For Growth, What Matters Most? Part II
In the second of a three-part series, columnist Christine Comaford offers her advice on managing the money part of the successful business equation
This article is for subscribers only.
In my last column (BusinessWeek.com, 6/25/08), the first of a three-part series on my top priorities for growth, I stressed the importance of people, business model, and money—they're the three most important parts of any successful company. I can't stress enough that you must have all three pieces nailed down if you want to have a viable business, which is why I'm taking the time to drill down on each in detail.
In my last column, I told the story of two entrepreneurs who were preparing to raise $1 million. They had a business plan and a dream—but that was all. They wanted to sell 20% of the company, thus making their post-investment company valuation $5 million. You'll recall my question—how is a business plan worth $4 million?