What Not To Do With Investor Money
My company is Angel funded, which means I took money from investors. This money helped me get my idea off the ground and pays our operating costs (salaries, servers, office space, utilities) until we are able to become “cash flow positive”, meaning we can pay all of our operating costs with the revenue the company generates. I was watching the news the other day and a clip on ABC caught my interest. This clip was talking about the CEO’s of the three large US automobile companies coming to Congress to ask for a 25 billion dollar bailout. The news story took a turn though when it was found that each executive came in on their private jets. I’m pretty sure with issues such as scheduling, security and corporate policies those private jets were needed, but this story brings up a really good point when managing a company.
If you are running your company off investor capital, or tax payer dollars, as is the case for the car manufacturers, you need to look at your spending from an outside perspective. Investors are watching you and both business and personal buys in my opinion must be evaluated to not give investors the impression that their capital is going to misuse. You don’t want to end up like the CEO’s in the video clip, where most likely there were legitimate reasons to use private jets, but from an outsider’s perspective, it didn’t convey the right image.
* Sorry, no new Italian sports car for you this year.
Add New Comment
Viewing 6 Comments
Thanks. Your comment is awaiting approval by a moderator.
Do you already have an account? Log in and claim this comment.
Do you already have an account? Log in and claim this comment.
Do you already have an account? Log in and claim this comment.
Do you already have an account? Log in and claim this comment.
Do you already have an account? Log in and claim this comment.
Do you already have an account? Log in and claim this comment.
Do you already have an account? Log in and claim this comment.
Add New Comment
Trackbacks
(Trackback URL)