Comments on: Can you overcome five risks and create wealth? https://berkonomics.com/?p=3763&utm_source=rss&utm_medium=rss&utm_campaign=can-you-overcome-five-risks-and-crate-wealth Dave Berkus' business insights Tue, 19 Mar 2019 20:13:40 +0000 hourly 1 https://wordpress.org/?v=6.9.4 By: Arthur Lipper https://berkonomics.com/?p=3763&cpage=1#comment-127612 Tue, 19 Mar 2019 20:13:40 +0000 https://berkonomics.com/?p=3763#comment-127612 The entrepreneur’s risk of founding a business which becomes successful is the dilution risk of reduced ownership caused by equity financing. In most cases, the founders of successful businesses end up with but a small percentage of the ownership and never have the benefit of the perks which can be created by proprietors.

Funding through selling a share of revenues (a royalty) is better if the business is going to be successful and create wealth for the founders. If the success of the business is believed by the founders to be questionable then it is better for the founders to sell ownership interests. Unfortunately, it is reasonable for investors to ask themselves why they are so lucky as to have the opportunity of investing in a new venture?

]]> By: Ron Thompson https://berkonomics.com/?p=3763&cpage=1#comment-127609 Tue, 19 Mar 2019 18:59:03 +0000 https://berkonomics.com/?p=3763#comment-127609 With ” Managing Risk ” being very important to achieving success, your insights should resonate with aspiring entrepreneurs and those doing venture investing. Interestingly having seen numerous examples of founders and investors not being aware of the risks nor having good look ahead skills, this leads to unintended consequences. And why the returns from early stage investing need to be high – if supporting entrepreneurship is to be sustainable and rewarding.

]]> By: William Fisher https://berkonomics.com/?p=3763&cpage=1#comment-127602 Tue, 19 Mar 2019 17:01:34 +0000 https://berkonomics.com/?p=3763#comment-127602 Nice, crisp summary. Thanks, Dave.

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