What are Option Pools? How do Option Pools affect company capitalization? An option pool allows startups to budget out how much equity they will reserve for hires between each funding round. Without an option pool, employee equity would...

This Video Explains Need vs Want in Entrepreneurship

Master Checklist

How doe you Monetize a Business Idea? 1. Validate that there is a market for your idea. · 2. Talk to people in your chosen market. · 3. Create a prototype.

What are Registration Rights in a Term Sheet? A registration right is a right entitling an investor who owns restricted stock to require that a company list the shares publicly so that the investor can sell them. Registration rights, if...

What are Redemption Rights attached to Preferred Shares? The right of redemption is the right to demand under certain conditions that the company buys back its own shares from its investors at a fixed price. This right may be included to...

What is a Business Exit Event? How is a Public Offering a business exit event? An Exit Event is an event where founders and early investors can sell their interest in a company for cash. An exit can be an initial public offering (IPO) or...

What are Protective Provisions in a Term Sheet? Protective provisions are terms that allow preferred shareholders to veto or block specific corporate actions. Protective provisions can help protect the interests of minority shareholders...

This Video Explains Prior Experience and Entrepreneurship

What is a liquidation preferenc in preferred stock? A liquidation preference is a clause in a contract that dictates the payout order in case of a corporate liquidation. Typically, the company's investors or preferred stockholders get...

What is a Strategic Acquirer in a Startup? What is a strategic acquisition? Strategic acquisition is more concerned with ensuring that the merger fits within the expectations of the company's long-term plans for the business. To achieve...

What is a Stock Vesting Schedule? A vesting schedule is an incentive program for employees that gives them benefits, usually stock options, when they have contractually fulfilled a specified term of employment with the company. The...

What are the Steps in Developing an Operational Plan? Operations plans are extremely specific, detailed documents that clearly define how a department or team can contribute to reaching specific company goals. They typically outline the...

What is Stakeholder Analysis? Stakeholder analysis in conflict resolution, business administration, environmental health sciences decision making,[1] industrial ecology, public administration, and project management is the process of...

What are the Special Employee Provisions in a Term Sheet? The parties often negotiate numerous employee-related provisions into the term sheet. These provisions serve as control mechanisms to either incentivize current management or...

What is a Small Business Investment Company (SBIC)? An SBIC is a privately owned company that's licensed and regulated by the SBA. SBICs invest in small businesses in the form of debt and equity. The SBA doesn't invest directly into...

What are Shipping and Logistics Functions? Shipping is the act of physically transporting goods or materials between locations. Logistics, on the other hand, is the process of managing an intricate operation. Logistics is used in a vast...

What is the Self-Employed Contributions Act (SECA)? The self-employed pay Self-Employed Contributions Act (SECA) taxes on net earnings. SECA taxes also fund Social Security and Medicare. The self-employed pay both the employee and the...

What is Growth in a Startup Venture? There's an initial period of slow or no growth while the startup tries to figure out what it's doing. As the startup figures out how to make something lots of people want and how to reach those...

What is a Business Founder? The founder is someone who first started their company. They thought of the original idea for a product or service and started the company to offer that product or service to their customers. A founder does...

Why are Website URLs and Social Media Handles important for a Business? Having social media handles will help your business communicate with your customers in real-time and provide timely support. And this way, you can build trust and...

What is the Window of Opportunity? How does the window of opportunity relate to exploiting an entrepreneurial opportunity? The "window of opportunity" states the accurate time for a firm to enter into a new market and grab an opportunity...

What are Wicked Problems in entrepreneurship? A business problem might be wicked if it includes: Stakeholder disagreements. Complex roots of the problem. A lack of precedent for the problem. Difficulty solving the problem or identifying...

What is Operational Analysis of a startup venture? How is an operational analysis carried out? The process of operational analysis involves gathering data from various sources, such as customer feedback, employee surveys, and financial...