1. Jeff Bezos is a separate legal entity from Amazon. (Solomon v Solomon)
As a corporation, Amazon can borrow in her name. Jeff can actually buy those bonds issued by Amazon.
Lesson: don't comingle cash. Separate your personal cash from business cash.
As a corporation, Amazon can borrow in her name. Jeff can actually buy those bonds issued by Amazon.
Lesson: don't comingle cash. Separate your personal cash from business cash.
2. Jeff Bezos is worth $152b
Take Jeff Bezos (not Amazon's) Assets and subtract from his liabilities, you get $152b
Bwzos owns Ed Ruscha’s Hurting the Word Radio #2 (pictured). He paid $52.5 million for it...its not cash.
Lesson 2: Assets do not always mean liquid cash
Take Jeff Bezos (not Amazon's) Assets and subtract from his liabilities, you get $152b
Bwzos owns Ed Ruscha’s Hurting the Word Radio #2 (pictured). He paid $52.5 million for it...its not cash.
Lesson 2: Assets do not always mean liquid cash
3. Amazon borrowed $10b in bonds.
Why? Because interest rates in America have "crashed" making debt very cheap
Amazon is paying 0.4% to borrow $1b for 5 years, the lowest corporate rate ever in America.
Lesson: Finance sources should be cost driven. Seek out low cost finance.
Why? Because interest rates in America have "crashed" making debt very cheap
Amazon is paying 0.4% to borrow $1b for 5 years, the lowest corporate rate ever in America.
Lesson: Finance sources should be cost driven. Seek out low cost finance.
Entrepreneurs.
1. Incorporate your hustle. Dont wait until you are "huge". Trade under "Emeka Limited" not Emeka.
2. Open bank accounts in Emaka Limited, pay ALL revenues to Emeka Limited account, pay all expenses from account, including your salary.
Don't take cash from shop
1. Incorporate your hustle. Dont wait until you are "huge". Trade under "Emeka Limited" not Emeka.
2. Open bank accounts in Emaka Limited, pay ALL revenues to Emeka Limited account, pay all expenses from account, including your salary.
Don't take cash from shop
When you seek to borrow, do so in Emeka Limited's name
Why? Because your liability is limited to Emeka Limited.
Establish a good credit history, take N10,000 credit line (even if you don't need it) repay without fail.
Hire accountant, pay taxes, pay VAT, keep records.
Why? Because your liability is limited to Emeka Limited.
Establish a good credit history, take N10,000 credit line (even if you don't need it) repay without fail.
Hire accountant, pay taxes, pay VAT, keep records.
Understand the world of Finance, even if Emeka Limited sells phones.
If Stock markets are booming, sell shares. (Class B if you want)
If rates fall, issue Certificates of Deposit
Always add Call options on debt you issue, meaning you can cancel debt and repay when you choose
If Stock markets are booming, sell shares. (Class B if you want)
If rates fall, issue Certificates of Deposit
Always add Call options on debt you issue, meaning you can cancel debt and repay when you choose
In closing, get advise.
If you borrow money and repay investors, you can deduct the interest you pay to investors from your taxes.
If you build a "factory" in your village away from public roads and water, you can get a tax credit.
Be open, learn, get better.
If you borrow money and repay investors, you can deduct the interest you pay to investors from your taxes.
If you build a "factory" in your village away from public roads and water, you can get a tax credit.
Be open, learn, get better.
