If you search for entrepreneurship advice online, it won’t take long to find experts shouting to avoid credit cards. They may cite the Ewing Marion Kauffman Foundation, which found that every $1,000 of credit card debt increases the probability that a firm will fail by 2.2%, or financial radio show host Dave Ramsey, who claims credits cards are the scourge of American finance.
They probably won’t mention a pair of Stanford Ph.D. students that spread funding for their pet project across three credit cards or the designer that developed small plastic guitars while paying with small plastic credit cards. Those entrepreneurs went on to create Google and Guitar Hero, respectively, and if those companies’ successes are any indication, using credit cards to fund startups can’t be all bad.
Experts aren’t foolish enough to advise against credit dependence, but if you use them responsibly, credit cards serve as a valuable tools for growth. Consider these advantages to taking out a credit card for business.
Rewards
Pessimists hear “credit card” and think of compounding interesting rates, late payment penalties and plummeting credit scores. All of these things are potential consequences when owning a credit card, but that’s not the whole story. Rewards are a consumer’s chance to gain from the credit card industry. From airline miles to supply store discounts to cash bonuses, you need not look far to find rewards that offer a significant boost to your bottom line if you make payments on time. Things go south when you get behind on your payments, but credit card rewards add value to your business.
Credit Score
It would be one thing if card cards only served as cash advancements, but using plastic responsibly contributes to an important financial statistic: credit score. According to a post in the American Express OPEN forum by financial consultant Mike Periu, personal credit is a major point of interest for investors and lenders. You’re probably savvy enough to know that financing a business solely on credit isn’t wise, but building credit could open opportunities for outside investors. Lenders expect owners to have a FICO score of at least 700, according to Openforum.com.
Using a card to start a business puts your credit score on the line. Miss a payment, and you’ll see the score drop. Stay current, on the other hand, and your rising score will open opportunities to new investors.
Potential
In the end, financing a small business or startup with a credit card isn’t about rewards or your credit score. It’s about your dream and the chance to create something of value. The experts are right. Credit cards aren’t the best way to finance a business. You don’t always have thousands of dollars saved up, and there aren’t always venture capitalists waiting to write you a check. Credit cards afford you the chance to gamble on yourself.
If you believe in your business idea, don’t ignore credit cards as a possible financing tool. Who knows? You could start the next Google or Guitar Hero.
The continent of Africa continues to be the world’s fastest gold-producing region. The history, and events of today as they pertain to the continent are quite telling as to gold’s monetary value regardless of market conditions. Mali and South Africa have been two of the world’s top gold-producing countries for quite some time. Gold prices have risen by more than 500 percent since 2002, and will continue to rise as the global central banks continue their policies of liberally printing and debasing the value of world currencies. Wealth attracts criminal opportunity as we’ve seen with the country of Nigeria unfairly targeted in the well-known “Nigerian prince” scam. The following are some tips on gold investing and how to avoid being scammed.
Gold Investment
Mining
The Nigerian Minerals and Mining Act of 2007 prohibits “unauthorized” exploration and excavation of minerals from the ground, including gold. The federal government has issued permits and titles to several individuals and companies to begin mining. But the process has been slowed because villagers, who’ve lived on the lands for centuries, aren’t leaving quietly, according to the Global Post. Locals are well aware of the precious metal’s presence all around them, but in the past haven’t pursued mining because of small returns on their time investments. This has all changed now that gold is selling on international markets for about 10,000 Naira ($60 U.S.) per gram.
Nigerians are forming local associations and unions to pool resources and slowly buy back the right to mine their lands, according to Voice of America News. Lead poisoning is common, however, for miners who don’t take the necessary precautions. Any associations and unions looking to mine should invest in a supply of dimercaptosuccinic acid (DMSA), which removes lead from the body in case of poisoning.
Buy Bullion
Gold is now far too expensive for most Nigerians (and most others around the world) to buy at market prices, but is a great investment for those with the means. The main concern with buying gold bullion bars is, of course, being ripped off. A reputable online seller, such as US Money Reserve, will have disclosures and any risk factors on their website. The premium which any company charges over market value should never exceed five percent. The company should also have a verifiable address and phone number.
Gold Exchange Traded Funds
The best thing about gold ETFs (stocks) is that you can generally purchase shares for far less than on the per ounce gram basis bullion is sold. The Nigerian Stock Exchange added the NewGold ETF to its index in December 2011, which enabled investors to diversify without buying the physical metals. The fund has done relatively well in the subsequent 13 months after starting off slowly.
If you are trading in gold, do well to share with us in your comment. Cheers.
Take a second and close your eyes. Think about your dream job. What do you see? Are you a restaurant owner or the owner of a ballet studio? Are you painting in your own studio or running your own daycare?
Before you run and quit your day job, think about what it takes to start your own company. Don’t put in your two weeks quite yet — many entrepreneurs use evenings and weekends as a start to pursue the business dreams.
According to an article by MSN, the baby boomer generation entrepreneurs — boomerpreneurship — is becoming a more notable trend. With many members of the boomer generation getting ready to hit retirement, there’s a growing number of retirees using this time to start their own businesses.
Before you race out to start your own company, here’s what you need to know:
First Thing’s First, Consider the Financial Implications
Can you afford to start a new venture? Look at your finances and figure out what you can tackle. Don’t expect to go out and open up 20 boutiques all over the United States. Start small and open up a new company you can be proud of and that you can handle. Make a to-do list and plan out the first year of your business. Plan to have at least the amount of money you would need to buy property and keep the business going for at least six months.
Do Your Homework
I’m sure you’ve built relationships over the years, so take advantage your resources and business networks to learn what you need to know to set up your venture. According to MSN, you should gather relevant industry insight and look into the potential tax implications of the new startup business.
Never Use a Personal Credit Card
Using a personal credit card to start your business is not a great idea. If you aren’t careful, you could be setting yourself up for financial downfall, leaving you with mounds and mounds of debt. According to a recent study from the Ewing Marion Kauffman Foundation, almost 60 percent of startups rely on credit cards for financing during the first year of business. The smart way to go is to apply for a business credit card from American Express or another leading business credit card provider specifically designed to accommodate the operational needs of small businesses. Small business credit cards make it easy to separate your business and personal expenses, which will make things much easier for your accountant during tax season.
Do the Pros Outweigh the Cons?
Yes, becoming your own boss promises flexibility and can seem like the perfect dream job, but most likely, you will be working double the hours you used to all while decreasing your income. Don’t open a business expecting it to become lucrative right away, because it will take a few years at least to start seeing positive cash flow. But once you start getting money, enjoy the benefits!
Online Forex Trading has come to stay in Nigeria. A significant percentage of my first time visitors discover Nigerian Entrepreneur via their search for Trading Forex Online in Nigeria. That is kind of funny since FX is not my focus for this blog.
I have observed that over the years, more and more Nigerians are becoming active forex traders. Even though in time past some Nigerians made false claims about their forex trading expertise, the trend is gradually changing. We are beginning to have real professional forex traders who are earning reasonable income from online forex trading.
What Do I need To become a professional Nigerian Forex Trader?
On several occasion, I have received emails requesting that I explain to the sender how one can become a Professional Forex Trader without falling victim to those seminar gurus. Some have pleaded that I recommend a Forex Broker or a Professional Forex Trader who can coach a newbie into becoming a professional FX trader. Well, I had resisted the urge to do so because I am not all that knowledgeable in Trading Forex.
Last week, while discussing with a friend, he explained to me that two factors are needed by a newbie desirous of starting online forex trading business. There is need for a coach, that is an active trader (not a seminar teacher making empty claims). Also, there is need for a reputable Forex Broker. He warned me not to give out his name as a Forex Coach. I wonder why he doesn’t want to coach people. So folks looking for reputable coach, I’m still searching for one that I can recommend.
Well, for the second requirement, he recommended United World Capital, a foreign based Forex Broker that is currently wooing Nigerians. He stated that the company has special interest in Nigerian clients. That sounded unbelievable because even though I knew that Trading Forex is a Multi-billion Dollar Market with great potentials, I never knew that the activities of Naija brother and sister in the industry is beginning to attract international attention.
Well, I visited the official website of UWC, and I must say the website is quite user friendly. I have visited the official portal of several Forex Brokers, but United World Capital (UWC) seems to be different from them all. UWC webmasters seem to have taking into consideration some of the constraints that Nigerian FX Traders faces. They also have quite some mouth watering deals for both would-be traders and affiliates. I will mention some of the things I saw but I suggest you visit their website after reading my ramblings.
United World Capital Deals For Nigerian Forex Traders
I visited UWC website, and I decided to use their onine chat service. The rep that attended to me stated that UWC is focusing on becoming the best Forex Broker for Nigerian FX Traders. I was told they have some cool special offers for Nigerian clients. That will definitely bring a boost to Nigeria Forex trading opportunities.
Opportunity for Newbie Forex Traders – According to the rep, any Nigerian Trader that registers with them will have the opportunity of trading in different foreign currencies, gold, stocks and CFD. The required minimum deposit for a starter is $10 and they are willing to provide leverage up to 1:500. If you decide to start big and you deposit $50 you will be given a bonus $25. Well, for those with fat purse, a deposit of $300 will attract $100 bonus while 25% bonus goes to those making first deposit above $500. Quite tempting I must say.
Easy Account Funding Options – I guess they are aware that PayPal has not been so friendly to Nigerians. So they already put in place different options for getting fund deposited into your trading account. You can use AlertPay, Okay Pay, Western Union, Bank Wire Transfer, Money Bookers, Debit Cards, Credit Cards, Neteller, WebMoney etc.
Easy Withdrawal of Fund – Withdrawal from trading account is equally facilitated via several options. So no more using PayPal palaver as excuse for not starting an online business. Beside the opportunity for would-be Forex Traders and Professional FX Traders, there is also another opportunity being provided for Nigerians by UWC. You can become their affiliate and earn money.
United World Capital Deal for Nigerian Affiliates
If you don’t know what an affiliate is, read my post UWC gives room for anyone to become their affiliate. They are promising $10 commission for every referral you send to them who traded lot (lot is the contract volume in forex) + $20 extra for every client that deposit more than $50. They are promising free website design and hosting for Nigerian affiliates who want a website. There is need to get more details on this though.
It doesn’t end there, they claim that any Nigerian affiliate who can provide 1000 traded lots per month or more will be considered for managing his or her own UWC office in Nigeria (please don’t be surprised if you suddenly start noticing UWC banner and text link on this blog). This offer is quite tempting. I’ve almost completed my registration as an affiliate.
What is in it For Nigerian Entrepreneur?
I know you’re beginning to suspect my motive for writing this article. Well, I will leave you to keep guessing. There is nothing wrong with me desiring to make money as a blogger or even becoming an affiliate of UWC. The important issue is that I have shared the same opportunity with you. So, go check out United World Capital deal for yourself. If you decide to take up the opportunity, when next you blog about your Nigeria Forex deals, do send me a love-link. 😉
Well, that is the end of my ramblings. It is time you go to United World Capital official portal to get more details for yourself. Please drop your thought in the comment section. It will encourage me to keep writing. If you happen to know a Professional Forex Trader willing to become a coach to newbies, drop his/her contact in the comment section. That is just the missing factor we need to compliment the opportunity being offered by United World Capital for the newbie Nigerian Forex Traders. Cheers.
Is the NSE Crisis another scary story for Nigerian Investors?
Many are yet to recover from the exposure of the rottenness that existed in the Nigerian financial sector by Sanusi. It is heartbreaking and worrisome that another bad news is making round that Nigerian Investors in the capital market are in for another shocker! Just like we were lied to when the banking crisis started, some people who claim to be experts are telling investors not to get worried because the crisis in the Nigerian Stock Exchange (NSE) will have no effect on the performance of the market.
Does one need a prophet to tell that there will be a negative effect? It is obvious that some innocent Nigerians who had trusted the leadership of NSE with their life savings are about to wake up to a bad reality. I won’t be surprised if after investigation and forensic audit is carried out, we discover that the ex-leaders of the NSE are found wanting!
Several people in and outside Nigeria has pointed out that Nigeria is blessed with everything except one critical item, GOOD LEADERSHIP. In every area innocent Nigerians have been made to pay dearly for crimes committed by LEADERS who are not accountable to the people. Our leaders reigns as demi-god who exist above the rule of law.
Activities of leaders are shrud in secrecy and crimes are committed and covered up. Atrocities only get discovered when it is too late and much damage has been done to the system. Unfortunately, even when the atrocities are finally discovered, the guilty ones still go unpunished because of the poor legal system we have in place. Cases of open looting of state and federal treasuries gets buried under bureaucracies and legal-webs that makes it difficult to obtain justice.
Now that the stock market has gotten another shock, wither shall the Nigerian Entrepreneurs go for investment?
