Category: Business

Ways To Raise Money For A Business

Raising Money

When you venture into the market seeking ways to raise money, you get hundreds of people advising you on the different ways to raise and manage money. However, none of them may ever sign a check for you. There are rough and smooth times in the market. We have listed some simple ways of raising capital.

Seed Capital

The amount of money you bring in when venturing into any kind of business initiative is the seed capital. You can also take the advantage of angel investors today. There are people who are ready to fund start-up industries all over the world. However, you need to have a strong project to attract angel investors. You have to make sure that you keep up the trust reposed on you by these angel investors.

Bank Loans

Availing bank loans is the second most popular way of raising money other than bringing in one’s share of capital. In this liberalized age, you can find many banks formulating loan options for new start-up entrepreneurs to acquire machinery, working capital, etc. Some banks have plans where you do not have to provide any kind of collateral security. Searching for such options should be your priority.

Raise Funds

You can raise funds from people you know such as friends and relatives. You can also raise funds from the market. Having a viable project on hand is a pre-requisite for raising funds from the market. People will have to believe in your ability to generate profits. No one likes to invest in a loss making company. The first steps are difficult. However, if you overcome the initial hardships and prove your ability to succeed, you will never face any shortage of funds from the market.

Ways Investing in Impact Helps Business

  1. Companies that focus on impact have 12-14 times more income than those that focus only on profit. They even perform better than best practices companies in Jim Collins’ Good to Great list.
  1. You have distinctive positioning. This is especially important for crowded markets and those with established and well-regarded players. Both millennials and over-40s are drawn to companies with a higher purpose, by knowing that their purchases matter. People are increasingly willing to look at products and services not just as commodities, but as the opportunity to have a high value experience grounded in impact and the ability to contribute themselves just by supporting impact-focused companies.
  1. You attract the best people, ones that are motivated by your mission. That means an engaged workforce. People are inspired to perform above and beyond, to bring themselves more fully into their work. Fulfilling work, where we spend so much of our days, helps us have a fulfilling life.
  1. You reduce the churn of employee departures. You avoid money and knowledge lost due to increased turnover and the loss of valued employees It’s a renewing wheel where you retain valuable employees in the older age range with their wealth of experience and promising young performers too, and bring in even more engaged people into your workforce, and potentially even new customers as engaged employees become brand ambassadors.
  1. You thrive with a higher purpose. What helps you get through those challenging times is a bigger picture, a greater contribution that you are willing to make. So you move through obstacles more easily, you stay motivated to move through them, and you don’t waste a lot of time and energy wishing things were different.
  1. You avoid commoditization. For people aligned with your vision of impact, a purchase from your company becomes a moral and ethical decision, not just a cost comparison.
  1. When you don’t invest in impact, you remain trapped in the profit economy, which is dying along with the companies in it, at a faster and faster rate. A move to the impact economy, with a pivot in your company to focus on impact, helps you be sustainable.

Entrepreneurial Mind Frame

Entrepreneurs are risk takers and dreamers. The difference between the dreamer and the entrepreneur though, is that the entrepreneur takes actions based on their dreams. They persist through the hardships and never give up! Many entrepreneurs start with an idea. Their success is determined by their belief that they can create something greater than simple monetary success. Often, it is about creating something which will benefit the world.

James Dyson, for example, came up with the idea of the bagless vacuum cleaner. Despite multiple set backs, over 5000 prototypes and not being able to get any manufacturers or distributors to accept his idea, he persevered. It was over a decade after his initial idea when his concept came to fruition. Even then, it was after a lot of difficulties and hardship due to the vacuum replacement bag industry, which was worth £100 million in the UK.

In Simon Sinek’s book ‘Start With Why’, he suggests that the biggest companies in the world are so because of their “why?” – their reasons for building a business in the first place. In all cases, it wasn’t just to make money, or make technology better, or some whimsical ideology.

The Wright Brothers, for example, became known as the pioneers of the first manned flight. But their competition was much better funded and well connected – Samuel Pierpont Langley had worked at Harvard, had a number of powerful connections, including Andrew Carnegie and Alexander Graham Bell. The War Department funded his project with a $50k grant, a seemingly massive advantage to the unconnected Wright Brothers who had no money or influence. However, their passion and devotion to change the world with this new technology drove them to attain the first flight in history in 1903.

Desire for material things and monetary wealth can only carry someone so far. Unless you have a goal or passion which is bigger than that, you may lose the momentum and fail to maintain your enthusiasm for any length of time.

The entrepreneurial mindset is one which taps into your purpose. Without a purpose driven goal or aim, it can’t take long before disillusionment kicks in. With a mindset which takes into account a larger purpose, entrepreneurs can build huge businesses because they ‘saw’ a vision of what they wanted to create. If the purpose is greater than the obstacles which lie in the path of attaining it, no amount of setbacks will stop you from achieving your goal.

On the other hand, if you set out to do something and something gets in the way and stops you, your initial reason, (your “why?”), may not have been strong enough to endure all the battles along the way.

Types of Financial Fraud In Business

Asset misappropriation

Asset misappropriation is the type of fraud that involves a member of staff who uses their position to take from their employers. This fraud is often committed by those trusted to manage the interests and assets of a company, which can include board members, employees or directors.

This type of fraud activity can include theft of company formulas, patents, or sensitive data, theft of credit notes or vouchers, inventory theft, theft of money or check forgery.

Any company that suffers from asset misappropriation will experience cash flow issues in some form. Plus, it can also have a negative impact on staff morale and the company’s reputation. It is believed that over 90% of business fraud is related to asset misappropriation which makes it by far the most common issue. On average, the lost from this type of fraud is in the region of $150,000 per case.

Bribery and corruption

Bribery and corruption is the next most common issue related to fraud in a business environment. Even though this type of fraud is less common than asset misappropriation, the average cost of a bribery scheme is significantly higher, and likely to exceed over half a million dollars per case.

The type of schemes involved in this area are quite broad and can include substitution of inferior goods, manipulation of contracts, bribes to influence decision-making, shell company schemes and kickbacks.

Financial statement fraud

Financial statement fraud takes place less frequently, but is almost certainly to be the most experience per case. On average, this type of fraud can lead to a company losing up to $2 million per case. This fraud involves an entity or individual falsifying earnings or income statements in an attempt to make a financial gain for them.

Wholesale Business

Advantages

Everybody can get benefits buying wholesale products because they have a low price. It is a good procedure for smaller shops because they can save money buying items to suppliers. But not only business people can buy in bulk. The only rule to buy in bulk products is to respect certain amounts of things. The wholesalers desire to sell the huge amount of items in order to win more money and then retailers or particular can sell it at higher prices.

Dealers are more interested in purchasing in bulk because they can buy all they need to one distributor. It is really difficult when you need to buy things from different suppliers because sometimes they don’t have enough merchant. However, wholesalers ease this process that retailers can get products easily. It helps to save time and money.

People who deal with distributors have vast differences in merchandise. So, if you are interested in buying there, make sure you will have to choose among million of product.

Distributors can negotiate lower prices with the manufacturers in order to receive discounts or coupons. They can reach an agreement taking into account the number of products they are going to buy. Both get benefits of these deals because they sell more at one time and traders get products at a lower price.

Disadvantages

Since the product will not pass through the business owner, the quality and condition of the product cannot be checked. If a supplier is unreliable and irresponsible, problems might arise and may affect your business deeply.

Traders need to have a big storehouse if they want to keep their products. If they have their own warehouse it is better but if they don’t, they would have to rent it, what it means an additional cost. Warehouse are expensive and more if you don’t have one.

A distributor has to control several things: shipping, marketing, and inventory. It is an exhausting work if you don’t have help. A better option would be drop shipping because you don’t have to keep your own merchandise.

Nevertheless, it has more advantages than disadvantages. It means that wholesale is a useful and alive process that is making our lives easier. Traders have a difficult work, but distributors normally offer extra support in order to ease their labor.

Profound Insights From Impactful Entrepreneurs

  1. Look inward. We were put on this planet with gifts, talents, a perspective that no one has. It’s our obligation, our duty, to find out what that is, to do that. Loving, serving, or giving or all 3 is why we’re here.

~Prince Ea, rapper, filmmaker, speaker, activist

  1. Don’t wait. Get started. Be brave and jump. But admit when something’s not working. You’ll find a way around obstacles.

~Kate Groch, educator & changemaker

  1. Don’t see your business as separate from your spiritual life. Business plays an important part in the world today, so it’s important to recognize your ethical responsibility. How will their life be affected by your business? Positively? If you take care of that domain, if you water those roots, blossoms will emerge.

~Marianne Williamson, spiritual teacher, lecturer, author (& all-around sage)

  1. Put your creativity first. First in the day. It only takes 10 minutes a day to play with what it is that I love most to do. It may not look like anything to do with your business. It will open more magic for you than any single thing you can do.

~Katie Hendricks, conscious living and loving trainer & author

  1. I would love it if people would be able to identify people they love in their lives who they love and admire, and turn that same intensity on themselves. Bring as much admiration and open-eyed joy to yourself. Then say, now let me look around my business to see what small change could I do to effect positive change.

~Indrani Goradia, nonprofit leader dedicated to empowering women around the world

  1. In my integrity cleanse, I decided I will ask myself every time I take an action, I stop and check, what’s truest for me? I don’t just agree with people idly anymore. I only say what I think is true. That’s quite challenging! Sometimes what you have to say is not socially welcome. It does immediately begin changing your social world in a way that takes you to the people you love, and then your business becomes the people you love. It’s a poorly kept secret that people who love each other in business do better.

~Martha Beck, life coach (the original), speaker, best-selling author

  1. Two things: 1) Check your broadcast. What are you broadcasting to other people? Start with what I call the power lead. Start conversations, emails, meetings, phone calls by saying something positive and meaningful. Those sentences can set the tone for the conversation. ‘Meaningful’ creates social connection, one of the greatest predictors of long-term happiness. 2) Before you read any emails in your inbox, write a 2-minute email to someone thanking them for something they’ve done recently, why they’re important to you, praising them. It tells people they matter to you. It also communicates to your brain how robust your social support is. That alone will change the rest of your day.

~Michelle Gielan, national CBS News anchor turned positive psychology researcher

Business Invoicing Tips

If You Are on a Budget

If you are short on budget, you can go for a free invoice software application. All you need to do is make sure the app has all the features you need to put together a professional invoice. Also, avoid buying an app that has unnecessary features. Dealing with too many features will only confuse you making your job harder.

Go for a Simple Invoice Software App

The invoice software should let you format your invoice the way you want. Apart from this, the app should have some great templates as well. Good apps allow you to save your progress so you don’t have to start over in case of a system or power failure.

Set Some Rules

When you have to deal with your clients, make sure you set some rules in the first place. For instance, you may want to let your clients know the payment form, due dates and the percentage of advance payments. Besides, the terms about delayed payment should also be informed to your clients. This will help you carry out your business affairs as smoothly as possible.

Contact Details

Your contact details should be given on the invoice. This will include your email, phone number and website, just to name a few. This way your clients can get in touch with you in case they have some questions or problems to resolve. This tip will help your clients build trust in your business. Aside from this, you can get feedback from your clients and improve your product or service based on what your clients like or dislike about what you offer.

Track Your Invoices

You can track your invoice in many ways. When doing so, you don’t need to depend solely on date. The format of your invoice should contain a number that you may use for tracking the history. This method is an ideal one especially if you have a large number of clients to deal with.

Create a Back-up of your invoices

While good invoice software apps are safe to use, they can’t prevent a computer failure or malfunction. Therefore, we recommend that you create a backup of your files based on a schedule. You can use a cloud system for creating a back-up of your invoice files.

Manage Stress In Business To Succeed

Relieving Stress

First, money is important, but not everything in life. You will have to learn to take the losses in stride. It is easy for anyone to preach. Nevertheless, one can reduce stress by having an open mind. This open mind allows us to absorb the losses as part of life. If you manage to do this, you have won half the battle against stress.

Ascertain the facts

When you are suffering losses, something has gone wrong somewhere. It is advisable to ascertain the facts and analyze your mistakes with a cool head. This will enable you to plan well. When you realize your mistakes, you will not repeat them. Thus, you can find ways to beat the stress.

Identify the cause of the stress

Stress can be of two types. When you start worrying about things you are afraid of or do not wish to happen, you accumulate ‘Bad Stress’. At the same, when you stress over real issues, you experience ‘Good Stress’. Distinguish between the two stresses and prioritize your fight against stress. This will make your life easier.

Take the advice of experts

When you take the advice of others, you are simply sharing your burden. Your shoulders become light thereby enabling you to think fresh. At the same time, you get a third party perspective on things. A financial expert can suggest some beautiful ways to get away from financial stress. Taking the advice of such people is always beneficial to you in the end.

Pause and proceed

This is one of the time-tested methods of relieving stress. Taking a pause or a deep breath can help you analyze things with a cool mind. You usually end up finding the solution to your problems almost immediately. Relaxing your mind and body is essential. If possible, take a break and go for a nice holiday to recharge your batteries.

Business Coaching for Business Improvement

Business coaching, therefore, can be defined as a process that can be applied so as to move a business from its current position to where the owner envisions it to be. What a business coach does is to offer guidance and assistance to the owner in view of business growth, helping in the clarification of the business vision and how exactly it can fit well with the personal goals. This is a very important step and should be a point of focus.

Business owners should be made to understand the importance of reaching their goals for the business and how it can affect them personally. The business owner is responsible for the determination of the passion and speed in which goals are met. When the business owner has a passion for reaching a goal, he will be more determined to make it work by all means.

Usually, a coach will get to know the business owner desires and this helps in the prioritization of the goals and strategies that need to be put in place. It is the work of the coach to meet you with the owner on a regular basis so as to ensure they remain on track to all commitments that they may have made.

Accountability is a critical component of business coaching. It is important to understand that a business coach isn’t a consultant. This means that they don’t work for the business. The main aim is to help you with focus and keep on reminding you the importance of reaching the set goals. They also work to motivate the business owner to actually keep the commitments. They are the sounding board and can even hold a mirror so as to reflect all the blind spots that you may have missed.

Most of the success stories that you may have heard attributed it to amazing business coaches. For business owners who seek to have more time, more money and better relationships and health, it becomes important to have a business coach. The reason why the most business fails is that people are not really taught about ways in which they can actually win at life. Coaching, therefore, bridges the gap and enlightens the business owners in ways that only a coach can achieve.

It is the dream of every business owner to have a winning team around them. Also, anyone in business desires to have great profits in an effortless and exponential way. A winning business allows you to have time and money freedom. If you feel that you need to rethink your commitments and focus on the goals you had initially set out for your business, then getting a great business coach can actually help you and your business to a great extent.

Passion and Business

Passion, then, is the key ingredient between throwing in the towel, or getting up to fight the next round. There is a refining moment where every business owner goes through intense heat. This heat can either polish you or finish you completely but it all depends on the level of passion in the business.

To always keep your goals ahead of you is tough when everything is bursting at the seams. This is why asking questions is a survival skill.

“Why am I doing this? What works? What doesn’t? What can I do better?”

These questions tackle the level of passion you are carrying for the business. Sometimes, answering these questions may make you revisit exactly how you ended up in that business. This in turn focuses on your motivators. They are the little coals that keep your passion alive. They make going through the grime seem worthwhile even though the outlook seems bleak. As long as you keep asking these questions, you automatically take your mind to your motivators. That’s why challenges really should never worry you, but dwindling passion should ring alarm bells!

So, when passion starts to dwindle, simply repeat the questions, “Why am I doing this? What works? What doesn’t work? What can I do better?”

Once you have your mind on your motivators, the dying passion will be revived once again.

Why am I doing this? It’s the path towards achieving goal X, Y, Z…

What works? So far, what have I achieved? Am I still on my way there?

What doesn’t work? What has derailed me on this course? Is what I’m doing still viable? If I change course, what will still take me to goal X, Y, Z…?

What can I do better? What hasn’t stalled but isn’t performing well either? How can I affect the rate of growth? Do I really need more money? Can I do it differently? Can I borrow a strategy? Who has done this and it’s working for them?

When stalling, don’t resign. Ask. What you fear will always paralyze you. Once you question its power, you have a fighting chance left. Always ask.

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