Receiving an investment signifies that you are receiving a prepayment for future costs and expenses. To generate revenue, you must cover these costs upfront. If you lack the funds necessary to manage current expenses while aiming to raise revenue, you might need to borrow money or attract investments. However, as a recipient of these funds, you cannot use them freely; this money does not belong to you. Legally, your options for utilizing this money are limited: you can either receive it as a salary from your expense account, as a dividend from profits after deductions as a shareholder, or pursue official management incentives. This underscores that the invested funds are not your own. When funds are invested, it implies that profits will be derived from someone else’s money, which you will share with the investor. Although investment alleviates the immediate pressure of expenses, it simultaneously heightens your obligation to generate profits promptly. Being fully funded does not equat...
Founded in 1991, the American craft beer company, New Belgium Brewing Company, is unique because its employees hold all the shares. Since 1996, the founding couples have distributed 10% of their shares to employees annually as incentives, and they have now completely transformed the company into an employee-owned entity. Currently, the founders hold no shares in the company. Furthermore, all employees receive financial training to enhance their management mindset. Training in financial statements, which includes everyone from minor clerks to executives, is standard practice for the company. Running a company without the ability to read financial statements is like signing a contract without understanding the terms. - Joseph’s “just my thoughts”