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. Continue reading ‘Startup Company – What Are Accredited Investors and Why Should I Only Raise Money From Them?’
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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. Continue reading ‘Acquisition/Investment in Indian Companies by Foreign & Domestic Investors – Six Steps Mantra’
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There has been a recent wave of websites and TV shows about people starting their own business and following that path from bright idea and individual entrepreneur to small business start-up and then potentially to multinational, depending on the product or service. But what kind of audience are they broadcasting to? Well, it turns out a lot of us Brits want to start up our own small business. According to Business Link, over 10 million of us would like to start up our own business at some point.
So the encouragement is there and let’s face it, a lot of us like to be the boss. However, the whole process is easier said than done. The people who took part in the survey were asked what the main obstacle to starting up their own company was. Many cited financial concerns, be it the current UK financial climate or perhaps their own overdrafts, mortgages and debts. How would they cope if they started, but couldn’t generate enough initial funding to keep it going? After all, they’ve got the idea, the business plan, the desire, and maybe even a few colleagues. But how do they find the right people? Continue reading ‘Finding Investors For Your Start Up Business Ideas’
photo credit: A. www.viajar24h.com
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. Continue reading ‘How Do I Obtain Capital To Invest In My Business Start Up’
photo credit: eyeliam
Recession is often defined as a state of the economy when the gross domestic product is very low. There is a need for income earners to be able to tell the difference between recession and expansion by watching the levels of their personal incomes. Some widely-embraced market indicators are very deceiving.
Sometimes you need to look no further than the trend of your own incomes as a business owner or even an employed person. Recession needs to be differentiated from expansion for the right business decisions to be made. Continue reading ‘Differentiating Between Recession and Expansion Using Income Levels Approach’
photo credit: A. www.viajar24h.com
If you are an inventor or an entrepreneur, obtaining venture capital funding is most likely a major concern for you and your business. During the dot com boom, venture capitalists were fueling the growth, research, and ventures of many new companies. Now that the dot com boom has cooled, those worried about obtaining venture capital for business startup may have a more difficult time securing funding for their budding business.
Venture capital money can come in many different forms. There are actually companies that specialize in researching new companies to invest in, in order to earn a modest return on their investors money. These companies receive thousands of requests for funding monthly and may decide to fund one to two small start-ups a month. Some venture capital companies specialize in specific projects such as real estate or a technology based company. Many large, corporate construction projects are funded via some sort of venture capital agreement. Continue reading ‘Obtaining Venture Capital For Business Startup’
photo credit: david.orban
Running a business is not a child’s play. Moreover, managing small business bookkeeping is again a Herculean task. We all are very well aware of the fact that managing and maintaining financial records consume lots of time and personnel resources. Hence, there is one solution that can solve a problem of bookkeeping for small businesses. What is bookkeeping and how does it help in saving time and money? The answer to your query is that bookkeeping is a process that involves maintaining of records of the various transactions that have taken place throughout the year.
The functions of small business bookkeeping includes looking through the total revenue, profit, loss and expenses, dates of the transactions and various other minute financial details incurred by the company. Continue reading ‘Small Business Bookkeeping Is A Good Way To Maintain Records’
