Posts Tagged ‘Business Startup’

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Lawsuit Funding Companies – Banking on the Small Entrepreneur

Saturday, July 18th, 2015

If you are a keen business executive, you must have observed the temerity with which small enterprises are fighting Fortune 500 in court. This is unusual considering these large conglomerates are flush with cash to crash plaintiffs.

Well, the secret lies in litigation financing, an aspect of financing that can help you safeguard your business even when the world around you seems to be crumbling.  Take for instance if an employee takes you to court over a case you have grounds to win.

Entrepreneur

Entrepreneur

Fighting Against All Odds

Fighting such a case can be devastating to your business if there is no other source of capital.  Luckily, litigation funding companies are bankrolling businesses in order to enable them fight any cases. Your enterprise might be facing one of the following situations:

  1. Intellectual property rights
  2. Disputes concerning assets
  3. Customer compensation suits
  4. Suits on unlawful termination or liability issues pertaining to your firm

Benefits of Lawsuit Funding

These are just a bit of legal issues your company can face at any time.  To survive then, you need to bank on a financial partner who trusts you will eventually win. Litigation funds help to pay attorney fees and clear other costs pertaining to your case. The advantage of these loans includes:

  1. Protection against bankruptcy due to a court case
  2. Spreading risks thus avoiding by avoiding litigation expenses
  3. Peace of mind in order to concentrate on your business as attorneys deal with your lawsuit
  4. Easy approval after assessment of the strength of your case
  5. No upfront fees and you only pay when you win. In essence, it is a no recovery no payback agreement which relieves you off any pressure.

The benefits go on and on but what you cannot deny is the fact that for once, the small business has a partner to lean on when the ground gets shaky.  You also feel more confident on your side as you will know these experts have already seen the strength in your suit.

Tips on Using Lawsuit Loans

Now that you appreciate the benefits of this kind of financing, it is time you started exploring the industry in order to identify the best firm to work with. Here are some tips on getting the best out of the deal:

  1. Weigh the options: While this might appear like a new industry, it has been in operation for a long time. This means there are many players out there therefore research and comparison is called for. You need to take time and examine as many companies as possible before picking the best.
  2. Understand every minor detail: It is critical to understand every aspect of the agreement to avoid disagreements in future. For an entrepreneur, more legal tussles can ruin operations and you must avoid them at all costs.
  3. Understand the application process: The agreement involves you, your attorney and the funding firm. A lot of research will be necessary but it is always crucial to follow the guidelines of your lawyer before applying.

There you have it; your business at last has a source of recourse in case you are slapped with weighty litigation.

BIO

Anita Burton is one of the most recognized legal writers for the last three decades.  Today, she focuses on aspects of the law that can help hapless citizens such as lawsuit funding companies.

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Posted in Entrepreneur, Financial Intelligence, Guest Post, small business | 1 Comment »

Freelancing Your Way To A Real Business

Wednesday, April 16th, 2014

When it comes to risk versus reward, freelancing is one of those vocation choices that has the potential of offering plenty of returns without a lot of up-front resources or capital at stake. Given the right opportunities, knowing the right people, and having the right skills can turn a casual hobby into something you can actually get paid for doing.

Here’s how you can take that freelancing gig of yours and turn it into an actual, consistent business. Of course, this isn’t the last word on the subject. Aspiring self-employed types should get as much knowledge and information as possible; especially in topics like how to promote yourself, Financial Management for Freelancers, and how to file taxes as a self-employed entity (spoiler alert: it’s a bloody nightmare).

Freelancing Your Way To A Real BusinessYou can turn your hobby into a business if you have the time, talent, and opportunity

Be Prolific
The best way to get your name out there is to be productive. Whether you’re selling a product (like a craft-related item), or offering a service (such as a writer or website designer), people need to see that you can churn things out that customers want. For instance, if you’re a writer, make sure to get your name out there by writing for magazines, blogs, or anthologies. Start getting that reputation as someone who delivers results. You need to leave your footprints and handprints all over the Internet.

Be Patient
Although it’s exciting when you start getting multiple clients, you really have to pace yourself. Having six clients giving you work at the same time may look good in terms of income, but if you spread yourself too thin, you’ll deliver an inferior product, and make it likely that you won’t get repeat customers. Know your limitations, and build up your customer base slowly. Don’t try to tackle everything at once. Better to start off with three clients that get excellent work from you than ten clients who get barely passable work. This means learning to say “no”.

Be Prepared
One of the most hair-pulling and frustrating things about freelancing is the inconsistency. On any given month, a client may give you four projects or purchase a large amount of the goods you produce. The next, they may barely remember that you even exist. Be ready for the lean times by socking away some money for emergencies, to tide you over when you have a light month. Also, having that reserve will make sure you don’t get desperate, and end up taking a job far outside your area of expertise, something that could have serious repercussions on your overall reputation.

Be Organized
Many freelancers and one-person businesses end up working out of their home. While this is an awesome aspect of the job, make sure you have boundaries separating your personal and professional life. Set up times when you’re “at work”, and when you’re enjoying time off. That requires a level of planning and organization in order to adequately map out your responsibilities and how much time you devote to them. Also, make sure you have a work space that’s separate and dedicated to your job, if for no other reason than making it easier to claim it as a business expense of your income tax return.

Be Visible
Finally, make sure that people know you exist. Since you are self-employed, then shameless self-promotion is key. After all, working for yourself means that you are responsible for every stage of the job and yes, that includes marketing. Make sure you have business cards, a business page on various social media platforms, and an easy way for people to get a hold of you, whether by cell phone or email. If you have a blog, make sure to drop an occasional reference about your business (something which should already reside in the About section of your blogging site). Seriously, you need to let people know you exist and that you can write. Or draw. Or whatever it is you do.

It’s exciting and challenging when you take an avocation and turn it into a vocation. It becomes even more exciting when a part-time freelance gig turns into a full-time job. And there’s a lot of advice out there for budding entrepreneurs, so keep your eyes open.

Byline: John Terra has been a freelance writer since 1985. He’s done the full-time writing thing, but these days he supplements his freelancing with a “regular” job.

Photo Credit: justinmatthew21

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Posted in Entrepreneur, Financial Intelligence, Investing, small business | 1 Comment »

8 Points That Could Save a Start-Up from Messing Up

Thursday, February 20th, 2014

This article is built on the experiences of entrepreneurs who had fallen flat on their faces while trying to manage and host their start-up ventures.

We think of a mind-boggling business idea and expect it to spark up as soon as we prepare a proposal. Well, it never works that way. However good or bad an idea is, there are certain steps that need to be followed.

Before putting your idea into a set of plans and procedures on paper, here are a few things that need to be understood.

Business Startup

Business Startup

Is my idea functional?

Before getting caught in the excitement of your brilliant idea, spare a thought: can the idea be put into execution?

The concept needs to be grounded in bigger ideas for you to be able to sell it. Don’t tangle up too many ideas, focus on one at a time, and build different techniques to make them happen.

The objective here is to make sure that your idea can be pinned down to work out for the market.

Scoring funds isn’t easy

Take my word; capital will not come to you effortlessly.

You may have to pitch time and again to win investors to your side. Pitching is extremely significant. The dumbest idea can pass if the pitch is awesome.

Do thorough researches, take your time to prepare each slide to be presented, and propagate how unique your business proposition is.

If you feel it is taking too long to get funds and time is running out, pitch in your investments. It can help your business, and play the credibility factor when pitching to investors at the same time.

Be prepared to touch the highs and lows

The business is not going to flourish as soon as you start. It will take time to accomplish each milestone.

Additionally, it is important for you to be prepared in case the plan doesn’t work. Amend your strategies, be focused and push your organization to reach the targets.

If every move is drawing the results you desired, you can go for that extra mile to make your business better. But don’t be too hard on yourself or your employees.

Hire carefully and appreciate candidly

Only a good team, which believes and backs your idea, can let you take over the market.

Hence, hiring is going to be a challenging job for you. Ideally, your team should have skilled professionals, men and women with industry experience and members who have prior understanding of successfully managing a start-up.

Employees at every level need guidance, assurance and motivation, which are to come from you, the person who leads. A lot of effort is taken to build a start-up, so don’t miss out on appreciating employee efforts.

Work individually, but work more as a team

Needless to say, your team is vital to the success of your business.

The objective of the business can be reached faster and smoother if you are held together as a team. Organizational growth comes through sheer team work, and hence it is important to keep your employees as content as your investors.

Hear out the needs of the employees, provide them with adequate requirements and channelize them to use the limited resources available.

Bring the focus to limelight

With a considerable amount of work being allotted daily, it is easy to get carried away and slip into a whirlpool of confusions and heated exchanges.

It is definitely better to acquaint each team with the other ones, mainly to have them understand where they are heading in the middle of a mission. As a leader, you should take up the responsibility of constantly reminding (of course not nagging) them about the objectives of the business.

Time is precious – start acting!

When you are done with thinking and researching, the next step is to start acting, whichever small way possible.

It takes quite some time to build the brand; the earlier the better. You don’t need to wait for investors to fund in order to start your business. Begin with limited costs and resources.

Build networks and relationships

Bond with everyone – investors, employees, suppliers and stakeholders.

Start-ups usually tend to make mistakes or face hurdles frequently. Be it with resources, technology or monetary issues, it doesn’t matter. Building reliable relationships can actually help your company cope with such setbacks.

Most of these tips might have passed your thoughts, but it’s easy to forget them. To keep it simple, make a journal of everything that you did and things you have to do.

Your start-up can go terribly wrong if you don’t have these pointers on your mind. These are simple steps. Without them, you will end up pushing costs too high and fail to impress.

Author bio:-

Matt Davis a partner at Empire commercial Finance, a firm specializing in business mortgage Chester seeking to serve client of UK with ease.  A company with expert professional commercial finance brokers providing financial support for all start-up business 

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Posted in Entrepreneur, Guest Post, small business | 2 Comments »

Why Economists Love Cloudsourcing

Saturday, April 6th, 2013

“The cloud” is the phrase on everyone’s lips this year, but not all new ideas stick with us—Segways, zip drives, and HD-DVD were all the hot new tech at one point, and they’ve all gone the way of the dinosaur. Will cloud computing wind up on the scrap heap of tech history? We don’t think so, and neither do many economists. Here’s why:

1. Cloud computing massively lowers fixed costs

Drumming up initial investment is one of the biggest hurdles that small businesses face. The larger fixed costs are, the harder it is to get started—and the more likely entrepreneurs are to get stuck in an exploitative contract with investors. All startups endure a zero-profit phase while they build customer base and pay down their fixed costs, and the longer that period is, the more likely a business is to fail. Cloud innovations like virtual desktops, storage, and money management lower the need for startup cash, shortening the window of zero-profit, and allowing more good ideas to turn into successful businesses.

2. Global cloud networks spur investment in developing countries

Until quite recently, people in developing countries had very few opportunities to connect with the world of global business; if you couldn’t afford to go to college overseas, you were stuck. Now, cloud networks connect hospitals in Europe with x-ray technicians in Bangalore, and American corporations consult with engineers in Nigeria; the human capital of the entire planet is increasingly connected in an efficient, wealth-generating network that is far more than a passing fad.

3. Cloud services give small firms access to economies of scale

Most production processes get cheaper as they get larger, and in the past, that fact has strangled small businesses who attempted to compete with the bigger players in their industries. A mom-and-pop grocery store simply can’t match the massive, fine-tuned supply chain of a global supermarket franchise. For services like data storage, web hosting, and accounting, the cloud has given small firms the same “bulk discount” that big companies receive—which makes markets susceptible to disruption and innovation on an unprecedented scale.

4. Comparative advantage is everything

Comparative advantage is the first principle of economics: it states that economies run better when everyone concentrates on their strengths, instead of trying to do everything themselves. Until recently, most entrepreneurs would have to serve as accountant, lawyer, analyst, customer service, and IT, all at once—a very inefficient and exhausting way to do business. Today, cloud services allow entrepreneurs to focus on idea-creation and execution where they have expertise, and use cloud services to store their data, track financial goals, and hire customer service and tech support at minimal cost.

5. Cloud networks broaden the labor market

Only fifteen years ago, companies were limited to the workers they could hire in-town, or persuade to move. Now, about three-fourths of businesses in the US hire part or full-time telecommuters, meaning they can select the best employees from all over the world to meet their company’s needs. Cloud file structures like Dropbox and Google Docs allow firms to collaborate seamlessly across the world. Not only does this allow for firms to save money and run more efficiently, but it also allows workers to find employment without the massive cost and commitment of moving across the country or the world.

 Tara Wagner is a staff writer for TechBreach. She has worked from home for over a decade, and loves sharing news and advice with fellow telecommuting moms and dads. She’s fascinated by new tech and new ideas; and when she finds time to unplug, she enjoys long hikes in the mountains near her home. She lives in Denver.

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Posted in Entrepreneur, Guest Post, small business, Tips & Tricks | 1 Comment »

Starting a Business on Credit: The Forbidden Financier

Thursday, April 4th, 2013

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.

Credit Cards

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.

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Posted in Entrepreneur, Financial Intelligence, Investing, small business | No Comments »

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