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| − | In [[The Personal MBA|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|Twelve standard Forms of Value]] (Form of Value #11 of 12).
| + | Capital |
| − | =Key Points:=
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| − | * 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.
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| − | * To provide capital you must:
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| − | ** Have available resources to invest.
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| − | ** Find a promising business in which you’d like to invest.
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| − | ** Estimate the business’ worth, its future growth, and the possibility of negative scenarios that would cause the loss of your capital.
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| − | ** Negotiate the amount of ownership to receive in exchange for the capital.
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| − | * By taking on investors, business owners can gather enough funds to expand quickly.
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| − | * 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.
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| − | =Questions for Consideration:=
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| − | * Does delivering value via offering insurance make sense for your business idea?
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| − | * If so, what do you need to plan for to make it successful?
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| − | Source: http://book.personalmba.com/capital/
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| | [[Category:mbi]] | | [[Category:mbi]] |
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