of the time. So we need to do some Due Diligence on Wall Streets Media Machine. And I can share with certainty. Those who are Hedge Fund managers and Active Traders will find these resources very useful. Check out this amazing little research group. Muddy Waters Research.
HEDGE FUND MANAGERS & DAY TRADERS RESOURCES
If your like most Day Traders and Hedge Fund Managers or Analysts you don’t have time to monkey around. Time is money, money is time. So you get busy! LOOK Before you stop and take that TV Report on a Public Company serious? I would stop and do some basic research. And this research group I was introduced to by Mr. Bill Ackman at Pershing Square Management is complete and utter gold. Link Below.
Ok, here is another resource for you guys that need it. Check out these guys as Wolfe Research Group.
Wether you need Research and Market Insights or Intelligence? This firm won’t disappoint. If they do? Well nothing is without risk. But we would highly suggest looking and meeting Market Research Teams.
If you found value on my little corner on the Web?
All I ask from you is to copy a link and paste it onto your blog or website or social media directing visitors my way as a thank you for the value listed here.
If your interested? Why is Wall Street losing traders? Watch the report or story on CNBC Youtube below.
The Kansas Public Employees Retirement System (KPERS) holds $35.9 million in Russian securities, the Missouri State Employee Retirement System (MOSERS) about $9 million. The Missouri Local Government Employees Retirement System (LAGERS) has $8.3 million in Russian holdings.
Read more at: https://www.kansascity.com/news/politics-government/article258931603.html#storylink=cpy
Buckle Up this is gonna be a fast course in how and what you can do superficially when raising money as a new Fund and some basic level rules. You are not gonna want to miss this.
Investment Funds Regulations SEC Regulation D
The one thing you must know about a Regulation D filing is you as a Investment Fund Manager can Fundraise “UNLIMITED” amounts of money.
It’s likely most Business Entrepreneurs won’t understand the difference between a Regulation A vs. Regulation D? Well to put things into basic perspective Cardone Capital is a Real Estate Fund that is Regulation A, and he has a Fund that is a Reg D 506(C). Typically Regulation A Funds are generally geared to Crowdfunding. Meaning you can advertise, do all the online marketing to attract non accredited and other qualified investors to your fund.
But unlike Reg D funds? Reg A funds need to have all the legal documents Paperwork and more set up and prepared before opening the fund to investors.
Public Companies have quarterly and yearly statements, yearly audits, and lots of transparency because the SEC requires a level of public scrutinization that Reg D 506(b) and Reg D 506(c) funds do not.
SEC Regulation D 506(B) Investment Fund
Here are some basics that need to be accounted for, under Regulation D 506(b)? This allows a new Fund to accept investments from an unlimited number of Accredited Investors and 35 non-accredited investors. (SIDE NOTE) Say you are going to accept investments from non-accredited investors this will be a ton of additional work. If you remember from other sections? A person who meets SEC guidelines of Accredited investor has a net worth of 1 million dollars or make at lease 250,000 a year income. If you accept Non Accredited Investors there is more disclosures. Most of the SEC guidelines and Federal Laws are written to protect the little guy who does not make over 250,000 a year and is not Financially Sophisticated enough to negotiate risk averse actions of Investments. So the Securities and Exchange Commission does require Investment Fund Manager and Professionals to know who your Investors are.
Usually its generally accepted by Financial Investment Fund Managers and Entrepreneurs that not accepting non accredited investors to invest in your new fund is easier for the new Fund Managers who are building their first fund. If you do accept non accredited investors? There will be more paperwork, statements, and you must over disclose to make sure the Non Accredited investor understand what they are getting themselves into.
Details of a Reg D 506(b)
If you are fundraising for a Regulation D 506(b) Fund? The accredited Investor must self verify themselves by checking a box on the forms provided. Declaring they are indeed a Accredited Investor. However for a Reg D 506(c) fund? The Fund accredited investor must provide a letter from a Financial Advisor, Accountant or Attorney, or some sort of proof they are indeed an Accredited Investor. But on a Reg D 506(b) they only need to “self verify” they are indeed a accredited investor. But what if they fudge or lie on the form? Yes they absolutely could. But you should be covered. The investor has verified they are sophisticated enough and understand the rules of investing in your 506(b) fund.
So how does a Reg D 506(b) Fund manager acquire investors? Well it’s important first to share that if you do in fact begin fundraising money for a 506(b) Investment Fund? According to SEC Guidelines and Mandates you are “NOT” allowed to mass advertise to attract and acquire clients. This is why you never see the Top firms in Private Equity publicly advertising for business.
This is important to point out. There is a difference for a Regulation D 506(c) Investment Fund? You can Advertise for a Regulation D 506(c) Investment Fund to Attract Accredited Investors ONLY.
RAISING CAPITAL FOR BOTH REG D 506(B) and 506(C) FUNDS
You will need to File your FORM D with the SEC. (15days after receiving a Check from a Investor)
Your Form D should be filled by your Securities Attorney – NO EXCEPTIONS
You are allowed to Raise Unlimited amounts of Funds for both Red D – 506 Funds
You must follow and file with the State as well
506(C) Funds Managers need to Verify the Investor is an Accredited Investor by w2 or Tax docs.
506(C) Funds Managers are allowed under SEC Guidelines to Mass Advertise
506(B) Funds are not allowed to advertise. Your only allowed word of mouth referrals. And allowed to accept individuals who are personally already known to you. No Exceptions.
Kansas Insurance Agency Forms for Investment Funds and Professionals (CLICK HERE)
However for Reg D 506(B) and 506(c) Investment Funds Fund managers are required by SEC guidelines to only pitch investment fund opportunities to individuals they already have met. So the next time your at the country club and a Dentist begins chatting me up as a Entrepreneur and learns I am starting a Fund? I am not allowed to pitch the Dentist this first time meeting. The rules are strict. But that is how this world works.
Regulation A Investment Funds
This article is not about SEC Regulation A Investment Funds. However I would like to expand just a bit more on this interesting topic. One of the downsides of REG A Funds is you must have them Filed and prepared before going out into the market to raise funds for this type of Fund. This includes your Attorneys and your all the accounting prep and much more. And honestly if your a Entrepreneur that can be simply out of reach. Plus the transparency is much more strict. Meaning you will need to have reports publicly published every quarter or more to Investors and the Public.
With Reg A Investment Funds you are allowed to Advertise on a Mass Scale to attract Investment Capital LP’s. This is good for the person who does not make 250,000 a year and for those who are not sophisticated enough to leverage having nearly no experience with risk in Investing. The SEC does want to protect Grandma or John who do not have a net worth over 1 million dollars.
In closing? I would love to take the time to share a Big and warm Thank you to my buddies in Utah for always hooking me up and putting me on the right path. And to the rest of you? I genuinely hope you leave with a better understanding and some guidance about SEC Reg D 506(B) and Reg D 506(C) Investment funds.
Keep checking back soon enough I am learning just a ton on my journey and I hope to share a small piece with others out there who would love to know more. If you are a Executive who wants to take the next step of starting a fund and learn how I have been so successful making headway in Financial Circles? And want to know how you can fundraise easily and smoothly? Please Email me below for a few hours of One on One Coaching. Click the Button.
One of the most fundamental skills that can not be taught is having Street Smarts and basic common sense. You either have it? Or you don’t. When things don’t go your way, and often they don’t? You must get fired up. And go after your goal. Whatever it takes. Sometimes I get so stressed about my mission not proceeding fast enough I become flustered and begin drifting into territory that feels extremely unnatural. But my common sense comes back to me after I decompress. So let’s get on with today’s lesson. “Never ever allow anyone the satisfaction to impose their will upon you, or never allow them to push you around!”
No NO! If your like me as a Entrepreneur you end up having to do a lot of out reach and contacting people you do not know. And here is a common theme. Crickets.
You don’t hear back nor do they give you any courtesy of returning your message or phone call. What can you do if this happens to you? Well there is a lot you can do. But for todays lesson is about hustling the streets and having common sense. So let’s get on with what todays lesson is all about. Common sense! Here is what you should do that is basically obvious. And weirdly many people surrender and choose not to do this.
Some people have called or labeled me ” mildly and strategically Crazy.” But in all honesty? You have to be if your a successful Entrepreneur. I literally will jump on a Airplane or Hit the Streets of New York City and track down the Influential Business People that I need to get in front of. Look! People are busy or just Distracted. It pays to go show up on their doorstep and say….”Hey! I found ya!” Look I hope it wasn’t a ridiculous idea to come ask you this?”
New York City Hustle | Hitting the Streets
You probably want a story of how I secretly can make everyone who is influential give me attention if the ignore me? Right? Ok. Here is a Tip! Go Knock On Their Door. Ok that may only work for a handful of you. But if you do not have big brass Kohonas? Your probably not cut out to be a Entrepreneur. Sorry. Not Sorry.
Honestly “YES! I do have other options for problems like this. But if you want access to tips like that? You have to schedule an hour coaching time with me and then we work on that problem together. Minimum of 2 hours up front. And if your thinking about my street smarts and common sense? Absolutely”I have other ways. But that won’t be revealed here. Please email me for Coaching. Go ask people who know me if I am worth the cash? I bet they will shock you.
Business Salesmen and Entrepreneurs
If your a Entrepreneur like myself? You only got three options when deciphering or understanding people’s behaviors in business.
If someone say’s No Thank you. That does not mean you get to be a entitled jerk back to them. Be confident and hopeful with your attitude. Be pleasant. But be persistent. I do understand most people do feel uncomfortable when forced to the bargaining table. But its your job to make sure they are comfortable. To the jerks who want you uncomfortable? Make sure they don’t see you sweat.
If you are forced to the Bargaing table. Know you can walk away. You don’t have to agree to anything. I have to make this very clear to all of you’s.
You Have To Be Able To SAY…”NO!” and learn to negotiate.
Never allow anyone to push their will or position on to you! Mark Cuban has given me personal guidance on many occasions and reminded me people are sometimes Jerks. And sometimes they are testing to see if your weak. Try not to take It personally. Stay off Social Media!! Its rigged. Pay someone to promote you. You have better things to do anyways.
If you can not say “No” to people? You will be enslaved or end up doing something you do not want to do. It’s that simple. So the next time someone push’s their opinion or will onto you? You can let them be tyrannical and agree to do whatever they ask. B. You can shut up and be misarable. C. You can let them think they are getting their way. And walk away. Or D. You can negotiate!
Either way you do only have one choice. “What’s best for you.”
Enjoy and I hope you learned something here. It’s not much for today. But at least it’s something.
What is the elusive often misunderstood Trust. Wealth Management Topic
A trust is a contract that gives an individual or an institution—like U.S. Bank, for example—the authority to hold legal title to assets while managing them for the benefit of others. Trusts can help you ensure that your assets are distributed and managed according to your wishes. US BANK Rich Snippet
I would like to introduce you to Trusts and the history and also how they are used in Banking.
In the 12th century and middle ages of English Knights whom were about to go on crusade needed a safe place to keep their wealth and have it benefit someone else “IF” they were captured, tortured and placed into indentured servitude for the rest of their short lives. So wouldn’t make sense to have a place to have all your wealth act like a “Will” in a way? Of course. So they would go to the London Finance Center which is a little Banking Town inside of London the City and its sole purpose in this small finance town is to act as a separate entity to ensure personal Land, Assets, and wealth was taken care of and used in the correct manor under English Law. These stewards in Banking were often bound by law so nothing could ever separate the Beneficiary from the Assets.
The legal owner would hold the land for the benefit of the original owner, and would be compelled to convey it back to him when requested. The Crusader was the “beneficiary” and the acquaintance the “trustee”. The term “use of land” was coined, and in time developed into what we now know as a “trust”.
Click on Image For Wikipedia Page
The Beneficiary is the person who is entitled to the benefits and entitlements of the TRUST. Now with this said. Beneficiary’s do not “OWN” the TRUST. They are the Beneficiary of the Trust. Trustee’s are the legal stewards of the land or Assets. Often times Attorneys have their own Trusts being officers of the courts in United States.
Is a beneficiary an owner of a trust? In legal jargon, trust and will attorneys refer to Trust beneficiaries as the “equitable owners” of the Trust. Beneficiaries will receive money and other assets from the Trust either outright (meaning being paid all at once) or in smaller amounts over time, based on the provisions in the Trust document.
Thanks for reading, we hope you found this useful. Use the links if you would like to know more.
If your a Entrepreneur you better believe you will be under the microscope financially when handling other People’s money. And this is how you stay safe and stay lawful in the process.
First you need to understand my tone when I am writing this Post. It’s serious fucking business. Admittedly I am known for not being a push over and being a little edgy at times. But someone must demand excellence from others. The Military was responsible for beating this into me. So if your sensibilities are chapped or offended? Maybe you should not read this article. And this article is NOT LEGAL ADVICE.
Many entrepreneurs do not stop to consider how their ignorance, and inflated ego is causing their own limited growth or certain failures. If you are pandering to the general public for social media likes. You are not fooling anyone. As a matter of fact you are alienating real business opportunities and real qualified investor opportunities.
Real business people in your community are always watching your every move. They know a fucking Fraud from a real struggling take no prisoners entrepreneur. There’s wealthy individuals, Investment Partners, and finance professionals in your community who are incredibly sophisticated financially. They know a real authentic Entrepreneur from a social media fraud.
Live by this advice. Be authentic, be incredibly generous and politely carry yourself with absolute class. Watch your movements and how you do business. Have some pride and help your community.
If your in the column of qualified or Accredited Investor from the SEC? And you would like to share your informed opinion with me how I am right or wrong in this Post? Im positive I would be open to it. Please Email me. 🙂
And if you have read previous posts from my Blog? It can not be stressed enough. How important recruiting a successful community leader and Mentor is! It’s so important you will be doing yourself a disservice if you do not recruit a mentor in your community.
Still most Entrepreneurs do not know what they are doing. So If you do not know what your doing? Recruit professionals who do know what they are doing. This post is meant to keep your professional reputation intact. And keep you safe from criminal investigations that may end with you locked up in a jail cell and labeled a fraud in the local Newspaper.
What you should not be doing?
The Following suggestion of mine, is what you should NOT be doing if your a Entrepreneur who is seeking fundraising for your new startup. If you want to be successful? The following strict bullet points are suggestions you should take to heart.
A. You should not be approaching wealthy community members with a idea that has no proof of concept.
B. You should not be selling yourself with the next FACEBOOK idea to the wealthy in your community.
C. You should not be accepting any checks or money from anyone in the community without a team of pro’s.
Under “NO CIRCUMSTANCES” do you ever fundraise in your community alone with just an idea. This will always end badly and if you ask me? Is tantamount to criminal fraud in the highest degree. You have no business taking money from anyone and managing funds in a business checking account if your a new fresh entrepreneur. Are we on the same page? GOOD!
If you are not humble and not reliant on Business Professionals? It’s likely you will end up on American Greed as a failed Entrepreneur and Criminal. So do everyone a favor. And do things the right way. And for “God’s Sakes…Don’t be a Instagram Playboy. That Screams Your A Fraud and Criminal. Your Welcome.”
What steps should you be taking as a Entrepreneur?
You should be interviewing Professionals in your community for the right “fit”!
Before we can advance, I need to drive home the importance of this step. This will provide you a few professionals you will need to recruit if you are starting a business. This formula will not fail you and using this formula will keep you safe legally. It will absolutely boost your community presence as someone to take seriously and will begin to create a positive buzz about your business venture. So please take my advice and use it. It pays massively overtime and will begin to make you a trusted community voice and leader.
The reason I lay this out here is because..Many people in your community will dismiss you as someone to take seriously. In todays environment of Bull Shit Social Media Posts and Online Con-Men and Con Women? If your not squared away with a team of Professionals. People will gossip about you. And will privately call you a Fraud and speak poorly about you. Until proven otherwise.
This post is meant to give you the Entrepreneur real direction on how to fundraise and become a success. Their are literally so many criminals and frauds in the business entrepreneur environment and on social media. You will likely be judged as just another “CON MAN OR WOMAN” until people can clearly see your helping your community with a team of professionals in tow. So beware.
Recruit a Business Attorney
First step in your business entrepreneurship career is to interview and recruit general advisory legal counsel. Having a Business Attorney close to you will ensure two things. You stay out of legal hot water, and you will have an established advisor help you negotiate decisions in business. This alone will negate most of the problems you face in business. My personal Attorney is a Bad Ass. We have worked on a Inner City Mayoral Political Campaign in the past. He is Corporate Counsel and always available when I need him. And honestly speaking? Also available as a Team Mate when I visit and am invited to high class Cocktail Business Receptions with our City’s elite.
The benefits are 100% GOLD! Your counsel’s advice will help you along the journey. Keeping you safe from making stupid mistakes. And when it’s time to start accepting checks form Investors? He will know how to create Legal Documents to keep you safe from legal action or worse. Criminal Investigations.
Difficulty of this process?
Look everything has a downside. I am not saying call up your local Big Law Firm and try to recruit a $900 an hour corporate attorney you don’t already have a relationship with? Not what I am saying! Find a small Business Attorney in your City someone you already know who is a trusted Business Attorney or Someone you trust to introduce you to a Attorney. Telephone the Attorney and go to lunch. Be prepared and ask relevant questions. Look for the right fit for you. And establish a trust based Relationship moving forward. It’s too easy for you inexperienced name to be dragged through the MUDD by not having the right professionals around you. Capesche? Good!
Small Trusted Local Accounting Firm
Ok let’s say you have began your Entrepreneurial mission, you have been preparing the community for fundraising. Your next step is to begin searching and visiting small local “TRUSTED COMPETENT” Accounting Firms. Having a small trusted and competent accounting firm to handle all financial aspects of bookkeeping and payments is extremely vital and a cornerstone to your success as a Entrepreneur. If you will be handling any money from Investors? Your small accounting firm and your local general counsel need to be working with you and together. If you accept a investor check from anyone you need these 2 people at that table. Or at the bare minimum involved. A. Your General Counsel and Attorney and B. Your Local Competent and Trusted Accountants. I would also have the meeting at the Office of your Attorney or Accountant. This is my advice.
This will prevent you from having any problems moving forward. But if you want to play it safe and keep your reputation from being dragged through the mud? You must take this advice and use it. And for the record you should already have a business plan on the table before you accept a check from any investor. It’s just good business. Many entrepreneurs who do go the start up route? Do not understand that it’s foolhardy to sell a start up idea with no numbers or no proof of concept. If I were you? Don’t ever sell a Start up idea with just a piece of paper and a idea. Never approach investors with just a piece of paper and a idea.
YOU NEVER HANDLE FUNDS ALONE
Let’s say for instance your Business is on it’s way to being a start up. Since your startup business is it’s “OWN ENTITY”. The role of the Controllers? Controllers are the people inside the business with authority to approve or deny spending of funds for your business entity. You will need A. A Controller who’s integrity is professionally sound and someone that has previous experience. And B. You should in good conscience stay away from handling funds alone. Always have another signature and confirmation for spending funds or approvals. To play it safe? You should have at least 3 individuals who are responsible for the spending or denial of dispersing funds. And at any time 2 of these individuals should give permission for the business to spend any amounts of money over say….$500 dollars. This keeps you safe as a entrepreneur and will keep you legally out of trouble.
I would choose 2 Accountants as fellow Controllers of the Business checking account. This is the safe route. And will ensure your business is safe at the end of the day. I can not stress enough how important accountants are to your business. Because you will need to pay your Employees and need to file “TAXES”. So they are extremely important to your startup business.
Here is another reason I suggest having a trusted local Accounting Firm as partners in business? They will invite you to spend time with other Business owners. This begins to establish your trusted name in the business community. And if you ever need a referral to another business professional in your community? They are there to help.
In conclusion you likely are beginning to see how important it is to have professionals in your business career. If your going to be handling other peoples money in Business and as a Entrepreneur? It is mandatory you use this post as a rough blue print and direction you need to take to A. Stay Safe Legally from Criminal Probes, and B. Building your Professional Reputation as someone Trustworthy in your business community. Because all things considered to many Entrepreneurs I meet “HAVE NO CLUE HOW TO RUN A BUSINESS” or are “Financially Illiterate”. This will help start you on the right track and begin to help you move in the right direction as you stumble along as a Entrepreneur.
If you have been planning to make the move into the Private Equity space, your probably wondering “How can you get a Job in Private Equity?” Right? Well this post is all for you!
I imagine many of you who visit this Post. Are currently working as an associate at a large New York Bank or Financial Institution? Or maybe your a broke college student that just finished earning your MBA and your wanting to get in the door for Private Equity? Great news for you. What I am about to share with you. Comes from experienced Private Equity Partners and Professionals who have been there and done that! So let me introduce you to a Youtube Channel I have been watching on this subject. It’s that good!
I need to introduce Mr. Peter Lynch. Who is Peter Lynch?
According to his website “A Simple Model”, Peter Lynch, is previously a founding member of the investment team at Hilltop Opportunity Partners (“HOP”), a merchant banking business launched by Dallas-based Hilltop Holdings Inc. (NYSE: HTH). Before joining HOP, I spent 8 years working for Argenta Partners, a private equity firm focused on control-only equity investments. From 1989 through 2016 Argenta achieved a cumulative annual internal rate of return for all invested limited partner funds of 27% net of GP carried interest and fees. Prior to that, I worked with the M&A team at Rabobank International in New York City, and with JPMorgan in Buenos Aires, Argentina and in Santiago, Chile. To prepare myself for the professional world I attended the University of Pennsylvania.
To drive home how important it is to get your foot in the door for Private Equity? I would highly suggest you watch this One on One interview between Peter and his friend Brett. Brett is a Partner of a Private Equity firm, finished his MBA at Columbia and has risen in the Partnership of his own private equity firm. Watch the video and take notes to gain an edge on “How to get a Job in Private Equity.”
In this video below you will learn a few things and “How to’s”
-Develop a network for getting in the Door.
-Follow Up on past opportunities while simultaneously developing a relationship.
-Fast tracking your way to succeeding in the Private Equity Space.
-What you need to commit to and how to make things happen for your interviews.
To learn more about Private Equity? Please visit Mr. Lynch’s Youtube Channel (CLICK HERE!)
Take it from the Private Equity Pro’s who have worked and risen in Private Equity. this. The video interview below is a must watch, if your wanting to learn “How to get a Job in Private Equity?”
I do hope you enjoyed this interview as much as I did. This entire interview was fantastic.
In conclusion please be sure to go check out Mr. Lynch’s website all about Private Equity “A Simple Model” I have to include the brilliant training Mr. Lynch offers and teach’s on his Website. Its a training website for Financial Professionals in Private Equity.
Thanks for coming by, I hope this brings you incredible insight and value like it did for me.
If you are a Entrepreneur, Accountant, Tax Attorney, Businessman or Wealthy Individual you already likely know what the 6 Assets you should list on your Financial Statement? Great! But if you don’t know? Maybe this is an article you should read. Because I am going to dive in and share what these 6 Asset classes are?
The six asset classes you want to include on your personal Financial Statement is not only Real Estate property income. But it’s also other income streams like Stocks, Bonds, and definitely NOT your home. We will dive more into this later. You will want to stay tuned because I am preparing you to become a Financially Literate confident business player.
Ok So I appreciate you showing up and reading my Blog post, I do believe I am beginning to have a few heavy hitters from Wall Street read from JP Morgan. I appreciate you guys. 100% And I Thank you. So back to business here. What are the 6 types of Assets Accountants and Business Personalities list on their personal Financial Statement?
Let’s start with an activity as we dive deeper into this thought of what is the six Assets a business individual needs to list on their Financial Statement? And by the way when you finally have enough money and assets to fill out a Financial Statement that day when you see it take shape is liberating. Absolutely. If your just realizing one day that you Made a Million Dollars in one year? This video by Patrick Bet-David is for you. Watch It!
Ok let’s get back to Asset’s. What are the Six Assets types you should list on your Financial Statement?
Bank Accounts
Bank Accounts mean your Personal Bank Accounts, not your Company Bank Accounts. It should go without saying that Commingling Bank Accounts with your Company’s money and Personal Money should never happen. I hope I don’t have to explain. It’s just bad for business. Capeche? Great Moving on.
2. Stocks
Do you have Stocks in the S&P or an Account with Charles Schwab or Edward Jones? Or even Robinhood? Then you will want to individually list each in Subsections on your Financial Statement. I hope your learning this is the Big Leagues.
3. Receivables
If your a business owner or you have personally loaned money out to your Community your going to want to list Receivables. To take this definition a bit further and be more politically correct with the Accountants who will read this. I grabbed this definition from a reputable source online. Receivables is the balance of money due to a firm for goods or services delivered or used but not yet paid for by customers. Accounts receivables are listed on the balance sheet as a current asset. (R) is any amount of money owed by customers for purchases made on credit.
4. Real Estate
Ok this one could be tricky for most who are out there and do not have an Accounting Background. But when your listing your Real Estate assets on your Financial Statement you need to list them correctly. What do I mean by this? We want you to list your Real Estate Assets in a selected manor. Meaning take the Fair Market Value of your Real Estate Asset and write this number down. Now make sure you do not include the sum of the Mortgage you still owe on the Asset or Property. Make Sense? Ok Good! Speaking of Real Estate I want you to go check out this Madman named Ben Mallah.
Ben Mallah’s Youtube channel all about Real Estate is surely to entertain you with how crazy it is. LOL Here is a video from his Channel. Between you and me, I have told Ben several times how much I appreciate his crazy Youtube channel and him as a Investor. He is a solid Big Loveable Bear! LOL Ben taught me personally about 1031 Exchanges and Deferred taxes. These topics will be a post all on it’s own.
And for our last 2 Asset type’s you should list on your Financial Statement? Drum Roll……!
5. BOND’s
It should go without saying you should list your Bond assets on your Financial Statement. After all it is a legitimate Investment Asset. What is the proper definition of a Bond? I grabbed this online and this should help with describing this asset class. Bonds are units of corporate debt issued by companies and securitized as tradeable assets. A bond is referred to as a fixed-income instrument since bonds traditionally paid a fixed interest rate (coupon) to debt holders.
If you need to brush up on the How the Bond Market Moves and Operates? Please be sure to check out my former post on the subject. Here!
6. Business Value
When sharing this Asset type on your Financial Statement you should consider that you want to share the (NET) Value of your Business. What you listed on your Tax returns. NOT what you think it’s worth. To many business owners I meet have a value that is unrealistic. And fail to consider thier EBITDA and other costs. It becomes a big mess in the end and certainly lead you down to having unrealistic expectations. Be honest and be straight about your Busienss Value. That’s the smart play.
What is the definition of Business Value? It is the standard value measure used in business valuation. A Partner with PWC shared with me today, business value is the entire value of the business; the total sum of all tangible and intangible elements. Examples of tangible elements include monetary assets, stockholder equity, fixtures, and utility.
In conclusion you should have picked up some good information from today’s Article and Post. Generally speaking if you look at the Cash flow, and asset patterns on your Financial statement and the Assets you list on this Accounting form you can see where your lacking and where you should add a little value of shore up weaknesses. Thank you so much for reading and IF you have any questions or Requests? Please email me at [email protected] and please tell me if I am missing the mark or really making a difference? I love helping others in Business. In fact with so many people who did not help me and blew me off? I feel it’s my duty to be open to helping others.
Thanks everyone Take Care – Please Comment, Like, and Share. And I will catch you on the next artcle.
