Posts tagged: business

Business Decisions to Make After Hitting the 5-Year Mark

business moneyThe five-year anniversary marks a good time for business owners to stop and evaluate the company’s status and the next steps going forward. Much will depend on where the company stands in relation to where it was half a decade ago. This metric can help small business owners gauge what the next five years have in store.

Here are some typical options for thoughtful consideration:

Expand

If you’ve been in business for five years, the next question is whether or not to expand your business. Just because you are profitable and problem-free at this point does not necessarily mean the company should grow. Investing in higher production, more employees, or expanded facilities runs the risk of over-extending your financial and managerial capabilities. But if everything is running smoothly with savings in the bank and careful use of small business loans, this may be the time to take your company to the next level in moderate rather than giant steps. Scaffold your growth incrementally to minimize the risk of loss while assessing each new phase of development.

Upgrade

With operations running smoothly, you may want to upgrade machinery or processes to save time. While this usually entails an up-front investment, with a clear eye to the economy and a realistic view of possibilities, upgrading to new or improved assets can set the bar higher to help the company reach new goals. Upgrading equipment may help to keep your business competitive within the industry while soon seeing more profitability.

Reorganize

At five years, it may be time to consider reorganizing the company. You may want to step back from leadership to let an outside person come in with fresh ideas. The business may have grown to the point that you decide to establish a subsidiary branch for a specialized offshoot product. Department divisions could become more diversified. Future growth may need to be strategized and direct the reorganization for a leaner budget or increased productivity.

Refocus

If profits are lagging or employee performance is sliding, it could be time to refocus company efforts into rebuilding the product line. This might be a good opportunity to introduce motivational employee training, too. If the company has experienced mission creep or the original goals have shifted, this is a good time to reevaluate and refocus company objectives.

Sell

When a business reaches and exceeds the original goals, another option is to sell the company. You might feel there is nothing further to be done within the company, and it is time to find a new challenge. Conversely, profits may be so low or so high that you have neither the drive nor the ambition to stay at the helm. If you decide to sell, take time to plan an effective exit strategy to optimize overall gains.

An entrepreneur who reaches the five-year sustenance goal of a business deserves applause. Rather than resting on company laurels, make a careful decision about where to take the company from here. Whether you hold on and grow via the above methods or decide to sell and move on to other endeavors, evaluate the first five years of performance in detail to see what you have learned and how that knowledge might be applied in the future.

Four effective ways to protect yourself on the financial markets

money marketWhen it comes to trading on the financial markets, you owe it to yourself to stay safe. After all, it is your own money that you will be risking! When you add in the fact that modern online trading sees you handing over your sensitive personal and banking data to brokerages, making sure that you stay fully protected is vital.

Of course, this should not scare you off from investing in the global financial markets! It is still a reputable investment method favored by many big names, such as George Soros, and one that you can take advantage of also.

Awesome tips on staying protected while trading

When it comes to staying as safe as you can, there are two things to think about. One is safeguarding against online scams and people trying to dupe you out of money. The other is how to trade in a way that protects you from the market turning against you in an extreme way.

Here are a few ways to avoid both:

1. Choose a regulated online broker

To begin with, we will look at how to keep your cash and personal details safe when trading the financial markets. Online trading has made this open to everyone now and has made investing in the markets simple for all. As with anything online though, you do need to keep your wits about you! Before handing over money and personal details to the broker you will use, check out their reputation and reviews online. Make sure that they are regulated by the relevant authorities for where they are based and also have secure website protection such as SSL or 128-bit encryption.

2. Personal cyber security

Another great tip to stay safe while trading online is to always make sure that your own cyber security is up to scratch. Change passwords to your broker and other sensitive accounts regularly so that no one can break in. You should also keep your own PC’s anti-virus software up to date at all times.

3. Diversify

When it comes to protecting yourself from major market crashes or moves, diversification is advised. This sees you spreading your investments across a range of asset classes, sectors and companies. If the market does move against you, then diversification will avoid it wiping you out totally.

4. Get the latest news

One great piece of advice for staying safe in terms of the markets themselves is to always be up to date with the current financial news. This will allow you to make the right trading decisions and manage your portfolio effectively so that you do not suffer big losses. Hammerstone Markets Inc offers a professional news feed service that many traders rely on to protect them in this way. Sign up for a free trial today to see what Hammerstone offers.

Knowledge is power

The last and perhaps best piece of advice for protecting your money when trading is to simply know what you are doing! Too many traders rush into opening trades before they know how the markets work or what their overall plan is. Take the time to educate yourself a little first and this, combined with our other tips, will help a lot.

Peer to Peer Lending Around the World

p2p leadingPeer to peer lending has become a phenomenon throughout the world in a very short time Due to the many variations of this practice throughout the world it can be confusing to people when this subject is discussed. Each country or region has its own laws, attitudes and customs in this area and they can differ significantly. So, if you are interested in peer to peer lending as a borrower or lender, or just want to study the topic some more, then read on!

What are some of the differences in meanings for the term peer to peer lending? In many countries, particularly those that are more advanced, technology plays a larger role. Lending and peer to peer investing platforms are online and bring together lenders and borrowers from all over an entire country. Investors do not know the individual whom they are lending money to and only see an online credit profile with which to make their decision. These platforms engaged in hundreds of loans each day. They also process loan applications, check credit of the borrowers and collect payments. These are large, and in some cases, publicly traded companies.

On the other hand, in some countries peer to peer lending is more local and personal. The lender will likely meet the borrower and they will develop a relationship. These relationships can ultimately result in several loans and the trust that allows a borrower to get more money if they have been faithful in their payments.

In some countries, the purpose of peer to peer loans is mostly to pay off credit cards or refinance existing debt. In other places, these loans may be more likely used to start a small business or pay unexpected medical expenses. There are also many other reasons to take these loans and more personal relationships allow the lender to assess the needs of the borrower and the likelihood that the loan will be repaid.

The laws of the land also play a big factor in how these loans, platforms and relationships work. Privacy laws may limit the types of information that a lender can know about the borrower. For example, a loan request for medical expenses may not include details about the borrowers specific medical issues. Credit reporting and bankruptcy laws also vary by country which affects the information available to lenders and may make is harder for them to assess the viability of certain loans. In areas where lender and borrower meet, the personal appeal and information provided by the borrower can go a long way in convincing the investor to make the transaction.

As the world has seen rapid adoption of this type of loan over the past ten years, the number of platforms and models has grown dramatically. Also, governments have scrambled to make laws protecting both borrower and investor. While there have been some issues, for the most part this type of lending has been highly effective for both parties and the future seems bright. Experts expect the outlook to continue to be good and growth forecasts indicate the market will continue to increase significantly.

How should you plan for a proper trading method?

money tradingTrading is simple and hard at the same time. It could be either one for you. Or you might experience both while you are in this business. But, if you manage to make a good and simple plan for the growth of your business, it will be very easy for you to maintain your trading performance. With time you can improve your performance and quality of your trading. For that, you must have a basic method of trading. It will be the skeleton for your trading process. And all of the fleshes can be modified according to your preferences. Today we are going to talk about a simple method of trading. Hope you will use this technique for designing your trading approach.

Long lasting trades is first

You might be thinking like a normal business while trading in a marketplace. But here, it is actually the opposite. To make profits, you don’t have to trade too much. If you can trade with efficiency for a long time, it will help you to make a good amount of profit. And the amount would be far better than winning multiple trades. This is the secret of the trading business, to be simple and relaxed. Because with that environment, your head remains sharper than being busy with trades. So, it can think properly and use the strategies in your trade’s plan correctly. And when you can execute a trade correctly and you keep it open for a long time, it will make you a lot of money in the end. So, always try the long trades.

Learning from your mistakes

Learning from your mistake is very hard. But the professional Aussie traders always rely on their past trade to make a decent profit from this market. You might be thinking about the digital journal in the CFD trading industry. Being new to this industry it’s very obvious you will get confused with the long-term outcome of this market. But this is just like your traditional business. You can’t make any real progress unless you trade the market with discipline. To be a disciplined trader you must work really hard. But this is not enough to ensure your profit factors. You must develop the unique skills to learn from your mistakes. Fix your existing issues with the extreme level of care and trade the market with logic. Forget about the big winners even though you have access to high leverage accounts.

Using the daily charts

Before executing any trades, you must observe the condition of the market first. For that, you will have to look at those price charts that are changing in real time. It defines the condition of a market in any current situation. Looking at the charts also have some effects on your trading performance. When you use the smaller time frame charts, it will bother you more than using a longer time frame chart. Because the prices will be frequently changing, you will have to look at them more often. You have to keep up with the market to trade. But, being too busy with chart watching, you might get distracted at the right moment you have to trade. So, you must use longer time frame charts for example at least with 1-hour time span.

Focusing on the position

Timing is necessary for your trades. Otherwise, they might not make good profits. Because the market is not obsolete and it is constantly changing. One minute it could be by your side and the other it can be the opposite side of your trades. So, you must trade with accuracy on time. It is not possible for every trader or every time. But, you must try to improve yourself with time. If you have the focus on timing, one day or another it will get right. Just stay relaxed and look for the right moment to pull the trigger.

What’s a Limited Company and How Do I Start One?

building businessWhen you are starting up a new business there are a number of different ways you can set it up – one of these options is to create a Limited Company – this creates a business which is entirely separate from you and your personal finances.

1. What is a Limited Company?

The company has its own business name and its own separate identify. You need a business bank account and the business can make profits or loss. It can pay taxes and have debt, of its own, all separate from you as the business owner.

You have to have a company bank account – it can’t be in your name – and all money earned by the company have to go into the company bank account but this is relatively simple to set up.

It is important to understand that the company is separate from you as a person – if you want to have more control and be more involved then it might be better to set up as a sole trader – when you and the business are one and the same.

2. How to set up a Limited Company

The first thing you need to do is choose your company name, and then decide where it will be based. You also need to decide who will be within your company as well. Once you have all that decided you need to think about shares – if you have more than one of you owning the company you will need to decide what percentage you each own. Find out exactly how to set up a limited company in this step by step guide from Crunch.

3. Shareholders

You are able to add shareholders to the company but you should seek professional advice on this side of things as there can be tax implications.

4. Register with Companies House

Once you have decided on everything, you need to go to Companies House website and register your company for a low fee. You can do the whole process online. They will check if any other businesses have the same name as you and will ask who your company director and company secretary are.

It is often possible to do this through an accountancy firm. You need to be aware that being a company director comes with legal responsibilities.

5. A Memorandum of Association

Companies House also require you to file a Memorandum of Association which outlines why the company was set up and how it will be run. It can be used in tax issues or legal proceedings so make sure it is drafted correctly. You can write it but keep it as simple as possible in that case.

6. Consider professional advice

While the process is simple, if you get it wrong it could cause problems further down the line so you might want to consider getting expert help from your accountant or from a company set up specialist. There will likely be a fee involved but it will be worth it to get everything right from the start.

7. Working with your accountant

An accountant will often provide the support to set up your company for free as long as they then continue to work with you to deliver your payroll and taxes and support your business on an ongoing basis. It is definitely worth looking into for all of the help and support which you will get for your business from day one.

8. The business bank account

You don’t necessarily need a High Street bank for your business bank account but there are plenty of other options out there which can be set up quickly to help your business get off the ground without delay.

9. HMRC help and guidance

As a new business owner you need to understand your expenses and tax obligations as well as VAT potentially so it’s worth checking the HMRC website as they have a lot of information and advice for business owners.

They also run regular webinars and advice sessions on all kinds of tax-related business issues so check out everything on there to make sure you register with them for tax and if you need to register for VAT etc..

Again, it’s better to make sure you get everything set up from day one, correctly, so that your business starts from a positive footing. If you have any questions or doubts about business taxes you can also seek help from your accountant.

Setting up a Limited Company is a fairly straightforward process but it’s important to work out if this is the best route for you by looking at all the options first. If you do decide it’s what you want to do, then seek professional advice, from you accountant, before starting out so that you make sure everything is done correctly right from the start for your new business, giving it a good foundation.