8/11/07
OPM is a book about finding money to fund a venture. Instead of finding
a great business deal and saying "I can't afford it" you learn here that
you just have to find the right stream of capital. Funding sources are
many, but the book begins by reviewing why one would need funding and
typical ways businesses go about getting it. For starters, simple
stories that show how a business' present and future value is calculated
are told. That is followed by brief explanations of business plans and
financial statements that would be prepared to get funding. The major
sources of funding for both small to medium business are discussed and
include: Friends and Family (Seed Money), Angel Investors ($500k-$1M),
Venture capital ($1M-$50M), Banks, Joint Ventures, Strategic
Partnerships, and Licensing.
Throughout the book securities laws are reinforced and the importance of
having a good lawyer ensures that all are in compliance with them. The
book provides a great 300 page overview to a subject that could fill
many volumes. As part of the Rich Dad series it is simply a taste of
what is out there and as one becomes more interested in a specific
source of funding more reading and research would be required. This
makes sense as it would be unlikely that someone would be seeking Angle
and VC funding at the same time.
