Yesterday I was explaining how the man who loves walking will walk further than the man who loves the destination as well as how My Drunk Aunt says if she wins the lottery, no one around her will be broke and she truly means that.

Speaking of her moving to a wealthy neighborhood…

Here are my best money jokes and maybe put a smile on your noodle:

“I live in constant fear that my son will become a famous artist and I will have thrown out a billion dollars of artwork.” ~ My Drunk Aunt

“When I got started in landscaping, I was penniless… today I owe two hundred and thirty six thousand dollars”

“If you think nobody cares if you’re alive… try missing a couple car payments.”

“The best way to teach your kids about taxes… is to eat 35% of their ice cream.”

“Money isn’t everything, but it certainly keeps you in touch with your children.”

“Never lend money to a friend, it’s dangerous, it damages their memory.”

“The study of Economics reveals that the best time to buy was last year.”

And finally…

A convo between Wifey and I.

Me: Would you marry a rich fool?

Wifey: How rich?

Me:

In other news from my BCS podcast…

Learn to be OK with discomfort and uncertainty.

It’ll help you stop most of your imagined suffering.

Anyhoo…

Your one PROFIT ACCELERATION THING today is:

‘Going Public’

One of the business coaches that works with us has a client interested in going public.

My background is in licensing / franchising and I don’t pretend to be the ‘going public’ expert.

That said, he asked me for some guidance and here are some of the things I explained to him that might also help you.

Dilution: This is a reduction in the percentage of ownership that occurs as the company issues and sells more stock (equity in the business) to raise new rounds of funding.

When the number of outstanding shares increases… each of the shares become less valuable.

*If you’re coaching founders you should make sure they have an ‘anti dilution’ clause to protect themselves so they don’t end up like Eduardo Saverin who sued his best friend Mark Zuckerberg for allowing Peter Theil to dilute Saverin’s shares but not Zuck’s LOL.

If you’ve seen the movie, The Social Network… this situation was central to the entire movie.

Protective Provisions: These are veto rights that allow investors who hold preferred stock to block actions they don’t approve of, like selling stock, taking on debt or approving mergers.

Pre and Post Money Valuation: Pre money and post money differ in the timing of valuation.

Pre-money is the valuation the business receives excluding a new round of investment being realized.

Post money is the pre money valuation PLUS the latest capital injection / money raised. If a company has a Pre Money $10 million dollar valuation and then raises $2 million…

The Post money valuation would be $12 million.

The startup founder would negotiate with the investors on the Pre Money valuation and these negotiations would factor in the long-term potential of the business and whether convertible notes will be calculated in the Pre or Post money valuation.

Convertible Notes: A powerful and common tool used for start ups with limitless potential but unclear path ahead.

Think of these as short term loans (aka debt) that have the ability to convert into stock (equity) at a later stage if a further equity round is raised.

The convertible note will normally get the stock (equity) at a discount to what others would be paying in the current raise.

Drag Along Rights (DAR): They allow a majority shareholder to mandate the others to accept an offer of purchase.

Blocking Rights: Means the right or ability (direct or indirect) of an owner to veto, delay, impair, interfere with an action proposed by the company and are usually only granted via preferred stock financing.

Most Favored Nation (MFN): An MFN clause ensures previous investors receive the benefits of more ‘investor friendly’ terms that are negotiated.

MFN clauses should be reviewed very carefully to avoid experienced investors cherry-picking better terms and create an unfair advantage.

Pro Rata Rights: These provisions automatically allow an investor to participate in future raises so they can keep the same percentage ownership in the company they invested in.

Experienced investors will sometimes also ask for a “super pro rata right” allowing them to buy more than their ‘pro rata’ shares of future raises in order to increase the percentage of the company they own.

Accelerator: These help start up founders scale up and the norm is having the people running the Accelerator invest in the businesses they’re guiding.

*We essentially have a ‘Business Coaching Accelerator’ where we help our successful business coaches scale up and successfully build teams of 10 to 100 business coaches under them.

We provide vendor financing to allow them to grow and manage their cash flow.

**If you know of a LEGIT business coach that’s interested in building a TEAM of coaches (lightweights need not apply) send them our way.

There is plenty more to know about going public but the worst result is where your client does ‘a bad deal’…

Lots of those get done as you can imagine.

This will help you THINK at a higher level and also help your high-end coaching clients not get taken advantage of.

Good news: Even the most complex business models are reasonably

straightforward when all is said and done.

You heard it here first.

Now, pick up the phone and go help someone.

Obsessed with your business coaching success,

Karl Bryan

Founder, Focused.com

PS. Your new life is going to cost you your old one.

PPS. If this helps and you want it to really sink in… GO TEACH IT to someone, cause that’s the best way for you to learn it. A friend, your spouse, a prospect, a client etc…

*Don’t plagiarize my work like a lame arse.

PPPS. Marriages break up from lack of money… over lack of love X 100. Business failures lead to destruction, addiction, depression, anxiety, suicides, and unfortunately, far more.

As good business coaches, we save marriages, save families, save kids from self-destruction… we save lives!

A true life of purpose.

PPPPS. If you’re looking for a proven system to follow for your coaching…. I created Profit Acceleration Software™ and high-end step-by-step training to support it…

We did a training that will teach you A strategy that can DOUBLE your clients’  bottom-line profits using exponential growth without spending more on marketing.

Imagine finding your high-ticket coaching fees BEFORE you start coaching your new clients?!  And a proven coaching system created for you to follow with your new coaching client.

Access the free training here

PPPPPS. Forward this to someone that needs to subscribe to my daily emails and get a limited-time, complimentary subscription to my business coaching magazine go here:

https://thesixfigurecoach.com/subscribe/

PPPPPPS. They tell me my Podcast is Ric Flair style, Money Makin, Client Getten, Joint Venture Landing, Event Fillin, High-End Coaching Client Findin Gold For Business Coaches.

https://karlbryan.com/business-coaching-secrets-podcast