One of the first things you want to do in order to start a business is get incorporated. At that point, you may consider taking on investors. You don’t need your investors to give you a lot of money, and they may not even need to give you cash at all. Instead, you can give them a percentage of the company in exchange for something they offer of value. That value may be cash, but it can also be time or other kinds of resources.
Ackman then continues to help explain how to value your business based on money that you’ve raised from your initial investors. The company’s value can be increased by actually borrowing money. By borrowing a reasonable amount of money, you’re increasing the firm’s economic power and ability to engage in revenue-generating activities.
He then goes into explaining the balance sheet and many other basics about the structure of a corporation. The video is a great start for your quest toward becoming the financial guru that you were always meant to be. Take a look: