Chapter 18

Capitalizing a Business: How, When, Why, and What

IN THIS CHAPTER

Bullet Starting the process with a well-developed business plan

Bullet Understanding why and how businesses are valued

Bullet Looking at common business-valuation methods

Bullet Diving deeper into the world of debt-based capital

Bullet Digging further into the mysteries of equity-based capital

Bullet Raising capital with some tips, tidbits, and traps

The birth of almost every type of business organization — small or large, public or private, for-profit or not-for-profit — starts with two simple concepts. First, an idea is needed on which the vision and mission of the business will be based. And second, capital needs to be raised to support the launch of the business. As for the “idea” part of the business, we’ll pass on providing any in-depth discussions related to this topic because countless books, publications, articles, and so on have been produced ...

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