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What’s the difference between a startup and any other business?
All startups are businesses, but not every business is a startup.
Nearly 100,000 new businesses were formed each week in the United States in 2022. But what sets a startup apart?
As a professor of marketing and innovation who has worked at several startups, including Netflix in its early days, I can share some of the differences between a startup and a more traditional business.
A traditional business generally has an established solution to a known problem and has not developed anything particularly new.
For example, a new sushi restaurant in your neighborhood may be a new business, but it is by no means a startup. However, if a new local company had developed a device that automated sushi-making and tried to get sushi restaurants to try it, that would be a startup. The restaurant is simply trying to satisfy the neighborhood’s needs for sushi, whereas the device company is trying to change all sushi restaurants with its new method.
A startup is centered on an innovation that has never been brought to market before. This could be a product or service, a technology, a process, a brand, or even a new business model. Generally, they have big industry-changing goals about disrupting the market leader or current customer behavior.
Think Uber, an inventive startup that originally operated in San Francisco. It built off the time-tested taxi model – a business – and created a unique ride-sharing app that had never existed previously.
Regardless of their product and location, the main focus of a startup is to figure out if there is a need for their product.
Startups are trying to find and optimize a target market for their new solution. Who would value and buy what they have developed? Startups often think they have a good picture of who would like what they are building, but they’re not always right.
For example, I headed marketing nearly a decade ago at relationship-focused tech startup Contactually. When Contactually began to promote its services, it aimed for small businesses in several industries, thinking that the product met needs equally across all of them. But subsequently we found out that our offering worked particularly well for real estate agents and brokers, and we started to put all efforts into meeting this group’s needs exclusively.
Part of identifying a target market is establishing a product/market fit – the degree to which the innovation satisfies a market need. Startups know they may be on to something when customers from the target market purchase the new solution and are willing to share their positive experiences with others.
Once a startup has passed those stages, it will try to scale. This means successfully growing the startup so that it’s not limited by funding or staff. For example, once Netflix launched its streaming platform in 2010, it was able to scale around the globe in an easier and faster manner than if it had stayed with its original DVD-by-mail business model.
Finally, to accomplish the things that would enable it to scale, startups are generally focused on spending time with and learning from their customers. Once they reach a specific size, most businesses focus less on customer learning and more on making the company more efficient.
Amazon, Netflix, Uber and Airbnb are global powerhouses that began as startups. Successfully growing a startup into a prosperous company is extremely hard. Industry data suggests that 90% of startups will fail.
Once established within their market, traditional businesses find themselves with a different challenge: running more efficiently.
Startups may be able to rely on funding from different kinds of outside investors while they gain their footing. But an established business needs to run smoothly to make a profit from what it’s selling.
Non-startup companies need to figure out how to manage workers better and run the business in a way that solves the customers’ problems while enabling the company to meet all of its goals.
For a non-startup business, specific goals could be how much money or profit the firm makes, how and where to expand to grow more or faster, how much time it takes to create a product, or how to make more products with the same or fewer resources.
While the focus of a startup is to determine if there is a demand for a new and innovative product, the primary goal of a traditional business is to create an efficient operation that can last far into the future.
With luck, a successful startup, like Uber or Netflix, will scale and grow, eventually evolving into a traditional business – one that some future startup may try to disrupt with a brand-new idea.
Hello, curious kids! Do you have a question you’d like an expert to answer? Ask an adult to send your question to CuriousKidsUS@theconversation.com. Please tell us your name, age and the city where you live.
And since curiosity has no age limit – adults, let us know what you’re wondering, too. We won’t be able to answer every question, but we will do our best.
Joel Mier, University of Richmond
Joel Mier, Lecturer of Marketing, University of Richmond
This article is republished from The Conversation under a Creative Commons license. Read the original article.
I am looking for two additional expert witnesses in a commercial real estate lending case. You will be paid an expert witness fee for your time, and qualifying as an expert looks great on your resume or on your website. All testimony will be given using Zoom. Here are the details. Last week, Bank of America shook up the investing world with their latest letter to their investors.
A torrent of fiscal and monetary stimulus to fight the effects of the coronavirus, combined with already-low interest rates, will contribute to a ‘Great Debasement’ of the U.S. dollar in the years ahead,” according to Bank of America Merrill Lynch.
“That, in turn, will make investments in commodities and emerging markets more appealing, as investors look for reliable inflation hedges and savvy ways to play a weaker greenback,” BofA chief investment strategist Michael Hartnett wrote.
“Interest rate repression means investors can’t hedge the inflationary risk of $11 trillion of fiscal stimulus via ‘short bonds’ … so investors are crowding into ‘short US dollar’, ‘long gold’ hedges,” Hartnett wrote.
U.S. dollar depreciation is “well underway as the default narrative for a US economy with excess debt, insufficient growth, and maxed-out monetary and fiscal stimulus,” he added.
“Holy Poopski!” as they say in Russia. In my lifetime, the dollar has always been the strongest currency in the world. Now Bank of America is saying that the value of the dollar will be falling steadily in the coming years. This means we will start to suffer inflation again, after decades of disinflation, as imports cost more and more.
But what was The Great Debasement? Debasement means mixing more of a common metal with the precious metal (usually gold or silver) that gave the coins its worth, while maintaining the face value of the coin.
The reasoning behind debasing the coinage was to be able to make more coins and therefore create more money. However, the side effect was inflation, with people hoarding the older coins that contained more of the precious metals.
The Great Debasement (1544–1551) was a currency debasement policy introduced in 1544 in England, under the orders of Henry VIII. The Great Debasement saw the amount of precious metal in gold and silver coins reduced, and in some cases, the precious metal replaced entirely with cheaper base metals, such as copper.
By 1551, the coinage was worth one fourth to one-sixth what it had been before Henry VIII began the debasements. Eventually the layer of silver had become so thin that it would wear off, revealing the copper below. This happened particularly on Henry VIII’s nose on his image on the coin, giving him the nickname, Old Copper Nose.
Overspending by Henry VIII to pay for his lavish lifestyle and to fund foreign wars with France and Scotland are cited as reasons for the policy’s introduction. The main aim of the policy was to increase revenue for the Crown, at the cost of taxpayers through savings in currency production, with less bullion being required to mint new coins.
During debasement, gold standards dropped from the previous standard of 23 carat to as low as 20 carat. Silver was reduced from 92.5% sterling silver to just 25%. Revoked in 1551 by Edward VI, the policy’s economic effects continued for many years until 1560, when all debased currency was removed from circulation.
In defense of Henry VIII, the countries of Europe had been debasing their own currencies for decades. A common practice of the period was the clipping of coins, or removing some the valuable metal from their edges. This is why the edges of later coins were eventually given those scores of vertical groves, to expose any evidence of clipping.
Because English currency had not yet been debased, it was, prior to 1544, the envy of Northern Europe. Unfortunately, English currency kept disappearing from circulation.
Think about it. You owe a debt that must be repaid with a one-ounce gold coin. You have two coins. One is a French gold florin that is 50% gold. The other is an English gold sovereign that is 88% gold. Which will you likely use to repay your debt? Which coin will you keep? This leads us to Gresham’s Law.
Gresham’s Law is the tendency for money of lower intrinsic value to circulate more freely than money of higher intrinsic and equal nominal value. Nominal here means face value. In layman’s terms, “Bad money drives out good.” Debased coins drive good coins out of circulation.
When merchants worldwide lost confidence in the English mint, English traders were financially punished. If they had a coin that was 20 carat, it traded at an even lower exchange rate, say 18 carat. Since England was a trading nation, and its merchants were losing money on every exchange of coinage, the debasement was eventually ended.
But that didn’t immediately end the problem for English merchants. English coinage had lost the confidence of the world. The discrimination against English coinage continued for another nine years. Finally the Crown was forced to buy up all of the debased coins – sort of like when the U.S. eventually redeemed all of the greenbacks issued during the Civil War. The debased coins had to be melted down and replaced with totally new coinage.
Okay, so what do we with this new knowledge? If Bank of America is to be believed, investors should buy gold and international stocks, located in countries that are debasing their own currencies slower than the United States. How humiliating! Geesch.
By George Blackburne
Throughout, history, we have experienced, a variety of economic conditions, and circumstances, including, recession, inflation, and somewhere, in – between! For a few years, we experienced, very – low inflation, largely, caused by a variety of conditions, world – wide, and largely, disrupted – by, the ramifications, and impacts, created and caused, by this horrific pandemic! Currently, we seem to be experiencing, a serious amount of inflation, created, by many factors, including, but, not, limited – to: post – pandemic ramifications; Supply and Demand issues, caused, to a large – degree, by, supply – chain, issues; maintaining, unrealistically – low, prolonged period of near – record – low, interest rates, etc. With, that in mind, this article will attempt to, briefly, examine, consider, review, and discuss, 6 potential dangers, from prolonged periods of inflation, and why, it is important to know, and understand, options and alternatives, to attempt to choose, the best – path – forward!
1. Cost of Living: Some factors, determining, the Cost of Living, include: wages (and wage growth); prices, etc, and how wages, are, or, aren’t able, to keep – up, with the increase in costs, etc! Most realize, we have, in the past – few months, experienced, a huge, jump, in pricing, most – apparent, in the food stores, restaurants, and, nearly, everything, related – to, day – to – day, existence, etc!
2. Federal Reserve: In recent times, the near – historic – low, extended period, of interest rates, has, in addition, to the intended measures (helping businesses, and the economy, in trying – times), has caused a Real Estate, Sellers Market, and, a huge rise, in home prices, in most parts of this country! In addition, it created a surge, in consumer use of credit, because, borrowing, appeared, cheaper! However, most economists forecast, many of these supports, and maintaining, such low rates, will, gradually, be reduced (or minimized), probably, beginning, next year. What impact will that have, and will we see, the historic reaction, which has been, when rates rise, it helps reduce inflation, etc?
3. National economy/ conditions: Largely, because of a world – wide, supply – chain, set of obstacles/ challenged, many industries, have experienced, challenges, in terms of, getting sufficient amounts of needed materials, etc! Go into, nearly, any store, and you will see, more – sparse, shelves, than we have seen, in recent memory! In addition, building supplies, products, food, toys, cars and car parts, etc, are under – stress, because of this!
4. Worldwide economies/ economic conditions: Nearly, every nation, is experiencing, economic issues and challenges! The United Kingdom, because of worldwide, as well as specific national trends/ causes/ conditions, has been largely, impacted! Since, we live, largely, in a global economy, when there is any disruption, in the supply – chain, it affects, everyone!
5. Stock and Bond Markets: Because of several reasons/ factors, the United States Stock Market, has benefited, significantly, and experienced, significant increases, in the price of stocks. In addition to the obvious ones, because, interest rates, have been, so low, many investors, believed, stocks, were, nearly, the only game – in – town! When, if, interest rates, rise, bond rates, will rise, and existing, bond prices, will adjust, and drop!
6. Immediate, intermediate, longer – term ramifications/ impacts: The immediate impact of inflation, is, usually, rising prices, and, wages, which, usually, rise, at a far – lower rate! In the intermediate – period, we begin to see, weakening economic trends, and in the longer – term, depending on how long, it ensues, there are often, several, undesirable ramifications, and impacts!
Don’t take inflation, and its risks, for – granted! The more you know, and understand, the better prepared, you will be!
Richard has owned businesses, been a COO, CEO, Director of Development, consultant, professionally run events, performed financial planning, consulted to thousands, and conducted personal development seminars, for 4 decades. Rich has written three books and thousands of articles. Website: http://plan2lead.net and JOIN the RICH IDEAS Facebook group: http://facebook.com/groups/RICHIDEAS
Article Source: https://EzineArticles.com/expert/Richard_Brody/492539
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What are IBAN accounts?
IBAN or International Bank Account Number is basically having a global bank account. It is created internationally to identify the bank accounts across national borders and overseas countries. This is an important account because whenever you make an international payment, it is compulsory to have the IBAN. It contains both a bank account number and an identification code for the bank itself. As a matter of fact IBAN is a unique code that easily identifies a beneficiary’s bank account for the purpose, round the globe. It is not a new account number, only an ungraded version of digital system of your current account.
The IBAN consists of an alphabetical country code, which is followed by two digits, and then up to 35 characters of the bank account number. An IBAN is used to uniquely and properly identify or recognize a customer’s bank account across the world. Today, more than 54 countries are using IBAN accounts and mostly the counties of the European Union, UAE, Kuwait, Saudi Arabia, Germany and more are the participants.
Significant Features of using IBAN accounts
• An IBAN is a Straight Through Processing or STP of Electronic Payments system. This system minimizes delays and extra costs related to account numbers.
• The implementation of IBAN will bring more efficiency in the process of remittance related transactions. It serves to cut risk of transcription errors.
• The IBAN accounts facilitate with quicker processing of your funds transfer.
• Normally, banks are required the accuracy IBAN at the time of a fund transfer and they check only the IBAN is correct or not to make the funds transfer. This establishes the operation of funds transfer from one place of the world to another easier as well as more immediate. It is used for sending and receiving both local and international funds transfers.
• You don’t have to pay any additional charge while using IBAN, only you have to pay normal transaction processing fees.
• Now, it is easier for the IBAN customers to perform their funds transfer because of online banking facility. It reduces the monetary value and enhances the operational efficiency.The Purpose of using International Bank Account Number or IBAN accounts
International Bank Account Number is essential for the purpose of receiving as well as sending an electronic payment from the bank. You can receive and send an electronic payment internationally or overseas and also locally, when you have a correct and accurate IBAN. If you want to send an electronic payment through IBAN to another country, it is possible only when that country has adopted IBAN facility. This means both the parties must have the International Bank Account Number or IBAN accounts to have successful fund transfer transactions.The consequence of using improper IBAN
Due to any error or misunderstanding, you have given incorrect and forget to give the IBAN information, a certain amount of charge is applied by the receiving bank and your IMT may be rejected. The amount of charge will be deducted from your payment or else charge back. Thus, always check your IBAN properly before making fund transfer transaction.
If you wish to have an IBAN account, then go for it because it is easy to create and also a great help for fund transfer across the world smoothly.
Article Source: https://EzineArticles.com/expert/Dipali_Kumari/2559335
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Working capital loans can be used to help companies pay for their operational costs. The net capital is also defined as the difference between a business’s current assets and liabilities. It’s the amount of money the company has currently as its disposal to pay for daily and immediate expenses. If you are having trouble meeting those financial requirements, then you’ll want to look into business capital loans.
However, there are instances when an organization might have more than enough in working capital all the time, yet it still might not be a good thing. This could be a sign that the business isn’t utilizing its assets to the fullest, and you might want to look for better ways to utilize those assets.
Regardless of why you think this kind of loan might be right for you, it’s important to understand the working capital ratio to help you determine how much money you should request. In terms of financial health, you will want a ratio between 1.2 and 2.0, regarding current assets / current liabilities. If a business has $100,000 in current assets and $80,000 in current liabilities, that means 100,000 / 80,000, which results in 1.25 s the working capital ratio.
If your working capital is below 1.2, then you will want to request the amount of money you’ll need to bring it up some when applying for business capital loans.
Ways to Utilize Business Capital Loans
You can go about applying for business loans in a number of ways. There are installment loans or term loans that are issued to borrowers in a single lump sum, and from there borrowers are expected to pay back that amount itself plus interest in fixed installments. You’ll find numerous online lenders and alternative lenders that are offer a quick application process and competitive rates.
The Small Business Administration also offers a number of loan programs, including capital loans, most commonly in the form of 7(a) loans. A portion of the loan is guaranteed by the SBA, so if you lack the collateral necessary to get a loan on your own, the 7(a) might be a good option.
Before applying, have an outline of how you plan to use the money. Lenders will want you to be as detailed as possible. Also, don’t just think of how your business will benefit with the loan, think of the possible setbacks as well. If you don’t carefully look into the fees, terms and conditions, repayment schedule, interest rate, etc., your company might end up being in an even worse situation ultimately.
Regardless of what type of business capital loans you’re looking for, one lender you might want to consider is AnalytIQ Group. The site offers lines of credit for small business, including those that require working capital, and more. The application process is extremely fast.
To get closer to financial freedom, visit Our Client Center:
Article Source: https://EzineArticles.com/expert/George_Botwin/1425000
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Surveys show that 94.7% of small business owners feel their only lending resources are local banks or personal credit cards. This common sense advice will help you avoid these common business loan mistakes, regardless of your personal credit history… and avoid pledging your personal property as collateral.
First of all, getting approved for a commercial loan is definitely easier than getting personal loans… regardless of your personal credit scores. Additionally, getting the right types of corporate credit is absolutely critical: if you want to protect your personal assets, minimize the risk of a personal lawsuit affecting your business, and to your ability to weather the economic changes that happen overnight.
All business owners must be much more proactive about developing relationships with the right types of lending institutions. You usually want to start your application process with out-of-state, national lenders… not your local or regional banking institutions. National lenders typically won’t require a personal guarantee or your social security number.
Follow this simple roadmap to obtain a small business startup loan, a business debt consolidation loan, a bad credit business loan, or a government business loan… although I strongly recommend that you find a commercial loan expert who can help you through the process of building a strong corporate credit rating.
Finding a competent business loan expert will give you a head start on your competition & also let you focus on running your day-to-day activities… instead of dealing with the hassles of establishing a strong business credit rating. An excellent business credit score can help your company’s image, overnight. And, finding a small business loan expert isn’t that difficult. You just need to know where to look.
Now… let’s get started… before you start applying for any business loans!
1. How is your business structured? Is it a sole proprietorship, C-corporation, S-Corporation, Limited-Liability Corporation (LLC), Partnership, or Trust?
2. How long has your business been recognized by your State & Local government?
3. Has your company ever had derogatory information reported against it to either of the two (2) most popular business credit reporting agencies, Dun & Bradstreet or Experian?
4. Are your commercial permits, licenses and registrations current?
5. Does your business have a physical address, or are you trying to use a U.S. Post Office Box instead?
6. Is your business telephone number recognized by directory assistance?
7. Are your incoming telephone calls professionally answered in your business name?
8. Have you established a business checking account?
9. Have you registered & asked for an Employer Identification Number (also known as an EIN) from the IRS?
If your answer to the first question was a sole proprietorship, partnership or trust; I urge you to re-establish your company as a corporation or LLC. I’m not going to provide you with legal advice, but many CPAs and attorneys highly recommend
LLCs (Limited Liability Corporations) as a way of protecting your personal assets & estate… in the event of any lawsuits being filed against your company.
As a sole proprietor, your personal assets are at direct risk of seizure or forfeiture when faced with most types of legal action. Additionally, if you are applying for business loans in a corporation’s name… most lending institutions will not require you to provide any personal guarantee!
A corporation can still face difficulties applying for business credit, if it has been in business less than two (2) years or had previous credit problems reported against it. Here are some ways to fix these problems.
– Purchasing a “shelf corporation” or “aged corporation” that’s been in good standing with your State government (for longer than 2 years) can drastically improve your chances for small business loan approval.
– You can attempt to repair your business credit rating by writing dispute letters to Experian or Dun & Bradstreet, which isn’t always possible.
– Some corporate credit experts will help you find, select & purchase an established “shelf” or “aged” corporation, some of which already have strong credit ratings established… saving you alot of hassles!
I cannot stress this enough… you MUST have a physical address (not a PO Box) if you want to establish a solid business credit rating. The same thing is said for telephone numbers & the way incoming phone calls are handled. Would you lend
money to a company that does not appear to have a physical address or documented telephone number?
And, don’t forget to always keep your commercial permits, licenses & registrations current… and always keep copies of these documents in case a potential lender asks for this information.
Business checking accounts are a must. Again, this proves stability to your potential lenders. Here are a couple of tips for you, in case you’ve had any checking accounts closed by a financial institution. Pay off the outstanding balance (if any) that’s being reported by the bank, or open a checking account at a bank or credit union that doesn’t use the ChexSystems credit reporting system. Most credit unions don’t use ChexSystems, and you can always find a list of banking institutions in your area that don’t use ChexSystems… by simply doing a search on Google, Yahoo or MSN.
Small business credit ratings are tracked using your business name, business address and employer identification number (EIN). You can apply for & receive an EIN at the IRS’s website (irs.gov). You can also call the IRS, but be prepared for long waits.
Then you’ll want to obtain a D-U-N-S number from Dun & Bradstreet, the largest business credit reporting agency. You can apply for this without any fees at Dun & Bradstreet’s website (dnb.com), and you’ll usually receive this number within
thirty (30) days. Do not apply for this number until you’ve prepared your self thoroughly, because any information you give to them… goes into your credit file… permanently.
After you’ve obtained your D-U-N-S number, you’re probably ready to start establishing some vendor credit. Vendor credit is where many business owners start establishing business credit ratings. Simply go to staples.com, officemax.com or officedepot.com to get started. Then, you’ll also need to fax your business telephone bill & the credit application to them… on your business letterhead (which you can create using your favorite word processing software if you don’t have expensive stationery). They usually don’t require any personal guarantees (if you’ve followed the outline above), and you’ll usually receive a starting credit line of $750.
This is critical & I repeat… critical! Always pay your invoices before the grace periods begin… especially on unsecured credit cards or vendor credit lines. Dun & Bradstreet will lower your credit score for every day a creditor reports your bill as unpaid while you’re within your grace period. Whereas, personal credit scores are not lowered unless you are 30+ days past your due date.
Dun & Bradstreet reports what’s known as a Paydex score (your corporate credit score), and a score of 80 is very good… with 100 being the highest score you can achieve. Your Paydex score is issued once you’ve established a known
vendor/credit relationship with at least five (5) creditors.
There are shortcuts that will help you get much more than $750 alot faster. When using a business credit expert, most small business owners (even startups) can be approved for vendor credit lines of $25,000-$50,000 and open credit lines of
$50,000, $250,000, $500,000 or more… in as little as 45-60 days… by using their knowledge of the application process & “shelf” corporations.
Now, it’s your choice. Are you going to go against the grain & try to establish business credit on your own (which could prove costly to your business health, growth & survival)? Or, will you choose to utilize a corporate credit expert… allowing you to remain focused on your daily business needs?
Most business owners make the mistake of trying to do this on their own… usually trying to find grants, investor “angel” money, or falling back onto the “personal credit card sword”. Don’t be a casualty like the rest. Learn more about how you can use the same tools that informed, educated millionaires have been using for decades.
By: Lee Kendrick
Author Bio
Lee Kendrick has been featured by several national magazines as a credit expert, finance professional & public speaker.
Register for his newsletter at http://leekendrick.net/credit-expert/ & discover how you can be approved for $250,000 or more in as little as 45-60 days regardless of your personal credit.
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Raising money for business can be a very useful and potential litigious activity if not done properly. It is important to keep certain rules/laws in mind so that you and your potential investor(s) are on the same page throughout the entire process. Raising venture capital from business angels or a venture capital firm is no easy task however, but it is possible with all the right ingredients.
Seven Essential Rules When Raising Money from Angel Investors
1. Always have a complete, written, professional business plan.
2. Always tell the potential investor that the worst case scenario is that they can lose their money.
3. Make sure your assumptions section of your business plan is extensive, accurate, and professional.
4. Have a CPA (Certified Public Accountant) prepare your cash flow projections using the NPV (Net Present Value) break-even point.
5. Dress conservatively. Men wear a blue suit, white shirt, and a red tie, for example.
6. Be confident and look them directly in the eye when presenting to U.S. prospects.
7. Have your attorney review any agreement before signing.
When presenting to an angel investor always have your written business plan with you and use it during your meeting with your prospective investor. This is extremely important. When the investor asks to see your business plan, you better have one or you are dead in the water. Not having one is truly a deal killer. If you are empty-handed, you will look amateurish and hurt your credibility. Not having a business plan is like showing up to play football and purposely leaving the football at home. It is your most valuable and most essential tool set when seeking money for business.
Cash for business when you start up and continuous cash flow are two of the most critical factors that determine whether you survive long enough to have a chance to thrive and become profitable. The old adage “cash is king” holds very true here; it is liken unto a beating heart, if it stops, you are no longer living. If your cash flow stops or you run out of cash for business operations, then you are out of business. Often times business angels will agree to provide initial and future funds for business. Future funds for your business are often tied to benchmarks that you will set together when you start your financial relationship.
When dealing with private investors (angel investors), they already know that the worst case scenario is that they could lose their money. If you do not acknowledge this well known fact as being true, they may feel that you are deceiving them, and rightfully so. By getting this out in the open, you become a truth-teller, an honest broker, and as such, more trustworthy.
The assumptions section of your plan is your logic, reasoning, and basis for your conclusions. This shows the potential investor how you think, what you know, and how well you can apply what you know to a business situation. This section is a double-edged-sword. It can be your best friend if you are savvy and know what you are doing, or it can be your worst nightmare if your assumptions are grounded in fantasy instead of fact. The cash flow projections are also a particularly important part of your business plan and should be prepared by a CPA.
The conservative dress mentioned in rule number 5 has been studied and found to increase your ratio of sales closed to number of presentations given. Go with what works, regardless of the urge to dress differently. Be confident and look them in the eye for U.S. prospects. There are other cultures that you should not look in the eye as much, so do your homework if presenting to international prospects and find out their culture norms in advance. This paints a positive picture in your U.S. prospect’s mind, one of confidence, sureness, and honesty.
Have any agreements that your private investor (angel) may offer reviewed by an attorney before you consider signing. Do not fall victim to the pressure of urgency. Take a day to think it over and present it to your attorney. You will look more intelligent to them and will be able to make a much more informed decision.
Business help can be an essential part when seeking cash for business. This is particularly true when it comes to raising money for a new business. Part of your preparation to raise capital is researching, writing, editing, and producing your written business plan. Often times, we as entrepreneurs get so close to our own business plan that we lose our objectivity. In other words, we fall in love with our plan, making it difficult to clearly see any mistakes or flaws in our facts or assumptions. This is why having the objective feedback of another person that is skilled and educated in business is crucial. Seek out the help you need and do it right. I wish you the best of luck in your efforts.
If you would like further help with developing your business plan or would like more information on venture capital, please visit my Amazon Author Page to discover my latest books.
Mr. C. Mark Johnson is a writer, author, and entrepreneur. He holds a Master of Business Administration (MBA) in International Business and numerous certificates. Mr. Johnson is also a United States Air Force veteran. He lives in the Southeastern United States and enjoys traveling, trail walking, walking and training his dog, and the martial arts.
Article Source: https://EzineArticles.com/expert/C_Mark_Johnson/1150802
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Small businesses are important parts of communities and a key driving factor of the current economic recovery. Modern technology and workplace trends are transforming how these organizations are run, not only to increase productivity, but expand the possibilities of the future.
New research found that the United States is home to 32.5 million small businesses employing 46.8% of the private workforce, according to the 2021 Small Business Profiles from the U.S. Small Business Administration. Combine small and medium-sized businesses, and you cover the vast majority of companies in the country — a powerful economic force.
“We see a bright future ahead for businesses in 2022,” said Eric Yu, Lenovo senior vice president, small and medium business segment. “Small to medium-sized businesses can utilize the best in technology to help overcome the challenges today and drive growth, engage employees and boost profits.”
Yu and the experts at Lenovo offer tips for SMBs based on their top technology predictions for 2022. Learn more at Lenovo.com.
1. Add hybrid workforce technology
Workplace culture continues to evolve with hybrid workforces here to stay. Technology is driving this momentum forward, enabling businesses of all sizes to remain agile and adaptable. SMBs should seek purpose-built technology solutions that bring equity, parity, presence and inclusion to hybrid work.
Emerging technology will also advance SMB growth, with augmented and virtual reality creating custom workplaces for employees, immersive training, efficient data analysis and enhanced productivity. Just imagine the possibilities of training employees virtually, tapping resources beyond what’s available locally and removing the need to travel. Technology makes this a reality.
2. Enhance digital security
Digital threats are as much a concern for SMBs as they are for large companies. Whether it’s private client data, proprietary company information or financial accounts, security must remain top of mind in 2022 as cybercriminals become savvier every day.
Prioritizing security with seamless authentication driven by artificial intelligence and biometric technology (such as fingerprint scans) will be key for SMBs as they further transition to public key infrastructure (PKI)-based device security, like those used today to access mobile banking applications, and multifactor authentication, for application and device access.
3. Invest in modern monitors
The desktop monitors SMB employees use can transform their work experience for increased comfort and capabilities. Investing in modern monitors makes sense, especially for remote employees and those in technology roles. For example, SMB employees can seamlessly multitask through modern desktop monitors that offer larger screen real estate and single cable management for easy connections.
What makes these monitors different? Next-generation monitors feature higher resolution, new aspect ratios such as ultra-wide and low blue light tech to reduce eye strain. Monitors will extend functionality for SMB employees as they can provide a docking hub for connection of other devices such as smartphones, speakers, headphones and tablets.
4. Upgrade your accessory ecosystem
Beyond modern monitors, other aspects of home office technology are transforming, too. Creating an up-to-date and efficient workspace at home is important for productivity but also for personal well-being. Providing employees with complementary tools that bridge the gap between home and office will elevate the experience and empower hybrid working trends.
When researching new accessories for SMB employees, consider the most common pain points of power anxiety, poor audio quality and physical stresses of inappropriate input devices resulting from longer working hours. Power banks, noise-canceling headphones certified for unified communications platforms and ergonomic mice and keyboards will become more mainstream in 2022, allowing teams at SMBs to improve their work-from-anywhere capabilities and productivity.
5. Support agility and flexibility
The growth of hybrid and remote workplaces has elevated the need for work tools that allow employees to work when and where they want. Evolving form factors and better connectivity will become more ubiquitous, allowing SMB employees to set up shop almost anywhere. This flexibility can add strain to IT resources, and impact business capital expense.
SMBs need to consider as-a-service subscription-based models, not just for hardware but to support their solution lifecycle. Successful businesses will embrace this trend and seek vendors with end-to-end capabilities to securely deploy to remote users, offer hardware and software managed services and provide end-user tech support. As-a-service solutions reduce pressure on capital, allowing SMBs to redirect investment into new growth opportunities.
(BPT)
When is the right time to consider VC or Private Equity for your enterprise? Initially every entrepreneur needs to first see if they have exhausted all other options first. Typically, a company would be low on equity when considering private investors. There are however multiple sources of equity capital, including, Friends & Family, Business Angels, VC’s, Corporate/Strategic Investors, Private Equity companies or The Entrepreneur’s own capital.
For those seeking capital of $500k+ look for VC. For smaller investments, entrepreneurs should seek a Business Angel or Debt Capital. An understanding of the different types of funding stages is therefore useful so see below.
Pre-seed funding is funding that is needed prior to physically construct the enterprise. Usually this funding goes to putting together a good business plan that can impress potential investors.
Seed funding is funding that is required to start building the company. It is possible that some companies could if appropriate skip this funding phase, but seed capital is usually the capital that is required to get the basics for a start-up. Usually at seed stage, a company is not yet ready to open for business, and this funding is usually used to rent office space, real estate, equipment needed to produce the company’s product or service
Seed funding is less commonly invested by VC’s and is not necessarily a large amount of funding. Seed funding can range from $100k-$500k. Rarely does it exceed $1m. Seed capital can also be raised from a Business Angel, Friends and Family or the Entrepreneur’s own funds. Only 15% to 25% of VC’s invest in seed funding.
Early stage funding is usually where VC is sought. A company is usually ready to trade but requires additional capital for salaries.
Later stage funding is also known as expansion/growth stage funding is for companies who are doing well and are seeking to expand.
There are numerous ways that entrepreneurs raise seed capital to get started. These conventional ways include raising debt capital from a business lender, merchant bank or angel investor who are willing to invest seed capital into the business. Other more ingenious entrepreneurs raise seed capital through raising debt capital, sweat equity and funding from friends and family. VC is usually raised with early stage funding, i.e. as above, series A or series B funding. In most cases, VC’s will not invest less than $1 million in a company.
Understand these and you will be off to a good start and be taken seriously.
If you need help or guidance contact AnalytIQ Group
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CHECK OUT THESE PRIVATE MONEY LOAN PROGRAMS
There are a number of laws that are applicable to raising capital from a third party source. This is primarily due to the fact that the Securities and Exchange Commission has outlined a number of regulations that ensure that angel investors are protected from companies that do not intend to use the funds as they have advertised to a potential funding source. Whenever you are thinking of raising capital, you should work with an attorney that can assist you with developing the appropriate documentation for a potential funding source. It is imperative that you focus substantially on ensuring that you remain within the letter of the law as it relates to working with a third party capital source.
In some instances, you may be required to pay a certain amount of taxes on the amount of capital that you raise from a private investor. However, these taxes are only applied on the state level. You should ensure that your certified public accountant makes you well aware of any and all applicable taxes that you may incur as a result of your capital raising activities.
When you are raising capital from angel investors or a venture capital firm then you may need to have a private placement memorandum. This document will ensure that you are able to create a standard method of how you offer your deal to prospective investors. Additionally, this document will make sure that the investment that you are offering is provided only to accredited investors or sophisticated investors. The Securities Exchange Commission portal has a number of pieces of information that will allow you to learn the difference between these types of investors as well as providing you with an oversight as it relates to the rules that you will need to follow in regards to your capital raising activities for your small business.
In closing, it is always important that you seek the appropriate accounting and legal counsel whenever you are thinking about raising capital from a third party source. This will ensure that you do not fall into the trap of potentially losing your investment funds because you did not properly follow the applicable laws. It should be noted that securities laws are not only federally based but stated based as well. Although this may be an expensive endeavor for your business, the return on investment by having the appropriate advisers in place will ensure that you do not face still fines and penalties that may impact your business in years to come.
Matthew Deutsch is a prominent business plan writer. His work has been included in nine books pertaining to this subject. Additionally, Mr. Deutsch has written extensively on subjects regarding entrepreneurship, small business lending, angel investing, and other related topics.
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A hard money loan refers to a type of loan. However, what makes it different from other types of loans is that it’s secured on real property. Moreover, they are considered short-term bridge or last resort loans. Basically, they are used in different real estate transactions. The lenders are either companies or individuals, not banks. Read on to know more.
Key Takeaways
Given below are some of the salient features of these loans.
How does a Hard Money Loan Work?
Usually, the terms of hard money loans are based on the value of the real estate, not the borrower’s creditworthiness. Since conventional lenders like banks are not the lenders, private lenders or firms are most interested in this business.
Also, these loans may be a good choice for property flippers who have plans to renovate a property and sell it again. Here you may be thinking the cost of this type of loan is quite high. But the good thing is that the extra cost is offset by the loan will be paid off rather quickly. In most cases, the loan is granted for a period of 1 to 3 years. Aside from this, they offer a lot of advantages as well.
Aside from this, this type of loan is considered a great investment as well. You can find a lot of people out there who have done this business and are happy with the practice.
Special Considerations
Typically, unlike the bank financing or the financing programs offered by government, the cost of these loans is quite higher for a typical buyer. However, this cost reflects the higher risk that the loan granter bears. But the great thing is that the extra cost is a worth it as the money is available quickly. The approval process is less stringent and the repayment schedule is also quite flexible.
Also, these loans can be a great choice to deal with turnaround situations. For instance, if you need money quickly for a short-term financing but you have poor credit score, you can give it a go. Since the amount is issued pretty quickly, you can use the funds to stave off a foreclosure, for instance.
Pros and Cons
Now, let’s take a look at some pros and cons of hard money loans.
Pros
First of all, the approval process is quite faster unlike the process of mortgage or a conventional loan. The thing is that private lenders are interested in this type of business as they can make decisions quickly without running a lot of checks. In other words, they won’t check your credit history. These are the steps that slow down the process and make the borrower wait for weeks.
Typically, these investors only care about the repayments. Plus, they have the opportunity to resell the property in case the borrower fails to make payments and becomes a defaulter.
Another advantage is that the lenders don’t apply the conventional underwriting process. Instead, they evaluate all of the cases one by one. Often, applicants can sit with the lender and discuss the repayment schedule based on their circumstances. Aside from this, borrowers can take advantage of a lot of opportunities during the time they have. So, this is another great advantage you can enjoy if you go for this option.
Cons
Since the real estate is used as a security against default, these loans feature lower LTV rations unlike the regular loans. This ration is between 50 and 70% unlike the ration of regular loans, which is 80%. However, if you are an experienced flipper, it can be even higher.
Aside from this, the interest rates of these loans are higher as well. For subprime loans, the rate of interest can be even higher. In 2019, for instance, the rates of hard money loans were between 7.5 and 15% based on the period the loan is granted for. By contrast, the prime interest rate was only 5.25% in the same period.
Another disadvantage is that these lenders may not offer loans against owner-occupied property because of compliance rules and regulatory oversight.
Hope, now you understand what hard money loans are and the pros and cons associated with them. For more information, you can consult your mortgage broker.
AnalytIQ Group can meet your needs if you are looking to get a loan to meet your needs.
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You own a small business. Your business is just recovering from the COVID Crisis. Wow, that PPP loan sure came in handy. There are some great business opportunities out there, assuming you can find enough employees; but you’re scared. It’s been 13 years since the Great Recession. Isn’t the next stock market crash and a bad recession just around the corner? Is it safe to expand your business right now? Should you order that big machine? Should you open a new division to sell doohickies? After all, doohickies are not that much different from your current widgets. Some of your existing customers might actually be buyers of doohickies.
I say you should expand! Nothing is going on, and that is fantastic for American businesses. Left alone, and assuming they are not terrified, the owners of hundreds of thousands of small American businesses will invent new products and figure out new and cheaper ways to make widgets and whatsits. That’s the big advantage of American capitalism. Each business owner is motivated by capitalism and greed to make his business bigger and more efficient. Becoming more productive is the default mode for Americans. No communist commissar has to tell Americans what to do. We do it automatically. It’s our default mode.
Okay, George, and your point is…? Nothing is going on! And this helps by…? The lack of news is wonderful. President Xi of China is dialing back his bullying. New case of COVID are declining. We will probably never know if China was working on biological warfare and accidentally let a virus slip out, and that may actually be a good thing. No one is dragging China before the World Court, seeking trillions in damages. Nothing is happening, and that is flippin’ wonderful for business! Once again:
If left alone, and assuming they are not terrified, the owners of hundreds of thousands of small American businesses will invent new products and figure out new and cheaper ways to make widgets and whatsits.
Because the news is boring, I predict that the GDP numbers six months from now will surprise delightfully to the upside. Go expand your business.
“But George, just 45 days ago you predicted a market crash in 18 months.” In order to have our next big market crash, we need to have some some big malinvestment, like empty, see-through office buildings in 1989, dot-com stocks in 2001, and subprime mortgages in 2008. I had suggested that some enormous losses in cryptocurrencies might be the next big malinvestment, but only after a far larger bubble had been formed. Since Elon Musk popped the bitcoin bubble, I am not seeing an even larger bubble in cryptocurrencies growing.
And as I look around for other bubbles and malinvestments, I see nothing glaring and obvious. No news is not just good news. Heck, it’s fantastic news. Go expand your business!
By George Blackburne
If your small business is in need of ready working capital or you are having difficulty meeting the demands of large clients due to capital constraints, we can help. You can find out more by simply contacting us at our offices during normal business hours of operation. Once you put us to work, you could be just a few short days away from accessing the capital your business needs and deserves.
Whether you need funds now to keep your business moving in a positive direction or you’re planning for your comeback now that your business is no longer under capacity limitations, we have the perfect loan to fit your business’s needs. Check out the sample menu below to see which type of loan favors your taste the most.
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Secure a Line of Credit for your future unknowns
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No matter your business’s situation, we have the perfect loan to meet your needs. Complete an application today and your local loan consultant will reach out to you right away to discuss your options.
One of the great perks of having a dedicated loan consultant is that I’ll be with you through every step of the loan process.
Not only will this loan give you the lowest payments possible, but it also gives you the flexibility to extend your interest-only payments even further if conditions aren’t optimal after the initial term ends with our 90-Day, COVID-19 Guarantee!
Pay less when it matters with up to 5 months of low, interest-only payments
Our lowest rate starting at 10%
Loan amounts up to $450,000 with no collateral required
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Let’s Determine Your Business’s Needs, Together! Contact Taylor Today…
An Interest-Only Flex Pay Loan was built to give you up to 5 months of Interest-Only payments for the lowest payments possible! Combine this with A 90-Day COVID-19 Guarantee, which allows you to return to interest-only payments if times get tough, to have ultimate COVID-Proof Financing!
HERE ARE THE DETAILS:
With our help This program will have your company on the road to creating excellent credit so that the business can obtain loans without you the owner having to use your personal credit. clients will have access to far greater resources to source, analyze and execute transactions.More…
Don’t let the coronavirus pandemic come in and wreck everything that you’ve worked so hard for. We’re here to help. As your dedicated loan consultant, I’m ready to advise you during this difficult time and I will remain with you throughout the entire term of the loan to ensure you’re getting the help you need to make it through this.
Whether you need funds to refuel your business to keep moving forward during the slow winter months or you’re planning for your business’s Spring projects, we’ve got your back.
We are pleased to invite you to the inauguration of our new Mortgage Marketing Company, “AGC Mortgages” on January 20, 2021. We have a good team of dedicated and experienced staff and good backing. We are in a position to help arrange Commercial Mortgage Loans for individuals and companies.
These are the main features we are planning on:
On the day of inauguration we have attractive offers. Once you visit us, you will know why you should do business with us.
Looking forward to mutually rewarding business dealings.
Have a commercial loan for consideration? We’re here to help!
Heck of a year, to say the least. In the interest in brevity, let me keep it short n’ sweet. Here’s my 2021 predictions.
The Plague
The very obvious question is if there will be a negative impact on real estate because of the Covid-19/Coronavirus. Short answer, Yes. Long answer, Yes again. This especially so in the shopping center retail space. Restaurants are dependent on the residual income of an affluent society. America is an affluent society. The per capita for nearly every societal accoutrement is off the charts. The overabundance of restaurants, gyms, spas, grocery stores, and even tire repair shops pale in comparison to other societies, and even Western Democracies. Ergo, America has suddenly realized it doesn’t need as many restaurants as it thinks it needs, when you consider eating at home is more economically sane – in a time of uncertainty.
My informational sources, such as quarterly reports from Deloitte & Touché and the CCIM (Certified Commercial Investment Managers), all indicate that office space (for very obvious reasons), retail, multi-family are in for a rough patch the next 18 months to mid-2022. But for industrial and warehouse space, life is exceptional great. The need to stockpile resources and provisions for consumers is fairly apparent.
On a miscellaneous note, home sales – which is not connected to commercial real estate, but is residential real estate, is doing exceptionally well. This robust disposition is a result of many Americans with abundant resources (and job stability), that enables the purchase of homes and/or an upgraded home. This is also part-and-parcel in a fear of raising interest rates; the need for ownership, personal space and solitude; and likely a bunker mentality – wherein existentially some fear that hordes of people will desperately roam for food in a Dawn of the Dead fake realism (and from the overload of cable news) – but superficially there is no threat, but only in one’s own psyche. It’s important to keep in mind, that despite the chaos, the unemployment rate is still only 6.7% as of November 2020.
Interest Rates
As I correctly predicted last year, rates hit a new low, spurring an increase in market activity. Based on the economists’ predictions I’ve read for 2021 – because there is some dissension within their mindsets, interest rates will fluctuate back and forth, but should be about a fifth of a point lower then where they were at year end 2020. That calculates to about 2.90% for the 30 year fixed rate.
Sellers’ Market
In most localities in the US, it will be a Sellers’ market, which has an inverse relationship with demand. Meaning, when you have higher buyer demand, it will result in an increase in house prices, which will result in a Sellers’ market.
Broker Productivity
This revelation is actually dear and near to my heart, given I was previously a commercial real estate broker dating back twenty years ago before I started to buy homes on my own account. The fusion of technology for residential brokerage has been in the making for a long time and will see a more efficient – perhaps proficient as well, number of brokers emerge as the number of closed transactions is expected to increase in 2021. This is due in part as a result of technology advances. As a contrast, in 2019 the average number of sold homes per residential brokerage was 50.7 homes. In 2021, there is expected to be marked improvement on that number, with in addition the average broker taking less time to close transactions.
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A small talk with a potential investor could lead to your dream investment. But how do you approach such a conversation? You are working day and night on your startup. You got a winning team and are doing your best to develop a great product. Now all you need is to find investors. You know that what separates you from your life’s dream is one phone call. Well, there are some good news and some bad news. Starting with the good – it’s possible! The bad news is that it’s going to take, apparently, a lot of time and effort to succeed. If it took Churchill one hour to write every minute of his speech, than writing yours, which presents your startup, generates impact and willingness to hear more, will be a much difficult task. By combining several tools and one simple solution, you too can transform the most complex product or service to be exciting, simple and valuable. Let’s get started:
Set a goal for your Pitch
Before you sit down to write your pitch, set your self a clear and defined goal. This goal should include a timeframe, clarity and quantity.
What’s your end goal? Getting funded? Another meeting? Cooperation? Advice?
It needs to be even more focused. For example, you would like to get funded: how much cash do you need? When will you need it? In stages or all at once? You need to know exactly what you are going to ask for. If you don’t have a clear goal, the chance of reaching it becomes a product of luck.
After you are clear about the goal of your pitch, you can sit down to write it.
Teaser: stimulate the investor
So you got a great opportunity and you are a sitting alone in a room with your potential investor. That doesn’t necessarily mean his brain and attention is given solely to you. Your mission, right from the beginning, would be to capture his full attention and have him completely focused on you.
There are several ways to generate attention in a very short time. One of them, is to present a big fact that is relevant to your product or market. This will generates curiosity and the listener will likely try to understand what is it about. The teaser could also be a personal story, an interesting article from a newspaper, a breakthrough research, anything that will skyrocket his attention. Your teaser will work best if the value in it will be “flooded”.
“Value flooding”: what’s in it for him?
As a way to turn your product or service to fascinating, you have to ensure, that the person sitting in front of you, understands the value relevant for him. Once we can connect between the teaser and the value, we are creating a “mental shortcut” and the level of attention grows significantly.
For example, when we walk down the street and see a scratch card Ad saying “scratch now and win 1,000,000$” – the Ad both grabs our immediate attention and floods the value – we want to win those 1,000,000$.
So even if our chances of winning goes against all statistical and logical calculations, our attention was already caught because we were immediately presented (“flooded”) with the value, even before explaining the general idea or logic behind it.
Make it Simple
After we managed to grab attention, it is time to tell the story of our product or service. Here comes the real challenging part: can you really explain, sometimes in a single sentence, what does your company\product\service does? The true greatness of really good or complex products is the ability to make them simple and tangible.
Make sure not to use extremely high or too complex language, which usually creates opacity and covers the inability to generate a clear definition. If you managed to do so, in a minimized form, it will leave you with more time to invest in the other parts of your pitch.
Why you?
Towards the end of your pitch, it’s time to explain why you. Why you are the one who can turn this vision into reality. This is a critical point as you ask your potential investor for his trust (… and money).
Here is the point to emphasize your unique background in the field, winning team combination or previous successes. It is important to remember that most decisions we do are irrational, so it is imperative to use your attitude and presentation methods to strengthen your message, no less than the list of your titles or achievements.
Tip: we tend to associate self-confidence – and hence trust – when the shoulders are straight up. So straighten up!
Combining these ingredients, which builds a winning pitch, will require your time and efforts in order to sharpen your messaging. Sometime, using external consultants as well as using new technologies could upgrade your performance.
Note: apart from using the old PowerPoint, I can highly recommend Prezi and Bunkr.
Each year there are hundreds of new startups being founded, and with them grows the competition for investors. The first impression and effect you project at the beginning could be that critical point that would separate you from the rest, and will cause the investor to invest in you, over the other sea of startups.
Sometimes, this small conversation could make your life dream come true – don’t let it slip away.
For More Information On Start-Up Funding Click Here!
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We understand that completely; nobody likes paying interest, neither do we. It’s an emotional hot button for any business person when financing equipment or acquiring working capital. They feel it’s like money thrown away into thin air… or is it? Interest is the price you pay when using someone else’s money to finance something. So why not pay cash and eliminate interest? When business folks say that to me I respond with, “if you have unlimited cash or if you have enough resources that paying cash won’t jeopardize your business cash flow then go right ahead”. I never argue that point because it’s an emotional one. But the warning should be clear; paying cash for something which cripples your ability to have capital for emergencies, market changes, market opportunities or expansion is not wise. If your market changes and sales slowdown, going to your bank and borrowing capital may prove difficult; it’s not going to be easy because traditional lenders are not risk takers and lending to a downward trending business is “risky”.
Financing assets along with paying interest allows you to preserve your capital and the longevity of your business. Of course the finance payment has to make sense; it has to fit within your monthly budget and the asset should contribute in one way or another to your bottom profit line. It should make you money or save you money. The third contribution is harder to measure which can be image and goodwill; if you’re a custom interior kitchen retailer then investing in a modern showroom for your clients to see your products can be invaluable and give you a high return on your investment but again that’s a little harder to put an exact number on. In any case, the finance investment still has to be manageable within your budget.
Though nobody likes paying interest, it has to be looked upon as simply part of your return-on-investment calculation to assure you are making the best use of your new equipment addition. How to get the lowest rate? Maintain your personal FICO as high as possible and get it repaired by a service if you get into trouble, review your D&B business profile and make sure it’s accurate, if any tax liens exist then establish a payment plan and have it documented and in place which shows you’ve taken the right steps to resolve them and finally have your financial statements prepared by a service, bookkeeper or accountant which will indicate you are organized and manage your business seriously. In the long run if managed properly, the finance interest you pay will actually pay you back.
AnalytIQ Group helps small to mid-size companies lease or finance technology related equipment and special projects nationwide. Get More Infomation: Here!
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