Category Archives: Startup Biz

The Pros and Cons of Facebook Commerce

Social media is constantly evolving to keep up with the times. Facebook used to be simply a way to see what your classmates were up to. Now, businesses can market and sell products on Facebook. While Facebook commerce is not the top way to sell products, Facebook is certainly becoming an important advertising tool. It is not without its faults, however. The value of Facebook depends largely on what businesses want to sell and who they want to sell it to.

Pros

1. Facebook Brings the Product to the Client 
With over 1.2 billion members, Facebook is a popular internet destination. Businesses can use Facebook to bring their products to the people, instead of waiting for the people to come to them. People do not go to webpages for products they are not already interested in or do not know about. They do use Facebook, however. By placing ads on Facebook, businesses can direct many more people to their website who might not be searching for them otherwise.

2. Clients Sharing Business Links Provides Free Advertising 
One feature of Facebook that can really benefit businesses is the “share” feature. When a business’s fans and supporters like and share a business’s Facebook page or product, they help get the word out to all of their friends and family, who may not be familiar with the business or product. Not only is this is free advertising, but potential clients are more likely to pay attention to advertising if it comes from their friends and family.

3. Updates in Clients’ Newsfeed Keep Businesses on Clients’ Minds 
Businesses on Facebook can keep their clients informed and up-to-date by publishing stories which appear in their clients’ newsfeeds. By regularly appearing in clients’ newsfeeds, businesses create familiarity and keep their business in the minds of their customers. By advertising new products, sales and promotions, businesses can keep their clients coming back to their website regularly.

 

 

 

Cons

1. Business Fees are Cost-Prohibitive for Very Small Businesses 
While it is possible to set up a Facebook online store so clients can buy products straight off of the Facebook business site, the monthly fees are cost-prohibitive to very small businesses. Many very small businesses create Facebook business pages to showcase their product but then actually sell their product elsewhere. This can be a hassle for very small businesses and their clients.

2. Facebook Does Not Reach Every Demographic 
While Facebook is used by many, it is not the best method of advertisement for every demographic. Companies who want to reach young children, the elderly, or people who do not have internet access are not likely to benefit from a social media website that is not frequented by these segments of the population.

3. Facebook is Not a Good Match for Every Product 
Furthermore, Facebook might not be the best choice for every product. Facebook marketing depends to a large degree on people liking and sharing products on Facebook. There are some products that most people would not be proud to use or want to share with their friends and family. These sorts of products would sell better using traditional advertising and websites.

Info source: Understanding Social Commerce and Its Benefits to Your Business

Singapore Company Registration: LTD Companies

When you decide that forming a company within Singapore is something that you may want to do, you must decide on what kind of business structure that you choose for your business entity. This decision affects many important aspects of your everyday life; how much you pay in taxes, the perception of your business among your clients, your ability to get a loan, the type and amount of paperwork that is necessary among many other things. Most of the private companies within Singapore are registered as limited liability companies.

A limited liability company (LLC) is a company in which its shares (or liabilities, as you will) are limited (hence the name) by the company’s share capital. A Singapore LLC can comprise of a few different types. One of those is a private limited company. A private limited company is a company in which all of the shares of the company are held by fewer than 50 people. It is the preferred type of company for many entrepreneurs within Singapore for a few reasons. The ease of raising capital, the constant reelection of its members, limited debt liability, and the ease of transferring ownership are some of those reasons.

Another type of LLC is a public limited company. Public limited companies are able to offer their shares to the public and must have more than 50 shareholders in order to be considered as one. They are normally listed on a stock exchange and are held to stricter rules about what it can and cannot do, due to their ability to raise funds from the masses. A public company limited by guarantee is another type of LLC; these are entities used for non-profit purposes.

A limited partnership is also an alternative to setting up a business within Singapore. Within a limited partnership, each partner’s liabilities are restrained to that partner’s investment within the partnership. Finally, a limited liability partnership combines the attributes of both companies and normal partnerships. These are typically meant for carrying a profession in which two or more people are interested in building a practice within a particular field. The owners of this type of business must agree to how various responsibilities and profits are divided, and normally find their own clients based on their profession. Company formation in Singapore can be done at www.company-registration.sg. Great tips: Overcoming Common Jitters of New Entrepreneurs

Venture Capital Fund Raising For Your Business or As a Firm

Venture Capital has become a booming business in the past few years. VC investing increased by about 31 percent in 2012. This might seem counter-intuitive, considering the skittish interest that investors have in the stock market. The answer might be that ordinary stock is unappealing, because established businesses are undergoing stagnation or downsizing. Investors might be hoping that emerging industries will fuel their desire for profit and growing assets.

There is plenty of money to be had, and many wealthy people are just holding onto their funds until they can find something better than slow bonds. If people think an asset is ready to grow, they are willing to take inordinate risks in rather shaky markets. Venture Capital is up because other investments seem less appealing.

This means opportunity, if you are a firm that specializes in venture capital fund raising. There are plenty of growing businesses that need cash to fuel their advancement, and plenty of of people with real cash that want the inside deal. A firm that can persuade both ends of business can end up with a lot of honest work.

A third party that offers fundraising as a service must know how to advertise an investment opportunity and how to hold a conference. They must make it seem like real information and not just a sales pitch. People are protective about their money, and do not want to feel like they are simply being sweet talked. Real facts and figures are key, as well as demonstrations of the end product.

For a firm that can show a successful track record, they will find ready customers both in start up companies and in folks wanting a slice of the action. Someone who can work both sides will garner good commissions and whatever other compensation becomes due. It is a rewarding career that serves a necessary purpose for emerging technologies and the entrepreneurs who are trying to put them on the market.

New companies can themselves seek venture capital, which might be the first step before a company can even get started. Closed stock that is sold to venture capitalists is often called seed funding. It is the money that goes into a business to get it started. Since it is not already operational, seed funding is considered more risky than investing in something that is already running and vigorously growing.

Interested to advanced venture capital topics? Read more from David Hand Crescent Point Singapore or visit Crescent Point Venture Capital news site, the leading emerging markets investment management and financial advisory firm primarily targeting in the Asia-Pacific and Middle East regions.

Howard Hartenbaum from August Capital discusses different types of funding sources, different types of investors and how to approach them, what VCs look for in companies, and his experiences from being an IT investor and entrepreneur.

Private Equity for Start-Up Businesses

Small businesses are often faced with problems that larger businesses do not face, the largest of which is typically maintaining cash flow to run operations as well as to expand. Cash flow can be generated from many different sources including cash from operations, debt financing, and equity financing. While all three make for reasonable ways to raise capital, cash from operations is often insufficient to fund growth to truly expand the business, while debt financing can restrictive covenants that can limit an organization’s ability to expand. Debt financing often has punitive interest rates for small startups which can limit their ability to succeed during the critical initial period of the business when cash flow is tight.

Equity financing is commonly used as a way to attractive capital for small startup companies. Equity financing can either be obtained on public markets (regulated market exchanges) or through private equity financing. Many organizations, particularly small start-ups, do not feel as if they have sufficient critical mass to effectively tap public markets due to the regulatory costs associated with public filings. As such, this leaves private equity as the most effective way for these organizations to obtain financing to run their business.

Private equity can be attracted from many different sources. Individual investors make up a source of private equity raises, but can be difficult to attract. In addition, blue sky laws which fluctuate from state to state may limit this as a source of equity for some companies who are attracting a large number of investors (typically over 500). Startups often turn to institutional investors as a way of raising equity that can be significantly higher in amount and therefore not subject to these possibly punitive blue sky laws.

The way in which private equity transactions can be structured may be varied and fluctuate in terms. Common stock shares are sometimes issued, but increasingly preferred shares are issued by small startups to investors that afford them the ability to convert these shares to common shares if the startup entity is successful, but provides them with the ability to maintain a higher liquidation preference if the organization is later liquidated. As a result, convertible preferred stock is often used in private equity deals with startup organizations, although many varieties exist.

Raising private equity can be challenging for small startups as they often do not have the earnings history of larger organizations. However, they provide the opportunity to grow significantly faster than more established businesses and offer a higher rate of return to reward shareholders.

Stay updated with more news of private equity issues from David Hand Crescent Point Asia or learn further info of Crescent Point Private Equity, the leading emerging markets investment management and financial advisory firm primarily targeting in the Asia-Pacific and Middle East regions.

This video gives the training for finance on how private equity works.

Setting Up a Limo Service in Your Area

Setting up a limo service in your area will take some time, but if you are determined and take one step at a time, then you will be driving your own limousine, maxi cab or airport transfer service. If you are already driving a limo or you are new to the industry, either way owning your own limo service can be a very rewarding experience.

Experienced Limo Drivers

If you are new to the limousine business, then you will have to acquire training as a limo driver. Depending on the state in which you live, you may need a special license and training, you can check at the Department of Motor Vehicles in your area. If you do not have experience as a limo driver, then it may be best to hire someone in the beginning who has experience. Knowing the ins and outs of the business is vital for success, such as customer service and auto maintenance to name but a few areas you need to be familiar with.

Financing a Limo Business

Starting a limousine services business will take a large investment, and the biggest obstacle will be financing a vehicle. Limousines are specialized vehicles, and you can get a new or used one. Having a solid business plan will help you secure financing from a lender. There are many resources on and offline that can help you put together a business plan. There are also franchises available which could be very helpful in securing a loan.
 

Targeting your Market

You need to determine what or who your market will be and then determine how you will advertise. Many limo services offer airport transfer service, and many people have had great success in starting a limo service and then focusing only on the airport transfer service. Depending on what aspect of service you will provide will also determine what vehicle will be right for your limo business.

The vehicle you choose should be included as a marketing tool, inside and out. So, if you are focusing on airport transfer service, then you will want to promote a van or similar spacious vehicle to accommodate luggage. This can be easily done with a maxi cab booking.

The Good and the Bad

There are many good things about starting a limousine business such as you get to meet lots of interesting people, and you don’t have to stay all day in an office. The bad part is that the start-up cost is high.

How Outsourcing Helps Your New Business

Outsourcing is being considered by numerous companies due to its efficiency and low cost. It is very feasible for a company to get services from other people or company when it is just a minor thing. Labor cost eats a huge amount of profit. You can eliminate or lessen it by outsourcing. Here, you do not have worry on expenses on salaries and wages, bonuses, benefits, etc. You can even end the contract once the project is done.

Business process outsourcing (BPO) companies has spread all over the world. Like for call centres, they outsourced it to India, Philippines, among others. They see that when operating in their own country, they experience a much higher overall expenses. When offshoring, you need to consider the living expenses, labor cost, tax laws, etc, to invest on the right country. Nowadays, you can outsource a certified public accountant, payroll, hiring, record keeping, and the likes. That is why investing on a business outsource processing company is more feasible. But first, you need to choose the right country where you can incorporate.

When choosing among other countries, you need to be familiar with their laws, requirements, and to the entire process. In processing the company registration, to avoid delays and prevent rejection of application, you can get services from agencies specializing on company formation.

The companies can offer services such as processing of the business permits. It is important to choose the right agency that is really familiar with the laws, especially tax and employment laws. They can give you advices and guide you throughout the whole process.

As they do the company incorporation for you, you can focus more on building your business. As they save you time that is supposed to be intended for the company formation, you can use that time in strengthening the operations of the company.