Jeez you guys are morons sometimes. It isn't self defeating in any shape or form. The only reason why you'd dilute is because earnings per share increase. If it isn't then what the heck are you "investing" in? Sell bonds if you don't want to dilute any potential added upside. There lots of ways without relying on the banking system some easier than others, some based on economies of scale but opportunity doesn't rest solely at the debtors door. And yes, I'll happily carry on as I was because I've seen the collapses of leveraged idiots and the success of conservative non leveraged businesses.
your focusing way to much on the "being home after school bit". its just an example, it wasn't meant to be the be all and end all. its the idea of having a parent home to bring structure to the family unit when the children are of very young age, e.g. 0 - 10 years of age. I think this has a massive benefit to the upbringing of the child vs the child being raise by some random people. Its also very enriching for the parent to spend time and watch them develop. Anywho this is just me, maybe for other its not a big deal and are happy to let someone else raise their children.
It don't make it good because a few people find a way to leverage the corruption (i.e. the modern debt based economy) rather than working hard/smart and producing something other people want. My first boss was self made and never had any debt. He lives (now retired) in a house over looking Sydney Harbor, and has more wealth than most could imagine. He built three successful businesses from nothing but a skill, the right people, and modest savings. All without debt, or external funding.
Were morons ? at least we have a definative solution . Yours is built on a wish procuring investors & selling shares which you might not be able to do then giving a % of the profits away to others ......lol & were morons :lol:
The catch is this takes a lot of personal emotional maturity to do properly (hence why others are more than happy to outsource - and why some parents should totally outsource). My parents are emotional retards and consequently during my childhood they spent all their time running their various businesses (with zero debt, I'd add) and my care was outsourced as much as possible. Primarily this resulted in me being an emotional retard as well, but thanks to my wife who had the opposite experience I am learning (albeit a bit too slow for her liking). After seeing how it should work, I love it and fully agree with you.
Are you seriously saying that you've never done this? Wow? My parents did it, my brother has done it (he's even been in the BRW lists as a result of partnering with others to grow his businesses faster - starting from complete zero except his personal savings I'd add), and I've been on the purchasing side from others doing it (equity and bonds). It's just so normal to build great businesses with others without having to rely on ponzi banking. Edit: Actually maybe it's simply that your "investments" fundamentally don't get a great return on equity without resorting to ponzi debt so you haven't experienced true cash flow investing. If this isn't true then it's should be a no brainer that you're not sharing "your" profits, your collectively profiting more than you could individually.
We all do it differently & MOST businesses wouldnt have a hope in hell of procuring private funding .So again you guys are talking of a very small part of actual small developing businesses.
Are you kidding me. There's so many ways of capital raising, and a lot of cash floating around. If you've got a good product, or service, capital raising isn't that hard, and is quite common. First stage is FFF (tripple F, Friends, Family, Fools). Then you just need the right connections (which isn't that hard with networking ... etc). I know people who've raised 1M easily, using the FFF money (usually 50K) to raise the remaining capital. But you won't get this type of capital raising to open a local butcher. It has to be an idea, or product that has good scalability, and great potential.
As willrocks said "It has to be an idea, or product that has good scalability, and great potential." If this is the case for the local butcher then the cash raising is simple.
I'm sorry, but willrocks said There are so many libertarian free thinkers here, but a local butcher won't attract capital? So the local butcher has skills and a product, how does he expand if his "idea" doesn't have scalability (which I've never heard of before)?
Just had a thought, I'll mention your ideas to the local butcher in town that has just closed one of his shops, and the other 2 that are considering shutting up for good. I'll say to them, hey Pete, hey Wayne, how's business? Have you considered selling 40% of your profits to shareholders who don't have to wake up at 4:00am, and work until 5:30pm, six days a week?
Perhaps I should have said "But you won't get this type of capital raising to open a local butcher, unless his business model is unique, and attractive to investors". My point is, investors participating in capital raising aren't really interested in typical mom and dad type businesses that would be considered an income source.
Which are the majority of small businesses around. So it gets back to my point, how does a small business raise capital? It has to put it's reputation and skills on the line and BORROW. What's wrong with that? Backing their own ability. The great Aussie tradition. And a time honoured method of growing.
Why? Clearly the business isn't viable if he's shutting down. Do you think a bank will lend to him in such circumstances? Also, if you didn't realise, when you are selling equity you don't have to sell at the same price per share that you paid for AND if you're working it and not the silent equity partner you get paid a thing called "wages" which are deducted before dividends are paid/reinvested I'm honestly confused shiney. Since the kids left with their green plants from the attic you haven't been into the ratsak instead have you? It's white, but not right :lol: (Meant to be light hearted ribbing.)
Bord, not every business wants to play the "selling equity to investors" game. And you know perfectly well why two local butchers are wondering whether it is worth staying open and working 60+ hours per week. And, I'd rather borrow from a bank than have to answer to shareholders. Edit to add, I'm not a butcher :lol: Thank god.
