how much should i price my shares at so I got a great question front of my
I got a great question front of my
I got a great question front of my YouTube viewers love you guys hosting to
YouTube viewers love you guys hosting to
YouTube viewers love you guys hosting to write in to say big video Evan I’m
write in to say big video Evan I’m
write in to say big video Evan I’m learning so much from you thank you for
learning so much from you thank you for
learning so much from you thank you for saying also please explain how shares
saying also please explain how shares
saying also please explain how shares are created in terms of initial value
are created in terms of initial value
are created in terms of initial value and the part left for future investors
and the part left for future investors
and the part left for future investors how much is the initial price be is a
how much is the initial price be is a
how much is the initial price be is a good to have lower high and do I need an
good to have lower high and do I need an
good to have lower high and do I need an attorney from the beginning so all great
attorney from the beginning so all great
attorney from the beginning so all great questions especially if you’re looking
questions especially if you’re looking
questions especially if you’re looking at bringing on investors in your
at bringing on investors in your
at bringing on investors in your business when you’re first starting your
business when you’re first starting your
business when you’re first starting your company if it’s a sole proprietorship
company if it’s a sole proprietorship
company if it’s a sole proprietorship then there are no shares if you are as
then there are no shares if you are as
then there are no shares if you are as forming a company then you have to
forming a company then you have to
forming a company then you have to create shares in your business how many
create shares in your business how many
create shares in your business how many shares and what the initial price is
shares and what the initial price is
shares and what the initial price is doesn’t really matter
doesn’t really matter
doesn’t really matter it doesn’t matter it’s more about the
it doesn’t matter it’s more about the
it doesn’t matter it’s more about the percentage so if you’re the only owner
percentage so if you’re the only owner
percentage so if you’re the only owner in the corporation you own a hundred
in the corporation you own a hundred
in the corporation you own a hundred percent of the shares whether it’s a
percent of the shares whether it’s a
percent of the shares whether it’s a hundred shares a thousand shares 10,000
hundred shares a thousand shares 10,000
hundred shares a thousand shares 10,000 shares doesn’t make a difference you own
shares doesn’t make a difference you own
shares doesn’t make a difference you own a hundred percent then what makes a
a hundred percent then what makes a
a hundred percent then what makes a difference is the percentage okay
difference is the percentage okay
difference is the percentage okay the value also doesn’t matter at the
the value also doesn’t matter at the
the value also doesn’t matter at the start the difference in the value that
start the difference in the value that
start the difference in the value that really makes an important impact is what
really makes an important impact is what
really makes an important impact is what you sell it at right so if you’re gonna
you sell it at right so if you’re gonna
you sell it at right so if you’re gonna bring an investor on board at some point
bring an investor on board at some point
bring an investor on board at some point with your business it doesn’t matter
with your business it doesn’t matter
with your business it doesn’t matter what you initially price the share I’d
what you initially price the share I’d
what you initially price the share I’d this is not a publicly traded company
this is not a publicly traded company
this is not a publicly traded company this is your own business nobody even
this is your own business nobody even
this is your own business nobody even knows what the initial price was sold
knows what the initial price was sold
knows what the initial price was sold for but it doesn’t matter it’s more
for but it doesn’t matter it’s more
for but it doesn’t matter it’s more whatever deal you can come to between
whatever deal you can come to between
whatever deal you can come to between yourself and the investor so if you sold
yourself and the investor so if you sold
yourself and the investor so if you sold the share to yourself you know if it was
the share to yourself you know if it was
the share to yourself you know if it was a dollar valuation at the start that’s
a dollar valuation at the start that’s
a dollar valuation at the start that’s fine it doesn’t mean you can’t tell that
fine it doesn’t mean you can’t tell that
fine it doesn’t mean you can’t tell that same share for a hundred thousand
same share for a hundred thousand
same share for a hundred thousand dollars later the pricing doesn’t matter
dollars later the pricing doesn’t matter
dollars later the pricing doesn’t matter okay should you involve a lawyer from
okay should you involve a lawyer from
okay should you involve a lawyer from the beginning yeah
the beginning yeah
the beginning yeah just like it’s good to have an account
just like it’s good to have an account
just like it’s good to have an account from the beginning I know it’s expensive
from the beginning I know it’s expensive
from the beginning I know it’s expensive and there are ways around it one example
and there are ways around it one example
and there are ways around it one example could be to get a template online like
could be to get a template online like
could be to get a template online like if money is really important to you
if money is really important to you
if money is really important to you you’re really tight you can buy an
you’re really tight you can buy an
you’re really tight you can buy an online template for a shareholders
online template for a shareholders
online template for a shareholders agreement and the share structure then
agreement and the share structure then
agreement and the share structure then just have a lawyer local lawyer review
just have a lawyer local lawyer review
just have a lawyer local lawyer review it so they’re not drafting everything
it so they’re not drafting everything
it so they’re not drafting everything but they’re just reviewing a current one
but they’re just reviewing a current one
but they’re just reviewing a current one and updating it for you it’s important
and updating it for you it’s important
and updating it for you it’s important to have a really good shareholders
to have a really good shareholders
to have a really good shareholders agreement okay you want a lawyer to help
agreement okay you want a lawyer to help
agreement okay you want a lawyer to help you out with at the beginning
you out with at the beginning
you out with at the beginning because from investor point of view I’ve
because from investor point of view I’ve
because from investor point of view I’ve looked at businesses and if they don’t
looked at businesses and if they don’t
looked at businesses and if they don’t have a solid share whose agreement I’m
have a solid share whose agreement I’m
have a solid share whose agreement I’m out I’m not investing in that business
out I’m not investing in that business
out I’m not investing in that business it’s it’s one you know reducing headache
it’s it’s one you know reducing headache
it’s it’s one you know reducing headache a my end but also you know if the person
a my end but also you know if the person
a my end but also you know if the person the entrepreneur has thought that far
the entrepreneur has thought that far
the entrepreneur has thought that far ahead or not right like it’s just a sign
ahead or not right like it’s just a sign
ahead or not right like it’s just a sign of how detail aren t do you are and how
of how detail aren t do you are and how
of how detail aren t do you are and how much you care about your business if you
much you care about your business if you
much you care about your business if you don’t even have a solid shareholders
don’t even have a solid shareholders
don’t even have a solid shareholders agreement then there’s probably a lot of
agreement then there’s probably a lot of
agreement then there’s probably a lot of other things wrong with your business as
other things wrong with your business as
other things wrong with your business as well as a warning sign so you want to
well as a warning sign so you want to
well as a warning sign so you want to make sure you have your shows agreement
make sure you have your shows agreement
make sure you have your shows agreement set up there’s some of the things that
set up there’s some of the things that
set up there’s some of the things that they look for it’s a shotgun closet they
they look for it’s a shotgun closet they
they look for it’s a shotgun closet they can mention on the video right I want a
can mention on the video right I want a
can mention on the video right I want a shotgun clause so that if I have an exit
shotgun clause so that if I have an exit
shotgun clause so that if I have an exit right I have an exit from the business I
right I have an exit from the business I
right I have an exit from the business I have a piggyback clause so that if if
have a piggyback clause so that if if
have a piggyback clause so that if if you sell the company they have to buy my
you sell the company they have to buy my
you sell the company they have to buy my shares as well whoever is buying it over
shares as well whoever is buying it over
shares as well whoever is buying it over at least I have that option or write a
at least I have that option or write a
at least I have that option or write a first refusal so that if you sell your
first refusal so that if you sell your
first refusal so that if you sell your shares to somebody I have the right to
shares to somebody I have the right to
shares to somebody I have the right to buy it first at whatever price before
buy it first at whatever price before
buy it first at whatever price before you sell it to somebody else so all
you sell it to somebody else so all
you sell it to somebody else so all these things are part of a good shows
these things are part of a good shows
these things are part of a good shows agreement that a lawyer can help you go
agreement that a lawyer can help you go
agreement that a lawyer can help you go through I would definitely from the
through I would definitely from the
through I would definitely from the start but again if you can’t afford it
start but again if you can’t afford it
start but again if you can’t afford it are you worried about the pricing of it
are you worried about the pricing of it
are you worried about the pricing of it then get an online agreement but still
then get an online agreement but still
then get an online agreement but still have your lawyer review it before you
have your lawyer review it before you
have your lawyer review it before you create your agreement cuz this is this
create your agreement cuz this is this
create your agreement cuz this is this is important and once you bring on
is important and once you bring on
is important and once you bring on investors it’s harder to change
investors it’s harder to change
investors it’s harder to change everything around in the future so you
everything around in the future so you
everything around in the future so you want to start this part solidly from the
want to start this part solidly from the
want to start this part solidly from the beginning and yeah it doesn’t matter
beginning and yeah it doesn’t matter
beginning and yeah it doesn’t matter what your initial serve share price is
what your initial serve share price is
what your initial serve share price is if you’re the only person in the
if you’re the only person in the
if you’re the only person in the business you can sell it later for
business you can sell it later for
business you can sell it later for whatever you want because it’s a private
whatever you want because it’s a private
whatever you want because it’s a private company believe hopefully answer your
company believe hopefully answer your
company believe hopefully answer your questions a little bit technical maybe
questions a little bit technical maybe
questions a little bit technical maybe you guys like this video though give it
you guys like this video though give it
you guys like this video though give it a thumbs up below makes you want to do
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more videos for you and let me know what you think leave a comment below if
you think leave a comment below if
you think leave a comment below if you’ve had experience with shows
you’ve had experience with shows
you’ve had experience with shows agreements or bringing on investors
agreements or bringing on investors
agreements or bringing on investors problems good or bad I want to hear
problems good or bad I want to hear
problems good or bad I want to hear about it leave it below in the comments
about it leave it below in the comments
about it leave it below in the comments you can ask me a question I’m a good
you can ask me a question I’m a good
you can ask me a question I’m a good video reply and you want to see more
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