Re: [WISPA] Quesiton on Funding / Financing / Capital Availability

[Travis Johnson]

Huh? We incorporated in 1997 and I think total cost was less than $500. How do you ever expect to get away from having to do personal guarantees if you don't operate like a "real" business? Travis Microserv Marlon K. Schafer wrote: One more thing. I don't agree with your definitions per se'. We all have businesses. A proprietorship is a TYPE of business. We are a proprietorship because I'm not incorporated (incorporating is over rated and expensive to do right). I'm still a business though.... http://en.wikipedia.org/wiki/Business http://en.wikipedia.org/wiki/Sole_proprietorship http://en.wikipedia.org/wiki/Asset marlon ----- Original Message ----- From: "Charles Wu" <c...@cticonnect.com> To: "WISPA General List" <wireless@wispa.org> Sent: Sunday, May 24, 2009 10:03 PM Subject: Re: [WISPA] Quesiton on Funding / Financing / Capital Availability Hi Marlon, I think it's appropriate to make a few definitions and distinctions on things so everyone is on the same page Specifically, for purposes of making my point, I define Proprietorship: A commercial activity engaged in as a means of livelihood or profit Business: A unique system of processes and procedures that documents and codifies a specific method of proprietorship Asset: cash, inventory, equipment, infrastructure, customer contracts, brand, marketing, etc Grin. Sure it is. That's what a LOT of small business people do. It's also kind of common for doctors, dentists, plumbers etc.... Sometimes it sucks, Now, everything you stated above is just a method of proprietorship, and in most cases, from a sale perspective, a proprietorships isn't worth anything more than the depreciated value of its assets Say you were buying out the local plumber's office -- what would he have of value? His truck? Some old tools? A customer list / brand perhaps (but the reality of things is that customers do business with him because of him, and if you bought him out and he moved out of town, those customers would probably go back to being on the open market) Now, in comparing the WISP 'proprietorship' vs. the plumber, it's worth noting that the WISP is somewhat unique in that it results in the creation of an independent asset that holds onto a lot of value (e.g., the recurring revenue and everything that goes to support it); in many ways, this is akin to real-estate Not everyone out there even wants to get that big (if I had a nickle for every business owner that's told me the most fun they had and the most money they made was when it was just them, no employees......) But then again, that's one of the really cool things about this buisness, it's big enough and flexible enough to allow many different business models and operator dreams to bear fuit! True...and you have the added benefit of building an asset that has value (be happy we're not plumbers =) -Charles -------------------------------------------------------------------------------- WISPA Wants You! Join today! http://signup.wispa.org/ -------------------------------------------------------------------------------- WISPA Wireless List: wireless@wispa.org Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/ -------------------------------------------------------------------------------- WISPA Wants You! Join today! http://signup.wispa.org/ -------------------------------------------------------------------------------- WISPA Wireless List: wireless@wispa.org Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/

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