Category Archives: Operating Internationally

Startup Company – What Are Accredited Investors and Why Should I Only Raise Money From Them?

Posted by on October 27, 2009 Comments Off

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Creative Commons License photo credit: B.O.G.D.A.N.Question:

I’m an entrepreneur and have finished my business plan. I’m getting ready to raise $2 million for my startup real estate company – but a friend of mine said I should only talk to accredited investors. I’m not exactly sure what an accredited investor is and I don’t understand why I can’t talk to anybody I want to about investing in my company?

Answer:

The term, accredited investors, has to do with securities laws – both federal and state – and making sure you comply with the very onerous restrictions that go with the fundraising for your start up company. I’ll give you both the short and long answer to what an accredited investor is in a minute. But the first thing you need to know is that if you raising capital from angel (AKA private) investors, you will almost certainly need more than just a business plan. You need what’s known as a Reg D Private Placement Memorandum – PPM – in order to comply with federal and state securities laws. Read more »

Tips For Businessmen Seeking a New Business in Foreign Country

Posted by on March 28, 2009 Comments Off

Are you the one who seek to start a business in foreign country but have no ideas what to do first?

Before you kick off your new business in foreign country, you need to know the market. Your prospects in your target country are the main key of your business, and you need to cater to their needs according to their requirements. It is always wise to study the market first, and identify the existing need of your prospective customers.

Generally, doing business in foreign countries requires an understanding of the market environment, including factors influencing consumer lifestyle choices. Analyzing the market environment will be the first step to determine the likelihood of success for the new business. Read more »

Taking Your Business International

Posted by on February 20, 2009 Comments Off

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Q: I’m interested in doing business internationally. I have done some reading on the subject, but there is an awful lot to digest. Have you had any experience in this matter and can you suggest the best way to get started?
– P. Granger.

A: Great question, Mr. Granger, though not one I’m personally qualified to answer since I have not had direct experience with international sales. So like any good columnist without a clue I can either make up something and hope it sounds semi-intelligent or I can consult someone who really is an expert on international sales and let him answer your question. Since my agreement with The Times prevents me from fabricating anything other than my true age (I’m 29), let’s go with the latter.

I called on Jose Rodriguez, President of RISMED Oncology Systems, a Huntsville company that provides high medical technology to radiotherapy professionals around the globe, to get his input on the subject. Jose is an old friend and client and if anyone can give pointers on doing business internationally, Jose is the man. Read more »

Acquisition/Investment in Indian Companies by Foreign & Domestic Investors – Six Steps Mantra

Posted by on February 11, 2009 Comments Off

Kamal Nath
Creative Commons License photo credit: apesphere

Acquisition/Investment in Indian Companies by Foreign & Domestic Investors – Six Steps Mantra

Joint ventures, strategic alliances and acquisitions are the flavor of the day that enable fast growth focused companies to have rapid inorganic growth and expansion in new sectors. However, prior to engaging in a joint venture relationship or acquisition of an operating Indian company (“Investee company”), either by way of private placement, or secondary market, or subscription of substantial equity share capital, it is advisable for the Investor to carefully and stringently undertake the following six step mantra to avoid future surprises and heartburns:

(i) Due Diligence/Operations Audit: Extensive legal and financial due diligence of the Investee company is advisable to assess Investee company’s track record in compliance with Indian laws, statutory obligations and regulations applicable to it. The due diligence exercise (which usually takes between three (3) to four (4) weeks depending on availability of documents) not only enables the Investor to assess potential liabilities, evaluate unknown and potential, disclosed or undisclosed liabilities but also enables the Investor to assess the feasibility and viability of the proposed acquisition and rationalize enterprise valuation. If required, Investor can demand creation of an escrow account for safe deposit of a part of the acquisition cost, parked for an agreed period to mitigate against any future liabilities of the Investee company. Read more »

How Do I Obtain Capital To Invest In My Business Start Up

Posted by on February 11, 2009 Comments Off

Hong Kong (www.viajar24h.com)-193
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You’ll almost certainly need to raise money to start up your company, unless you already have sufficient capital yourself. The typical costs of starting up are in obtaining premises, manufacturing your product if you have one, buying materials, stock or equipment, marketing and fees for external consultancy such as legal help, accountancy etc. Then when you’re off the ground, you’ll need working capital to keep you afloat in the gaps between paying your own invoices and receiving payment from customer invoices.

Again, your business plan is essential at this stage of setting up your business. In it you will already have scoped out what your money needs are and how you plan to raise the capital, and you’ll be using it to persuade potential investors and lenders of the benefits of funding your company. Your financial calculations in your business plan therefore need to be thorough and accurate and presented with confidence.

Everyone expects that they’ll be able to stick to their plans and only need to borrow the absolute minimum, but more often than not something unexpected crops up to throw a spanner in the works. Read more »

The Economic Meltdown You Are Not Hearing About

Posted by on February 11, 2009 Comments Off

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Creative Commons License photo credit: A. www.viajar24h.comThe number one issue on the plate for nearly everyone is the economic meltdown that occurred in 2008 and is carrying through to 2009. Although we here bad news in the media, most don’t describe the really ugly things occurring.

The Banks

2008 was a bad year for banks. Given what you hear on the news, most of us would think things were calming down. They are not. If anything, they are worse. For instance, are you area that regional banks are failing at a rate of more than one a week? How about the fact the federal government cranked $165 billion dollars into the 8 biggest American banks, but they still lost $418 billion in value? The latest estimates place the total capitalization of all banks in the US at 1.8 trillion dollars. That’s not bad until you realize the latest estimate of bad debt in the industry is 3.6 trillion dollars. Read more »

International Impacts on a Business Plan

Posted by on January 27, 2009 Comments Off

Percival Landing
Creative Commons License photo credit: Berd Whitlock

International business plans require additional study compared to domestic ones. These require additional expense and time to resolve. Here we will discuss four critical ones for a business plan.

First, we must decide on the business structure. Countries have favorite structures that evolve slowly. When considering international companies, different structures might be required. Typically, the type of business structure must be discussed with a business consultant in the country itself. This will most often be a lawyer from that country. It’s possible that a lawyer in your home country would know the laws of another, but it’s not very common. Read more »

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