Category: Business


Importance of investing in business

Investing in the right business means high and consistent returns.In a good business returns are higher than investing in real estate and socks at times.Buying a business that is already operational saves you time.

Advantages and disadvantages of buying a business

Buying an established business rather than setting up a new business has many advantages but is not without risk. You will need to know the advantages and disadvantages of buying an existing business and be clear about your ability to run a business.

Advantages of buying a business

Buying a business is generally considered less risky than starting your own business, especially if you can buy a well-managed, profitable business for the right price. Consider these advantages:

  • The difficult start-up work has already been done. The business should have plans and procedures in place.
  • Buying an established business means immediate cash flow.
  • The business will have a financial history, which gives you an idea of what to expect and can make it easier to secure loans and attract investors.
  • You will acquire existing customers, contacts, goodwill, suppliers, staff, plant, equipment and stock.
  • A market for your product or service is already established.
  • Existing employees and managers will have experience they can share.

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Investing in aggressive companies is better because,this companies diversify their products,thus spreading risk,to survive during hard times or when one product fails.

The Advantages Of Investing In Aggressive Companies

We often hear about the importance of picking a company by means of quantitative analysis, which attempts to value companies mathematically by examining their balance sheets and financial ratios. However, qualitative analysis, which involves looking at intangible elements of companies or their personalities, is also a good way to evaluate the superiority of an investment. Surprisingly, some of the traits of companies with an edge on survival mirror the dispositions of nature’s deadliest predators: the shark and the bear.

Trait One – Consume to Live, Live to Consume
Sharks have a tendency to go for the kill at every opportunity, which is advantageous to them over the long run. You want to find a company that has the same eternal willingness to hunt for sustenance – more specifically, revenues and profits. Whether attacking other companies’ profits with mergers and acquisitions or chewing out chunks of other markets to expand and grow, a company is attractive if it is tracking in on fresh areas of profit, just like Jaws hones in on unsuspecting teenagers.

Be cautious, however, of fake sharks or companies that exhibit false aggression and hunger. These companies were most prevalent during the 70s and 80s, when takeovers and mergers reigned supreme. When faced with floundering fortunes, the fake shark would collect zombies (insolvent companies) or firms that offered no competitive advantage. Therefore, even though these acquiring companies appeared to be growing, they were actually clinging onto the edges of an early grave.

Remember, real sharks follow the scent of fresh blood; they never scavenge for rotten meat. Thus, you should be looking at companies whose takeovers and mergers are strategic improvements.

Trait Two – Fierce Competition Among the Offspring
Some types of sharks have been known to reproduce by means of ‘uterine cannibalism.’ What happens is that when these female sharks give birth, their offspring must, before leaving the womb, fight and kill its unborn siblings. As a result, the emerging newborn sharks are undoubtedly tough and no longer need anything from their mothers.

When looking for investments, you may want to consider companies that procreate like these sharks. When deciding to go ahead on the creation of subsidiaries or capital projects, you want your company to foster projects that, like the cannibalistic newborn sharks, have passed stringent internal tests, proving the ability to thrive better in the short and long term.

Many companies test the viability of a project by means of the net present value (NPV) method, which looks at a project’s future cash flows and subtracts its costs. Although projects that have a positive NPV suggest profitability, you want to pick companies that look beyond a positive number by setting a target profitability. A company that tackles multiple “revolutionary” projects at once may look flashy and innovative, but it may not have the resources to devote enough commitment to any one project. The lack of new projects may be seen as stagnation, but a slower creative process can also mean that the company is extremely thorough when filtering ideas.

Trait Three – Eat Everything
A company that depends heavily on one product, is opening itself up for eventual starvation should the demand for the product drop or a famine strike the supply. It’s better for a company to be like a bear, which can eat and digest almost anything and diversify its diet to help lessen the impact of any one unforeseen disaster. This is also why the individual investor should diversify and rebalance his or her portfolio. A company that spreads its interests into different areas assures itself and its shareholders a fighting chance at surviving the hard times.

An example of a company that is like the real bear is General Electric, which honed in on an industry that rallied when GE’s industries suffered. Venturing into building plane engines when the energy crises and the cold war were eating into GE’s other revenue areas, GE successfully found new areas of profit.

Trait Four – Save up Fat for a Cold Winter
A bear will eat itself into a happy obesity (up to 800 pounds) during the good times, gaining an average of 4.5 pounds a day. These reserves will get the massive animal through the winter, when the bear can lose up to 30% of its body weight. While you don’t want a company that sleeps during the winters, you do want one that prepares for tough times. A company should have fat enough cash reserves to adjust to changes in the market climate without starving.

Some notable companies that are known for keeping large cash reserves include Microsoft and Berkshire Hathaway. If you see a great company without any kind of cash reserves, you don’t necessarily have to run from it, but remember that if its industry takes a hit, it’ll die off much quicker than a fat company.

The Bottom Line
Next time you analyze a company, you may want to observe its behaviors and survival tactics. A company sharing the traits of the shark and the bear will be at the top of its financial food chain.

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Can A Car Donation Help Your Charity?

Prior to picking the charity for contributing your vehicle, you must discover the efficiency score of the charitable organization. The efficiency ranking will tell you their capability and capacity.

If the ranking is high, it indicates, the larger portion of your donation will in truth go to the people who truly require it. On the other hand, if the score is low, it suggests that the charity utilizes more money on administration
purposes rather than helping out people in need.

If a charity has an effectiveness score of 90%, it means, 90 cents of every dollar you contribute will go directly to the individuals who really need it. The remainder will be used to cover all administrative expenses. In truth, a ratio
of 85% or higher suggests that the charity is doing an excellent job in handling all donations. Less than 85% means, it means the charity is either badly handled or is not so legitimate.

A lot of non-governmental and charitable organizations agree to take car contributions so that they can make money for the services and programs they use within their local community. On the other hand, the primary inspiration from your
side is to assist your local community. If your money is not invested for the improvement of the community, then why would you donate in the first place?

There are thousands of vehicle donation programs readily available in the nation. Some of them include; regional non-profit radio,
Television and Newspapers, and some with humanitarian causes. Additionally, numerous Charities and shelters utilize the vehicles that were donated for transportation to work, doctor consultations, school, etc.

You need to learn other related details about your charity of choice before coming to make your final decision. Remember, the higher its performance ranking, the greater you are adding to your local community.

Its important to remember that just because a car is being donated that doesnt necessarily mean big dollars for the selected charity. Reason being is the actual value of the car in question must be determined first. If it is determined
to be of a solid value, then the charity can get excited.

However, if it is determined to be of sub-par value, then not much of a celebration will be had. The sub-par car donation might even be more work than it is worth and at the end of the day may even yield a negative profit so it is important
to do a thorough examination of the vehicle.

A charity might even be lucky enough to have a classic car donated to it that is worth quite a bit of money. That can go a long way in helping towards reaching its goals for that particular year and helping their local community.

Classic car donations are not the norm and should not be expected but when they are donated it would be cause for a huge celebration. Cars of decent value are more along the lines of expected but still help greatly in helping charities
reach their goals within the year.


Pet Sitting Software Solution – How You Can Get A Free Pet Sitting Software

There are lots of people who do not such as the companies they receive from experts they do unknown as well as that do not recognize your pets. Animal seateding businesses have the tendency to be costly and naturally anonymous merely by the method they are arranged. making money. If you resemble me I make sure you would certainly choose to have friends who know your family pets come by as well as pet dog sit or take your animals to their houses when your away check here .

Pet sitting business exchange principle is new and really basic. If you love animals and also can pet dog rest for others after that you could locate pet sitters who will certainly sit for you and also your family pets in exchange. I am using the net to create an online discussion forum in a data source that simply attaches everyone that needs solutions as well as are likewise eager to provide those services in exchange. Its like a Yahoo group with the included ability to see who remains in a location by searching individuals accounts. If you browse by your area codes and also discover brand-new people with animals like your own that are willing to animal sit for you while you are away, you merely discovered a suitable set of individuals that could pet seated for each various other. They could seated for you and your family pets and you can do the same for them when they are away. There are thousand of individuals doing this so its catching on and becoming much simpler to find that select group of people you have to help you when you have to leave your pets at house.

This brand-new FREE community concept is not a business yet it is saving individuals bunches of money and great deals of fear. One of the initial instances of searchable databases is a pet community job developed as well as held by The objective of this service is to aid people discover pet caretakers for their pets also in locations where there are no industrial companies available. If you have a look you could be amazed that is currently there. Talk to other members that are additionally looking for exchange companies in your location. Your email is maintained hidden when your messages are forwarded. It is Free Private as well as Secure, and also it REALLY works!

One of the troubles come across by family pet fans on the net is likewise a problem with this type of company. The issue is the fear of animal abuse that has actually lead to self appointed regulators who make it impossible to used locations like Craigslist to find pet dogs as well as pet services. Market on Craigslist for a bunny and experience the rage of the pet dog cops that also utilize their very own site to quickly flag you ads and also make certain you cant discover exactly what you want. The very same occurs with pet dog companies. Company flag anything that appears like competition as well as this one truly obtains them going … so we need one more method to get the word out which is through word of mouth and also articles and anything you can do that make individuals conscious. Our job in this area is not unique but we have among the biggest subscriptions as we started regarding a year ago.


Importance of Proper Financing to Businesses

Making the best financial plan is a very important exercise for any or every business owner who is looking forward to establishing a great and successful business. Having a well outlined plan for all your financial necessities can make running of your business even easier, from being able to manage your cash, staying focused, as well as managing your expenditure.


Cash Management

Many businesses have monthly or seasonal variations in revenues, which translate into periods when cash is plentiful and times when cash shortages occur. Having a financial plan that is structured so there is always a cash cushion helps the business owner sleep better at night. The cash cushion allows the business to take advantage of opportunities that arise, such as the chance to purchase inventory from a supplier at temporarily reduced prices.

Long-Range View

In business it is easy to become focused on the crises or issues that must be dealt with on a daily basis. The price for being too short-term oriented is that the owner may not spend enough time planning what needs to be done to grow the business long-term. The financial plan, with its forward looking focus, allows the business owner to better see what expenditures need to be made to keep the company on a growth track and to stay ahead of competitors. The financial plan is a blueprint for continual improvement in the company performance.

Prioritizing Expenditures

Conserving financial resources in a small business is a critical element of success. The financial planning process helps a business owner identify the most important expenditures, those that bring about immediate improvements in productivity, efficiency, or market penetration, versus those that can be postponed until cash is more plentiful. Even the largest, most well-capitalized corporations go through this prioritization process, comparing the cost to the benefits of each proposed expenditure.

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Whether you are planning on putting up a small business or you already have one, having a reliable source of funding to keep it off the menace of being doomed by lack of funding is critical. If you are a starter, you may have a problem getting the idea on raising the extra amount of cash you need to get started. Despite the dilemma that many people find themselves in, being prudent in the pursuit for finances can give a great range of choices where one can get any needed financial support.

Smart leases. Leasing fixed assets conserves cash for working capital (to cover inventory), which is generally tougher to finance, especially for an unproven business. Warning: Don’t put so much money down that you end up spending the same amount of cash as you would have had you bought the asset with a down payment.

Bank loans. Banks are like the supermarket of debt financing. They provide short-, mid- or long-term financing, and they finance all asset needs, including working capital, equipment and real estate. This assumes, of course, that you can generate enough cash flow to cover the interest payments (which are tax deductible) and return the principal.

Customers. Advance payments from customers–assuming the terms aren’t too onerous–can give you the cash you need, at a relatively low cost, to keep your business growing. Advances also demonstrate a level of commitment by that customer to your operation.

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As much as financial planning is important in getting the much needed financial balancing of the business operation, all does not always go as it is supposed to be. Sometimes planners go wrong with this exercise and make mistakes that cost them eventually. A wrong presentation, an incomplete plan or a plan that is not realistic are just signs that you are headed the wrong direction.

The plan presentation is sloppy. Once your writing’s perfect, the presentation has to match. Nothing peeves investors more than inconsistent margins, missing page numbers, charts without labels or with incorrect units, tables without headings, technical terminology without definitions or a missing table of contents. Have someone else proofread your plan before you show it to an investor, banker or venture capitalist.

The plan is incomplete. Every business has customers, products and services, operations, marketing and sales, a management team, and competitors. At an absolute minimum, your plan must cover all these areas. A complete plan should also include a discussion of the industry, particularly industry trends, such as if the market is growing or shrinking.

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The plan makes unfounded or unrealistic assumptions. By their very nature, business plans are full of assumptions. The most important assumption, of course, is that your business will succeed! The best business plans highlight critical assumptions and provide some sort of rationalization for them. The worst business plans bury assumptions throughout the plan so no one can tell where the assumptions end and the facts begin

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