The Nomad Financial Blog

What Investors Expect: 409A + Stock Treatment

What Investors Expect: 409A + Stock Treatment

This is the final installment of our What Investors Expect series; I hope that the content we’ve provided has helped you to better interact with your new investors, and has set you on the path to success. Firstly, what is a 409A valuation? A 409A valuation is an official report valuing the common stock of your company Why do I need a 409 valuation? You […]

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Hiring: When to Invest in Hiring

Hiring: When to Invest in Hiring

Employee Workload It can be difficult as a business owner to know when to invest in hiring additional staff; hiring affects staffing levels and capabilities, but it also affects profits. You should only considering hiring to fill a role if the following are true of your business. Staff are Overworked: If your team is stressed, overwhelmed and constantly struggling to meet deadlines then it could be […]

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What Investors Expect: Quarterly Board Meetings

What Investors Expect: Quarterly Board Meetings

Before the Quarterly Board Meeting: What most entrepreneurs don’t know is that some of the most important steps you can take to ensure a successful board meeting come days before the meeting begins. For example, you should be sending out a board book 3+ days in advance. This will give your investors enough time to review the material you will be presenting at the board […]

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What Investors Expect: Be Audit Ready

What Investors Expect: Be Audit Ready

Audit-Ready financials are important for many reasons beyond ”being Audit-Ready”. Institutional investors require having your financials audit ready for a few reasons: Ultimately you are spending their money, and this means having checks and balances in place to ensure above-board spending and peace of mind. Many times investments are provided in tranches, instead of all at once.  Missed or inaccurate financials will put future tranches […]

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What Investors Expect: Investor Updates

What Investors Expect: Investor Updates

During your key early days with institutional investors, the best way to keep them engaged in your company is with monthly investor updates. Maintaining consistent updates is crucial for a strong relationship with your investors, and the good ones expect it. By treating them as though they are partners in the business rather than just capital contributors, you build trust as well as set expectations […]

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Part III: Limited Liability Corporation

Part III: Limited Liability Corporation

“Simplest form of incorporation”   After soft-circling it for 3 posts, we are finally here! A limited liability corporation (or LLC as it is commonly known) is the simplest formalized structure; it finally relieves the general partner/s of their responsibility to cover the liabilities (debts/taxes) of the corporate entity. More plainly, your personal assets are protected. As this post will show, a limited liability corporation […]

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Part II: Partnership

Part II: Partnership

“Partnership: General, Limited and Joint Venture”   Starting a law firm? An accounting practice? Truth is, many service companies with so-called “partners” are best suited incorporating as a partnership (duh). A partnership is simply a company in which two or more people share ownership. Ostensibly, each partner contributes to all aspects of the business (capital, property, labor). In return, partners share the profits and losses […]

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Part I: Sole Proprietorship

Part I: Sole Proprietorship

“You are the business” Are you a marketing consultant? Maybe you’re a freelance writer and you dabble in design as well. You’re probably best suited incorporating as a Sole Proprietorship. This is the simplest corporate structure; the company is started in your name, you have no employees and there is no distinction between the business and you – the owner. Simply put, you are entitled to […]

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Incorporation for Startups Series

Incorporation for Startups Series

Incorporation for Startups Series: Introduction Have a great idea for a startup, and have no idea how to get started? Cancel your next meeting and welcome to the Nomad Financial Incorporation for Startups Series! This is a series, which will be rolling out over the next 6 weeks, will profile the different incorporation options available to you as a business owner. Hopefully by the end of the series, one structure will fit, […]

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Applying Principles of Diwali to Business

Applying Principles of Diwali to Business

Applying Principles of Diwali to Business I want to wish a Happy Diwali to everyone celebrating today. For those of you that aren’t, Diwali is a “Festival of Lights” celebrated by Hindus, Jains, Sikhs and Buddhists around the world. Customs include magnificent firework displays, decorating one’s home with candles and colorful lights, as well as eating delicious home-cooked food. These traditions are meant to signify the triumph of good over […]

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