What is venture capital?

Venture capital is financing that’s invested in startups and small businesses that are usually high risk, but also have the potential for exponential growth.

The goal of a venture capital investment is a very high return for the venture capital firm, usually in the form of an acquisition of the startup or an IPO.

Why would you want to use venture capital?

Venture capital is a great option for startups that are looking to scale big — and quickly. Because the investments are fairly large, your startup has to be prepared to take that money and grow.

Advantages of working with venture capitalist firms

The biggest advantage of working with venture capital firms is that if your startup goes under — as most do — you’re no...

We opened our doors in 2010 with less than 100k in revenue. Despite bringing in money the first year, I technically lost money due to start-up and capital expenses. I even had to get a loan from the IRS to cover taxes that year that took me four years to pay off.

It was my first exposure to the “Oh wow, THIS is how businesses fail”. I had to grow quickly and with a sense of urgency to keep enough cash coming in to pay for the baseline business expenses. I was hustling while crossing my fingers that my hard work would pay off. It did. I grew so fast that I had to hire people quickly that cared as much as I did….and I did. The second year we grew by 630%. We followed that first year burst with an average of 73% growth every year for the next ...

“Would you like a receipt?” We hear this question so often in daily life, we almost just tune it out with an automatic “No thanks.” But, keeping track of your receipts is actually very important, especially for small business owners and entrepreneurs. This is because if your tax returns are audited they need to be able to meet the strict substantiation requirements of the IRS.

Mark J. Kohler, author of The Business Owner’s Guide to Financial Freedom, notes “It’s true that you could argue what’s called “the Cohen Rule,” that you can use “other credible evidence,” or rely on IRS Publication 463 which says that you don’t need to keep receipts for expenses under $75, but why get into a fight? Arguing with the IRS can cost you a lot more time a...

Crowdfunding may seem like a new idea, but it actually has a long and rich history with roots going back to the 1700’s.

However, modern day crowdfunding — where people and businesses raise small amounts of money from a large group of people, usually online — has its origins in 1997.

In this infographic, we look at some of the historical movements that led to the development of crowdfunding as we know it, as well as major events over the past two decades that have shaped modern day crowdfunding.

Infographic text transcript:

1700’s: The Irish Loan Fund

The Irish Loan Fund was established by author and Irish nationalist Jonathon Swift in the early 1700’s as a way to provide loans to poor but creditworthy people in Dublin.

The Fund was succes...

Every single time I look up the value of the AOL Time Warner merger it shocks me. And I’ve covered this industry for nearly 20 years. $350 billion. The biggest merger in history, at the time. Steve Case– the man who was the architect of it, who stepped aside from his CEO job in order to make the deal happen– is not surprisingly a man who got used to be considered crazy.

It took AOL seven years of evangelism and partnerships to get to some 200,000 customers and an IPO of some $70 million. When the company started, it was illegal for commercial entities to be hooked up to the Internet, only 3% of the country was online, and Sears was one of the most innovative Internet pioneers. Sears!

The story of the early days of AOL as told to us by Steve...

To say that Rand Fishkin is the ‘Godfather’ of the SEO industry may not be technically true, but it kind of feels that way.

He’s been a thought-leader in the digital marketing and search space since as long as I’ve been in the game (12+ years for me which is an eternity in anything digital these days), so if there were a Mount Rushmore of SEO (or digital marketing), he’d probably be on it.

He’s been showing people like me how to slay the dragon that is Google for years, and lots of folks owe their ability to have careers in the digital marketing space directly to his efforts.

Not only that, but he also Co-Founded a pretty well-known SaaS company called Moz along the way (with his Mom I might add), and built it into one of the best and most ...

When you’re figuring out how much a startup CEO's salary should be, there are a lot of factors to consider.

How much can the company afford to pay? What stage are you in? How much runway do you have? If you already have investors, what are their thoughts on the issue? How much do you need to support yourself and your family?

Those are just some of the questions that are probably rolling around in your head, whether you’re trying to figure out your salary as the CEO, you’re trying to figure out your co-founder’s salary as they take on the CEO position, or you’re thinking of bringing in an outside hire. Add on location, marital status, age, savings… and the list goes on and on and on.

So how do you determine what an average startup CEO salary sh...

A lot of people confuse crowdfunding with crowdsourcing. While they are similar in that they both allow people to primarily leverage mass-community collaboration, they relate to two different things entirely.

So, what’s the key difference?

The short answer:

Crowdfunding is the process of sourcing money or funds from a group or groups of people.

Crowdsourcing is the process of sourcing information or skills or end products from a group or groups of people.

The long answer:

What is crowdfunding?

In a crowdfunding campaign, a person, business, or organization raises a relatively small amount of money from a large group of people. Crowdfunding is a method of raising capital through the collective effort of friends, family, customers, and indiv...

How To Write A Business Plan: A Comprehensive Guide

A comprehensive, step-by-step guide - complete with real examples - on writing business plans with just the right amount of panache to catch an investor's attention and serve as a guiding star for your business.

Introduction to Business Plans

So you've got a killer startup idea. Now you need to write a business plan that is equally killer.

You fire up your computer, open a Google doc, and stare at the blank page for several minutes before it suddenly dawns on you that, Hm…maybe I have no idea how to write a business plan from scratch after all.

Don't let it get you down. After all, why would you know anything about business planning? For that very reason we have 4 amazing business plan samples ...

Founders have to learn so many new skills when they're launching a startup, and writing a business plan is a big one. When you're writing your business plan for the first time, things can get… intimidating.

What do you include? What kind of wording should you use? What do you make sure not to include? Is a mid size business plan different than an enterprise plan or a scalable startup? Do I need to include financials like cash flow statements? What do investors want to see?

It's enough to make even a stalwart startup founder and management team throw in the towel before they've even begun.

Lucky for you — we've created a complete guide to writing your business plan. Check it out if you haven't already. (And if a link from there brought you here...