When the owner invested cash in a business what happens?
When the owner invests cash in a business: assets and revenue increase. assets increase and owner's equity decreases. liabilities decrease and owner's equity increases. assets and owner's equity increase. When equipment is purchased on credit assets and liabilities increase. assets increase and liabilities decrease. assets and owner's equity increase. assets and expenses increase. When equipment is purchased for cash: assets decrease and expenses increase. one asset increases and another asset decreases. assets and owner's equity increase. assets increase and liabilities decrease. When the owner withdraws cash for personal use: assets decrease and expenses increase. assets decrease and owner's equity increases. assets decrease and owner's equity decreases. owner's equity decreases and revenue decreases. . When the owner writes a company check to pay the firm's electric bill: assets and owner's equity increase. assets decrease and expenses increase. assets and liabilities decrease. expenses increase and owner's equity increases.
How do I raise investment for a family business?
I will try to answer it in very brief -* First and foremost option is to re-invest and grow organically. This is very ideal and many a times practical for many family business* If you need loan, second option is to check for schemes run by government and institutions in the sector you are into. You should google it or even get in touch with appropriate association depending on your sector* Third option, ideally is bank debt and since you do have a history with sizeable turnover - you should definitely prepare projections / balance sheets as per the guidelines of various banks and validate + refine your investment needs* If there is still a sizeable amount of money to be raised - besides above: try family and friends. Unsecured loans from someone you know also falls here and you should not try to do equity dilution unless the investor in this case is going to be part of your day-to-day operation or active adviser / mentor in long run.* Finally comes an options, to liquidate some % of shares. Ideally this is not a usual method in family owned business - but in case you want to plan for this look for strategic investor who is much bigger than you (owns very big business empire or run PE funds) who can also be a possible acquirer of your company in long run.
Why does my wife not support me starting my own business as a financial coach with Primerica?
Primerica is a difficult business to be involved in. The income is not guaranteed and you really have to be good at self-motivation in order to make it work. Since she's your wife, she either doesn't believe that you have the proper mental capacity in order to make this business work for you (it's extremely difficult) or she's concerned that you will not be making a large amount of income for several months. Talk to her and find out why she's not supportive. This business is hard enough when you have support of loved ones. It's even harder without it.
Is having your own business the only way to become a billionaire?
Not… but it is certainly the most reliable way for the vast majority or people.This reminds me of a question regarding becoming financially free and successful. The OP suggested that saving is not the best way to get there. I begged to differ. In the book “Ten Roads to Riches” (you can check out my summary here) you’ll actually find out that the formula is called “The most traveled road” for one reason.You’ve got various examples of billionaires who haven’t started their business, such as JK Rowling and Michael Jordan. However, for the vast majority of people, who don’t have genes good enough to become an athlete, a writer, a top model, or any other profession which will lead you to the riches, the most reliable formula to success is earning + saving + investing. Equally, the best formula to become a billionaire is to set up your own business, but just not any business.Think of businesses created and owned by billionaires. They all provide products or services which are liked and used by most people. Think of Facebook, Amazon, Coca Cola or even Walmart. I actually say that billionaires work for the masses, not the other way around. To build such a company takes a monumental piece of work. Billionaires work non-stop to make their companies deliver great services and products (otherwise people won’t use them).For instance, why do you go to Walmart (or a supermarket for that matter?) You actually have the option to buy from local farmers. If you don’t have many near you, you can grow your own vegetables. You can create your own shampoo.Why do you use Facebook? You can hire an Engineer to program a mini Facebook for you. Yes, its going to take a lotta time and money. And you won’t have many people hanging out on your platform. So you see… the value that Facebook brings to the table is immense. Therefore, you use it.If you liked my post, follow me on Quora and on Facebook, or check out my blog