March, 2011Archive for

Virgina Benefit Corporations

Virgina Benefit Corporations Virginia Governor Bob McDonnell has signed legislation that will make Virginia the fourth state to allow stock corporations to become Benefit Corporations (B Corps). The bill had unanimously passed both the Virginia State Senate and the Viriginia State legislature. Governor McDonnell signed HB 2358 on March 26, 2011 and the legislation will take effect on July 1, 2011. Previous states that have adopted B Corp legislation include Maryland, Vermont (where the le...

Bare Naked Business

Bare Naked Business Peggy Farabaugh started Vermont Woods Studios, an online retailer of fine Vermont made furniture, a few years ago. You might think that an online business selling high value items was bound to fail. But what Peggy and her handful of colleagues have done is to prove that assumption wrong. Her business is thriving and individual online sales average over $2,000. She and her team have developed a model that is well worth you taking a look at. The lessons apply to many small o...

Alphabet of entrepreneurial types

Alphabet of Entrepreneurial Types I have been a student of entrepreneurs for many years and watched many types of people creating ventures. I have created an Alphabet of Entrepreneurial Types that typified the many types of entrepreneurs I have witnessed. I have observed. There is no 'one best way' to be an entrepreneur and each type has an Achilles Heel that can trip them up. A few examples: Edgewalker, who lives between two worlds and has a high tolerance for ambiguity, but may ...

Revenue-Based Funding

Revenue-Based Funding I am delighted to see that revenue-based funding is becoming a growing competitor for equity and bank–not least because I was a beneficiary of such borrowing back in 1982. The advantage to entrepreneurs is that the loan is based on your forecast revenues and repayments are in the form of royalties on them. So some people call them royalty-based loans. Thanks to Thomas Thurston of Growth Science International for the illustration to the left. The benefit for the ...

Jobless Entrepreneurship

Jobless Entrepreneurship–Good or Bad? During the Great Recession, more Americans have become entrepreneurs than at any time in the past 15 years. However, while the economy and its high unemployment rates may have pressed more individuals into business ownership, most of them are going it alone, rather than starting companies that employ others. So says the Kauffman Index of Entrepreneurial Activity, published March 7, 2011. According to the study, 0.34 percent of American adults created a...