Tag: finance Page 2 of 3

Cities To Seek Investors

On March 6, 2019

Global city investment profiles vary from country to country and from city to city. Entrepreneurs targeting establishing business startups should look for the right investment ecosystem where their entrepreneurial creations and ideas can be easily realized. For such aspiring entrepreneurs, establishing contacts with investors who can finance their businesses is an important part of the process of setting of the entrepreneurial career. In such cases, business networking platforms are highly important as they give an entrepreneur an opportunity to meet investors with different aspirations, missions, and visions. Here are some of the global cities where entrepreneurs can find enthusiastic investors.

New York City

The city of New York is abuzz with capital. It hosts investors with high capital power and is home to some of the fastest growing companies. New York is also home to some of the important technologies that can help power up entrepreneurship. Investors enthusiastic to put their money into new inventions are therefore in plenty in New York.

San Francisco

The city of San Francisco is home to Silicon Valley, one of America’s richest conglomerations of entrepreneurs and investors. San Francisco attracts a rich wealth of ecosystem of entrepreneurs and investors. In particular, the city provides aspiring entrepreneurs who have new visions for revolutionary ideas the opportunity to meet potential investors.

London

According to City Lab and Pitchbook, London is ranked as the 8th most venture capital city around the world. London’s investment and startup spirit are therefore quite high in ways that have attracted new investors who have a liking for technological startups.

Santiago

The city of Santiago in Chile is famed for being home to startups that are otherwise backed by the government and the private sector. Investors partner with the government to provide funding for accelerator programs that power up award-winning inventions. An aspiring entrepreneur will, therefore, find Santiago highly suitable for pitching their tent in search of the otherwise readily available capital.

Beijing

Beijing in China has become China’s important tech zone where aspiring inventors get an opportunity to attract investors. Beijing, home to thousands of tech establishments, is also home to Asia’s technology revolution and regularly hosts thousands of entrepreneurs who showcase their creations in search for funding. The city is also home to aspiring investors, not only from China but also from Asia and other parts of the world including the US.

Strategies to Yield the Highest ROI’s

By Tom Leydiker

On February 5, 2019

In Blog, Entrepreneurship, Finance

Yielding high returns on investment is every business owner’s dream. To get a good return on a business investment, the business owner must implement the right strategies. In addition to having a good business plan and implementing it effectively, business owners need to undertake certain practices and strategies to yield the highest return on investment as hereby outlined.

Hiring the Right Workers

Workforce in a business is one of the biggest resources that should be rightly utilized. The business owner must, therefore, hire the most talented and dedicated workers who share in the company or the business’s vision and mission. Investing in hiring the right persons qualified for different tasks within the business gives the business owner a good foundation upon which to pursue the realization of high return on investment.

Training Workers

Training workers on the specific tasks they need to undertake within the business gives the business owner the capacity to achieve the highest possible return on investment. The training should be customized to individual workers’ tasks and should be progressively done from time to time to equip their workers with essential competent skills.

Diversifying Investments

Irrespective of the area on investment that a business has ventured into, the business owner should come up with additional investments that offer quick and high returns on investments. Investment avenues such as the stock markets and dividend-paying stocks are an effective strategy that a business owner can utilize to maximize on return-on-investment. Proper research, however, should be conducted before making such an investment diversification move to avert potential losses.

Evaluating Risks

In businesses, risk-taking is an essential part and parcel of day-to-day operations. As a business owner, understanding the various risks that the business faces is an important strategy that helps in contingency planning. Risk evaluation gives the business owner the ability to minimize such risks that would otherwise minimize return on investment.

Giving Employees Benefits and Incentives

To maximize on the dedication and workforce resource utilization, business owners must think outside the box on ways they can utilize to motivate employees. Offering incentives and benefits is a great way of motivating workers to deliver optimal results for the business. Incentives and benefits such as health insurance covers, paid vacations, flexible workplace policies, and performance-based appraisal system helps motivate workers to work hard.

Franchising Your Business

By Tom Leydiker

On January 4, 2019

In Blog, Entrepreneurship, Finance

Once a business has a certain process that’s working and it is producing a consistent profit, an owner may want to think about replicating the process by franchising the business and opening it up to new owners. Here are five factors that a company will want to look at when deciding if they should create a franchise:

Is The Concept Viable?

A good franchise concept will have two qualities. It will offer something that is familiar, but it will come with a unique twist. An excellent example of this is a pizza company that only offers organic ingredients and delivers their product via hybrid-electric vehicles. The concept must appeal to prospective franchisees and consumers. Also, the business should be able to be replicated so that funding more of them would create an increase in profits and economies of scale.

Hire A Lawyer

When a business owner is going through the franchising process, it’s important to hire an attorney who can give expert advice on the transition. They’ll be able to help with the forms that need to be completed such as a Franchise Disclosure Document. An attorney will also be able to assist with pricing, intellectual property protection and the creation of a franchise agreement.

Will Cloning Work?

To really be sure that a business should be franchised, it’s usually best to create one or more clones and see if they are successful in other areas. If the cloned units are a success, it probably makes sense to move ahead with plans to franchise the business.

Be Selective

There are many individuals who may have the capital to pay the price that allows them to get involved with a franchise. However, it’s important for the owner of the franchise to be selective when choosing franchisees. This ensures that the right people are selected so that both the franchise owner and franchisees are successful. The owner of a franchise should always consider new franchisees as ambassadors of their brand. They must be a good fit. An interview process should be used to help determine the best candidates.

Location Location Location

One of the most important factors for the success of a franchise is where it is located. It’s best if the first couple of locations are kept close to the original business. However, they shouldn’t be so close that they’ll hurt the sales of the first location. By having the first franchise operations close, it will be easier to manage logistics.

Attracting The Right Set Of Investors

By Tom Leydiker

On November 26, 2018

In Blog, Finance

When a person is able to find a good investor for their startup, it will help them get off to a good start. Knowing how to pitch and attract investors will ensure that they find the right match. Here are five tips that will help an individual give a strong pitch to an investor:

Short And SweetInn

Often, the best ideas are the simple ones. When a person is creating their pitch, it should be short and sweet. Of course, their products or services need to be innovative as well.

It’s best to stay away from technical details when a first pitch is given. Typically, an investor will have experience in the space and quickly understand the significance of the proposition being made. It’s also best to keep minor details about the company private before an investor decides to sign on.

Telling A Story

Storytelling is one of the best ways to pitch to an investor. People love stories, and they’ve been successfully used for thousands of years to pique people’s interest and get them emotionally involved.

The key is to make a story enjoyable and not too convoluted. A person can use the story to help make them more likable, which can help build trust.

Utilize Philanthropy

In many cases, investors have been involved in some type of entrepreneurial role in their business life, and typically, entrepreneurs are more likely to donate to charities.

It feels great when a person is charitable, and it makes them look good. By aligning a business plan with some type of charity during the initial stages of a business, it sets up the possibility of networking with investors who view giving to charity as a positive thing to do.

Use Confidence And Practice

When a person acts confident when they’re giving a pitch, it’s going to help an investor see them as someone who is sure of themselves. This helps create trust and confidence in an investor.

It will probably take time for a beginner to find the correct balance of aggressiveness. They definitely don’t want to come off as someone who is desperate.

Sealing The Final Deal
Once a person has given their pitch and become established as a trustworthy and accessible individual, it may help if they can prove that it works. If an investor sees that their service or product is actually viable, it should help the investor make a decision.

Saving For The Future

By Tom Leydiker

On September 17, 2018

In Blog, Debt, Finance

It is important to save money at any point in your life. Life can be unpredictable, and everyone should prepare for the unexpected to some degree. Establishing a kind of financial “cushion” is a great way to help yourself from financial downfall in the unpredictable future. Saving money for future plans is essential for retirement, vacation, school, and anything else you can think of. This article will give you a few you can prepare and start saving for your future.

Establish Goals

The very first step is to establish your goals. Take a look at your current financial situation and set a realistic goal for yourself that you will be able to reach. Break down the goal into smaller digestible pieces that you can work on every day. Setting an overarching goal for yourself can be intimidating, but once it is broken down into smaller daily tasks that you can complete, the overall goal does not seem so daunting.

Spontaneity

Individuals who set financial goals for themselves find it difficult or unbearable to bind themselves to strict budgets. One aspect of your budget should be used just for spontaneous events that may come up during the week. Considering that last minute plans happen, it is a great idea to have a set amount of money that you can spend either each day or each week to help you stay on your budget. You will be less likely to falter on your budget if you have already budgeting frivolous spending!

Save First

The very first thing you should do when you get paid is to put money away towards your goal. You can decide whether you should manually put away the fixed amount or have it automatically taken out of your paycheck, so you never see the money in the first place. Whichever method you decide to choose, paying yourself first is the most important key to planning for your financial future.

Consider putting one-time payments such as tax returns, bonuses, or raises into your savings account. If you can function well with your current cash flow, then you have the opportunity to save even more with the added cash flow that comes from raises, bonuses, and tax returns.

If you are comfortable with the idea of investing your money, it is a great way to potentially earn more money for your financial goal and future. As with any investing, there is a varying amount of risk involved. Look into ways that you can intelligently invest your money to ensure the best returns!

Tips To Avoid Financial Woes

By Tom Leydiker

On March 20, 2018

In Blog, Debt, Entrepreneurship, Finance, personal

At some point in your life, you may fall under hard financial times. This happens to many people and does not mean the end of the world for your bank account or credit score. There are ways to come back from financial hardship and be prepared to avoid them in the future. This article will talk about some common financial woes and how to avoid them.

Create a Budget

Most people think they have a good understanding of where their money goes. Taking a closer look at your monthly spending may surprise you. Where your money is going may not match up to what you thought you were spending. A good way to avoid financial hardships and even dig yourself out of one is to set a budget for yourself. Take your monthly analysis of your spending and formulate a budget that will keep you in the green each month. Make sure your budget is tangible. Try not to guess at what you spend on certain items, be precise and you will be more likely to stick to your budget.

Impulse Buying

A common mistake among consumers is to purchase something on impulse. If you come across an item and immediately think “I need to have this!” Take a step back and evaluate the reasoning behind the purchase. Is this going to get me to my financial goals? Is this item necessary for me to buy? These questions will help control your impulses and ultimately keep you connected with your budget. If after a month you are still yearning for that item then save up enough money to get it for yourself.

Alternatives To Spending

Instead of going out to a fancy bar or restaurant, aim for a day packed with homemade sandwiches and a hike near your local trail. Any alternative you can find to spending money on miscellaneous things like a bar or restaurant should be pursued to help you save money and maybe even find your new favorite activity.

Medical Insurance

Nothing can help you dampen the blow of a medical emergency like medical insurance can. Without insurance, you are at risk of paying high fees for medical procedures that can plunge you into financial hardship for a long time. Medical emergencies are unpredictable, and it is better to be insured no matter your financial situation to avoid destroying your financial credibility for good.

What To Look For In A Financial Advisor

By Tom Leydiker

On March 2, 2018

In Blog, Entrepreneurship, Finance, personal

Finding a financial advisor is an important task in anyone’s life. Your financial advisor will walk you through your financial goals and then formulate a plan to help you reach them. Before you make a decision on who your financial advisor will be, consider the points listed in this article to ensure you are making the right choice.

Experience and Education

When looking for a financial advisor consider what kind of qualifications they have. Look for a Certified Financial Planner (CFP) before making your decision. Conduct an online search for your potential financial advisor and refer to any and all articles and websites about them. Follow up on previous or current clients to gather more information about their practices. It is one thing to state that a financial advisor has the proper qualifications but if they cannot correctly apply good methods than it is not worth the investment.

Pay Structure

The way a financial advisor sets up their payment structure speaks to their intentions in being your financial advisor. There are a few ways advisors can set up their payment structure. One way is commission based. Commission based advisors could be biased about what kind of investments you should consider because they are ultimately getting a cut of that investment. This could lead to investments that may not be working towards your financial goals. Another payment structure is fee-based. A fee-based advisor could give you advice that will benefit them in the long-run causing you to potentially stray away from your financial goals. Consider a financial advisor who charges by the hour. An hourly payment structure does not allow the advisor to be biased towards any financial decisions.

Contact

Make sure you understand how often you and your financial advisor will be meeting. Some advisors will have an initial meeting then only have scheduled meetings once a year from then on. If you are new to having a financial advisor, recommend that you and your advisor meet quarterly or more often than that if needed.

Outcome

You want to find a financial advisor who will point you in the right direction to achieve your goals. Eventually, you should be armed with enough knowledge to take over the reigns and conduct your own financial plan. Avoid getting stuck with an advisor who suggests that you need to stay with them to reach your goals. That kind of financial advisor may not have your best interests at heart.

Avoid These Things That Can Harm Your Credit Score

By Tom Leydiker

On February 26, 2018

In Blog, Debt, Finance

Your credit score is incredibly important when it comes to making any big purchases. If you are thinking about purchasing a car or your first home, then banks are going to look into your credit score to determine what kind of loan you will receive. There is plenty of information on how to keep a good credit score, but it is equally as important to know what will drive your credit score down.

Missing Payments

Your payment history accounts for thirty-five percent of your credit score. Missing a payment over thirty days could drop your credit score one hundred points. Credit card companies may not report a late payment until sixty days after it is due. By the sixty day mark, your credit score may have suffered severe damage. Set reminders for yourself about when payments are due on your credit card. Never miss a payment, and your credit score will be just fine.

Cancelling Credit Cards

If you have a credit card that you do not use anymore, do not cancel it. Cancelling a credit card with a zero balance eliminates all the credit history you have associated with that card. Say you have had a credit card for four years and then cancel it one day. Those four years of purchasing items on that credit card disappear, making your credit history seem shorter than it actually is. Keep your old credit cards open to showcase your extensive credit history!

Collections

When a payment is overdue for an extended period of time, credit card companies will either sell or hire a third party to collect the payment. A collection usually occurs after six months of no payments. A collection can drastically reduce your credit score by one hundred points, sometimes more. A collection can stay in your credit history for up to seven years, affecting any future purchases or loans you apply for.

Settling Debt

If you settle a debt with a creditor and it is less than the amount you originally owed this can dramatically affect your credit score. People who have settles a debt with a creditor saw drops in their score ranging from forty-five to one hundred points.

Bankruptcy

Declaring bankruptcy has the most detrimental effect on your credit score. Filing for bankruptcy can stay on your credit report for almost ten years. A credit score can suffer up to a two hundred and forty point reduction from declaring bankruptcy.

Why Corporate Philanthropy is Important

By Tom Leydiker

On December 11, 2017

In Blog, Entrepreneurship, Finance

Why Corporate Philanthropy Is Important Tom Leydiker

Corporate philanthropy has become the norm in today’s businesses. There are several well-known companies who have made it their mission to give back to people whenever a customer buys from them. TOMS is an excellent example of a company that does this. There are significant benefits to why corporations should give back to their community.

Public Perspective

Besides the fact that giving back is morally right, the efforts put forth by a company to do so makes them look good to customers. Customers gravitate towards companies that take the initiative to help other people. Long-lasting and potential customers will pass along the good word of your business if they see you are taking steps to help others. Your efforts will give you a competitive edge over your competition. Companies who do not participate in corporate philanthropy generally see fewer customers compared to companies that do participate. Ensure that you are giving back for the right reasons and not just for financial gain or customers will look past it and disregard any efforts going forward.

Company Morale

Companies who participate in corporate philanthropy typically see a boost in company morale. Employees who value philanthropy on the personal level will appreciate and respect you for giving back. Even for employees who have no interest in philanthropy could bond with their coworkers over volunteer events. On either side of the spectrum for employees will benefit from this kind of philanthropy. The improvement of morale and relationships in the office could have a direct impact on productivity. An increase of teamwork and cooperation could be a direct link to volunteer outings and community service.

Community Benefits

The type of philanthropy you participate in matters. Whether its locally or globally, philanthropy helps people have acc3ess to things that they usually would not have the ability to have. Local philanthropy could benefit a company in a variety of ways. If your local philanthropic efforts include giving money to schools, then you could potentially receive direct feedback in innovation. Research institutions could conduct studies to help benefit your organization. Giving back to schools gives you a direct line into recruiting knowledgeable students from that university for your company.

Corporate philanthropy benefits a wide array of people. As a company, you should consider ways to give back to your community. This effort will help you with customers, employees, and appease a sense of fulfillment which otherwise would have been left unoccupied.

What You Need To Know About The Stock Market In Order To Make Money

By Tom Leydiker

On November 16, 2017

In Blog, Finance

tom leydiker what you need to know blog header

Investing in the stock market might seem scary, especially watching movies like Wolf of Wall Street.

However, the world of investing isn’t actually that terrifying and can, in fact, be an effective way to set yourself up for a comfortable financial future. Yet younger Americans are not investing as much as older generations. Waiting to invest is a pretty poor money move.

While investing can be a risky game, it isn’t nearly as complicated as one would think. Here is what you should know if you want to make money off of stocks:

Think about your timeline.

The longer you wait to save and invest, the more you’re going to lose, and the less you’re going to make. Making money in the stock market is all about maximizing the benefit of compound interest. The trick is to keep saving and investing. The more time your money has to grow, the more you’ll have at the end of the day.

Think about how much you’re investing.

The amount you earn is partially based on how much you end up investing. You don’t have to invest a lot to earn a lot. It’s simple enough to start by contributing as little as 5 percent into a 401(k) or IRA. If you’re concerned that you’ll lose your money if you do end up investing, then fret not. NerdWallet recently released an analysis of 40 years of historical returns, and discovered something pretty interesting: stock market investors had over a 99 percent chance of maintaining at least of their initial investment, the same as a traditional savings account.

Think about the return rate.

Investors had a 95 percent chance of earning nearly 3x your initial investment, compared to a less than 3 percent chance of tripling your investment as a traditional saver. While these are some pretty nice-looking odds, the ultimate rate of your money growing is out of your control. As long as your investment outpaces inflation, you’ll do well. That’s not going to happen if your money is in a bank account with low interest rates.

Think about diversity.

Putting all of your eggs in one basket is seldom a good idea, particularly in the world of the stock market. While buying a lot of stock from Blockbuster made good business sense 20 years ago, you’d be kicking yourself now. To make sure that something like this doesn’t happen to you, invest across different types of companies, industries, and companies. Start by investing in a low-cost index fund that diversifies for you, or robo-advisors that use algorithms to build and manage your portfolio.