Being in a business means that you have to keep generating the money all time to manage finances and to operate the business smoothly. However, one thing that needs to be mentioned is that every business owner wants to expand his/her business for which a partner may be needed – be it for capital infusion or a specific skill-set. Joint ventures have become an increasingly popular choice for businesses as it allows them to leverage on the benefits brought in by the Joint Venture partner, thus enabling the business to grow exponentially.

A Joint Venture is a kind of business agreement wherein both the parties make a Joint Venture agreement (JV Agreement) so as to develop a new entity and new assets by contributing equity for a fix period of time. Both parties control the enterprise and share the revenues, expenses and assets when it comes to carrying out the project and the parties are known as ‘co-ventures’. Joint Ventures are appropriate for all kinds of businesses, both big and small or a start up or established business house. As the cost of initiating a project is quite high, both parties with the help of JV agreement can share the burden equally on shoulders.

A Joint Venture agreement can involve a lot of money so there is a necessity to have a proper plan on paper before starting out. Before selecting a partner for such venture, the screening of prospective partners comes into being. One has to short list the partner after thoroughly checking his credentials.

There are lots of online website, which offer space for businessmen to invite other businessmen to jointly collaborate on a project. These websites also offer a myriad of services to such interested parties to ensure that they are going in right direction and can keep faith in each other. Both the parties need to register on the website and then they can start working on mutual commitment. A JV is a good solution to handle the financial burden with ease. Thus, it becomes essential that both the parties sign a JV agreement so that managing everything becomes easy.

These types of ventures make it possible for businessmen to allow new technology and new methods of running the business. The business opens up for new opportunities and since there is more work, employment opportunities also increase and that means Joint Ventures prove beneficial for a country’s economy as a whole.

Joint Ventures can happen in nearly every type of industry be it food to clothing or housing development. The sectors covered under such ventures can be anything from private sector to public sector. Everyday newspaper pages cover these ventures happening throughout the country and such stories encourage other businessmen to indulge in such joint venture agreements as well.

If you are looking for more information on Joint Ventures or are on the lookout of a JV partner, Contact our client center.

I see it happen a lot lately in Jakarta. Startups with 4-5 founders who are pretty much equal shareholders will look for very early Angel funding, which (if they get it) brings another shareholder on board.

Now you’ve got a situation with 5-6 shareholders in a company that still has to land its first serious funding. This is in my opinion a situation far from desirable, for some obvious and some less obvious reasons.

In general, when a startup approaches an (angel) investor for a pitch and shares that the company has 4 or 5 shareholders with pretty much similar voting rights, my first question would be “Who wants to give up his or her shares?”. It’s just too early to have so many shareholders. Startups succeed for a large part because they can make decisions instantly, and react faster than competitors, who are often more “corporate”. With having 4 or 5 voting shareholders on board, chances are your company won’t be that flexible and dynamic anymore. Also, any investor would prefer to just talk to 1 or 2 persons, which for them is just more clear and manageable.

But let’s look ahead a bit. Let’s say your startup has 4 founders with equal shares and voting rights and you land an angel investment who “after-money-in” gets 20%. So now your startup has 5 shareholders and a capital to last a year. I’m making this assumption because I’m mostly talking about digital startups that will need a longer period to become bootstrapped and even when bootstrapped will require more (growth) capital in the future.

In my experience (and I was one of them as well), startup entrepreneurs tend to ignore looking into the future. This is often because startup entrepreneurs have a very positive outlook on life in general, and specifically on their business. But in most cases it’s clear as day that at some point you will need extra capital, whether it’s for compensating losses, solving cash-flow issues or growth capital. This is where investors will strike, a (most of the time) non-profitable company in need of quick cash is an easy target. The result is the existing investor or a new investor will take a large part of the shares resulting in the founders diluting to a questionable percentage while still very much in startup phase.

Needless to say that as a founder you won’t be too happy diluting to let’s say 10-15% after just 1-2 years. But also from investor point of view this is not really the ideal situation. Many shareholders who are all less incentivized doesn’t strike me as a perfect situation. The simple solution of buying out some of the shareholders often fails because there’s simply no value yet so why would they sell?

My tips to anyone planning to start a digital business would be:

1. 1. Start with just two founders;
   2. Don’t give people shares because you can’t pay salaries (!);
   3. Hold of any (angel) investment as long as possible, create as much value first. If needed borrow money from family or friends or find alternative income sources;
   4. Plan ahead! Talk to people who have been there and be realistic in your expectations. In any case avoid a situation in which you need money urgently, this will put you in an unnecessary weak position in any negotiations;

To anyone saying “That’s easy when you have money!” True, so be creative and work hard. Many digital startup entrepreneurs have alternative income sources. In the early days of Tokobagus we were selling e-commerce development services which allowed us to pay the bills and work on building Tokobagus.

Are you involved in a really early phase (digital) startup and considering to get (angel) funding to make life a bit easier? Wanna pay some of your key staff with shares instead of salary? Though money is both a problem as well as a necessity, you might want to read this first. Contact Alliance Group Capital

Article Source: https://EzineArticles.com/expert/Deb_Gabor/1640174

Article Source: http://EzineArticles.com/7925542

If you are venturing into the hospitality industry, you have to account for certain factors that can increase the chances of your success. Four such simple, yet important, things that you should always remember include-

• • Be Smart With Your Finances: As with any other business, the smarter you are with your finances, the more likely you are to taste success in the hospitality industry. And this starts right from your investments. Do not make all your investments from your own funds. Instead, use a healthy mix of capital, loans, and other financing options. For example, for acquiring all equipment, you can opt for a hospitality equipment lease from reputed leasing companies. This will allow you to change the equipment whenever you want by just canceling the lease and taking a new lease on the new equipment. As such, wasting capital on purchasing the equipment makes too little sense. In the same way, be very careful with your expenses. Cut down any expense that you feel is unnecessary. But remember to apply discretion here and do a thorough research to ensure that the expense you are cutting off is truly non-productive.

• • Develop Strong Business Relationships: Build beneficial relationships with other businesses and develop your network. But remember that the arrangements should be mutually beneficial. Else, those business relationships won’t last long. For example, you can contact a local store and arrange for them to distribute a 10% discount at your restaurant coupon when customers purchase anything from their store. In this case, both you and the store owner benefit in some way. Such types of marketing and business relationships are far likelier to last than any deal in which only you end up benefiting.

• • Always Be Ready For Emergencies: Unfortunate events can happen anytime. And in the hospitality business, if you are unable to handle such events with minimal damage, you not only risk suffering, loss but may even have to shut down your operations. For example, if there is a fire in your restaurant, then you must ensure that all customers are properly rescued from the place. For this, you must have already taken precautions against fire hazards, preparing strategic exit points at all important locations. This would ensure that people can quickly get out of the place without any mad rush. Not foreseeing such potential hazards can end up costing you dearly, both financially and in terms of reputation.

• • Hire The Most Pleasant Customer Relationship Staff: Always hire the most pleasant person to handle the customers. The more they are able to make the customer feel comfortable and happy, the more your business will grow. As simple as that. As such, if you have to pay a higher salary for getting the right person for the job, don’t hesitate to do it.

If you keep the above in mind, whether it be getting the hospitality equipment by lease, foreseeing emergencies or any of the other things, you will surely taste more success in the industry.

Our hospitality equipment team has over 10 years of experience with helping well-known brands finance their renovation and equipment needs. We’ve provided financing for franchisor-mandated upgrades such as guest room and lobby furniture, TV’s, A/C units, mattresses, and computer reservation systems. Apply for Hospitality equipment lease from Alliance Group Capital

This commercial financing article will describe the importance of avoiding “problem commercial lenders”. The article will NOT name specific lenders to avoid, but key examples will be provided to illustrate why prudent commercial borrowers should be prepared to avoid a wide variety of existing commercial lenders in their search for viable commercial financing.

I have been advising business owners for over 25 years, and I have encountered many commercial financing situations which have involved commercial lenders that I would not recommend as a result. These problematic situations have especially involved commercial mortgage loans, credit card factoring and unsecured business loans. As a direct result of these experiences and daily conversations with other commercial financing professionals, I do in fact believe that there are a number of commercial lenders that should be avoided. This conclusion is typically based on more than one negative experience or an obvious pattern of lending abuses.

I have published many articles which are designed to assist commercial borrowers in avoiding commercial financing problems. One of the most serious commercial financing situations is a commercial lender that causes problems for their commercial borrowers on a recurring basis. It is particularly this type of commercial lender which prudent commercial borrowers should be prepared to avoid unless viable alternative commercial financing options do not realistically exist.

Here are a few examples of why certain commercial lenders should be avoided.

COMMERCIAL FINANCING AND COMMERCIAL LENDERS TO AVOID EXAMPLE NUMBER 1 – Yes or No?

I have published an article which discusses the tendency of many banks to say “YES” when they mean “NO”. Such banks will typically attach onerous commercial financing conditions to business loans instead of simply declining the loan. Business owners should explore other business loan alternatives before accepting commercial financing terms that put them at a competitive disadvantage.

COMMERCIAL FINANCING AND COMMERCIAL LENDERS TO AVOID EXAMPLE NUMBER 2 – The Commercial Appraisal Process

For commercial real estate loans, commercial appraisals are an unavoidable part of the commercial loan underwriting process. The commercial appraisal process is lengthy and expensive, so avoiding commercial lenders which have displayed a pattern of problems and abuses in this area will benefit the commercial borrower by saving them both time and money.

COMMERCIAL FINANCING AND COMMERCIAL LENDERS TO AVOID EXAMPLE NUMBER 3 – Think Outside the Bank

In smaller metropolitan markets, it is not unusual for a dominant commercial lender to impose harsher commercial financing terms than would typically be seen in a more competitive commercial loan market. Such commercial lenders routinely take advantage of a relative lack of other commercial lenders in their local market. An appropriate response by commercial borrowers is to seek out non-bank commercial financing options. It is neither necessary nor wise for commercial borrowers to depend only upon local traditional banks for commercial financing solutions. For most commercial loan situations, a non-local and non-bank commercial lender is likely to provide improved commercial financing terms because they are accustomed to competing aggressively with other commercial lenders.

Alliance Group Capital

A direct lender is an independent financial institution that makes loans to individuals and small businesses, rather than banks or credit unions. They offer low interest rates and flexible terms, which means you can get the loan you need without paying any fees. There are more than 3 million direct lenders in America alone, and they provide over $1 trillion in financing each year.

The best part about direct lending? It’s fast! If you apply for a loan with a direct lender, it could be approved within 24 hours. And if your application isn’t approved, you won’t have to wait weeks for your money.

With direct lenders, you can also take out multiple loans at once, so you don’t have to pay anything extra. For example, if you want to buy a business car, you might qualify for two loans: one for the down payment, and another for the rest of the purchase price. You’ll pay less interest on both loans, and you can still afford to make all payments on time.

Another great thing about using a direct lender is that you can save even more money by refinancing your existing loan. Refinancing means taking out a new loan with a different term (usually between five and ten years) or a lower rate. This way, you can stretch your original loan while saving on interest payments.

For example, let’s say you already have a $10,000 auto loan from a bank. Then you decide to refinance into a $15,000 loan from a direct lender. By doing this, you’ll save $5,000 on interest charges, which will put more money in your pocket.

You might not think it’s worth the hassle of applying for a second loan, but there are many reasons why it’s beneficial to do so. Here are just a few:

– You’re able to keep your business instead of having to sell it.

– You can buy a bigger property, or more effective business equipment, with less cash upfront.

– You can use the money you would’ve paid in fees to invest elsewhere.

– You can give your employees raises and bonuses.

– You can save money on taxes.

– You can start investing in yourself.

– You can pay off your debt faster.

– You can consolidate multiple loans into one.

– You can pay for home improvements, vacations, and other expenses.

– You can build equity in your house.

The benefits to using a Direct Lender are numerous. For More Information Alliance Group Capital