Company Value

Do you know how wealthy billionaire creates all their paper wealth? It's a rather simple feat really. It is just semantics.

Say you want to sell a new kind of car to young customers around the world. Before creating your company you have been diligent enough to get a lot of reserved bookings on paper (commtiments on paper).

Whenever you have formed a company, setup bank account etc you wonder how you are going to create the car you have promised to create. You don't have the cash and you have promised your customer that they will only pay when you deliver. It would be a real gamble to ask them to deposit money and then use these deposits to create the cars. If you don't deliver you can be in big trouble. You will need to pay the money back you know.

So what the smart serial entrepreneurs in this world do is that they will form the company, deposit some kind of share capital and then they will approach a business broker and ask the business broker to sell a couple of percent of their company on a contingency basis. They will then use these funds to finance a smart and reliable project manager and the project costs. And then he will let the project manager do the magic.

Billionaires are able to start with nothing but an idea and a couple of interested customers commited to buy on paper.

As the title says, this article was formed to explain "Company Value". Let me quickly explain how the "paper wealth creation" works:

Say you created this company with the vision of selling a new, cool car to commited, young customers. Say you sold 10% of your business for $10 Million. If you sell 10% of your business for $10 Million then the entire company would instantly have a company value of $100 Million. Your paper wealth would be 90% of that $100 Million value. See paper wealth is not rocket science. With a sharp business broker you can become very rich both on paper and in pure cash sitting in your bank account. Ready to be spent on fun things. The main problem may not be too little money, but too much money. I mean it is hard stuff spending $10 Million. Even if you tried really hard and wasn't aloud to give it to charity.

This reminds me of a movie with a black actor who one day got the news that he had a rich relative that had died and he was the beneficiary. But the problem was that before he could recieve his multi million dollar heritage he was forced to spend a couple of millions in only 30 days without giving it to charity. He had to spend it all. Every red cent. If he didn't succeed he wasn't aloud to inherit the bigger cash heritage. It may sound like a simple feat, but believe me having to much money can be a hugh problem. Especially if your making more money than you are spending.

So my friends, find a demand and meet (commitments on paper) it and start a company and sell it dearly with the help of a professional on a contingency basis. If you don't, then don't be angry at others. It's your fault that you are poor and broke.