In [[The Personal MBA]] //capital// is the purchase of an ownership stake in a business. If you have resources to allocate, you can provide capital to business owners to help them expand their business. It is one of the [[Twelve standard Forms of Value]] (Form of Value #11 of 12). 
!Key Points:
* Capital is the purchase of an ownership stake in a business. If you have resources to allocate, you can provide capital to business owners to help them expand their business.
* To provide capital you must:
** Have available resources to invest.
** Find a promising business in which you’d like to invest.
** Estimate the business’ worth, its future growth, and the possibility of negative scenarios that would cause the loss of your capital.
** Negotiate the amount of ownership to receive in exchange for the capital.
* By taking on investors, business owners can gather enough funds to expand quickly.
* By acquiring a certain percentage of the business, investors benefit from its activities without active involvement. Investors hope to receive a higher rate of return than other methods, like leaving the money in the bank.
!Questions for Consideration:
* Does delivering value via offering insurance make sense for your business idea?
* If so, what do you need to plan for to make it successful?

Source: http://book.personalmba.com/capital/
bag
mbi_public
created
Thu, 20 Jan 2011 21:12:14 GMT
creator
dirkjan
modified
Thu, 20 Jan 2011 21:12:14 GMT
modifier
dirkjan
tags
Term
The Personal MBA
creator
dirkjan