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Filed under: Business
How to Attract Potential Investors For Funding in Your Company
by Young Aspirations on Jun 26th, 2010
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A Lot of Business Entrepreneur’s are really dubious in adopting the best possible approach for seeking Funding of their Company.
Sometimes, Business Entrepreneur’s consider gathering funds for operations of their Business Enterprise really Challenging.
To be Honest, attracting investors is not a hard nut to crack. All You need to do is adopting the Right Strategy. For This Purpose One needs to be proactive.
It is a mere possibility that during the Initial Stages a Company may not receive appropriate Funding but instead of being Complacent the Aspiring Business Entrepreneur’s should try something new. It is a Mere possibility that this time around they succeed in gathering valuable Funds for their expanding their company operations growth.
Below are some steps that you need to ensure you have carried out correctly. Think you are Doing your Home Work when accomplishing these important steps
Set Up Your Mind Like An Investor
Think yourself as a potential Investor and evaluate the Condition of Your Corporation. Just Try to scrutinize your Enterprise as deeply as you could. Try to Find Out If there are some factors that are distracting you from your investment in the Business Organization. Try to Take this as a Challenge. Only Identification of possible Draw Backs is not enough to deal in correctly, a rapid remedial action is required to eliminate the possible deficiencies within your Organization’s structure.
Prepare and Present Investors a Business Plan
Potential Investors are always in search for the possible upcoming plan’s of the Business.
For This Purpose The Mission Statement, Vision, Goals and Objectives must be clearly identified in your Business Plan.
The Business Plan must recognize the Future products or Services your Company will be Offering. The Business Plan Must clearly Indicate the Costs and revenues from the Operations of the Business Activities.
How you have planned for utilization of Capital Investment. What is the Scope your Upcoming Products that may hit the Market. How well Designed your Products are. What skilled Labor You Want and Much More. Sometimes Investors may even Demand the Budgets for Next Operating Cycle. Be Vigilant in setting up Realistic Targets.
Legal Agreement
Next step is to perform a Market Research and Observe what sort of Terms and Conditions successfully Funded Companies did present to their Investors.
Always Keep Space for Termination of Contract and try to Dictate the Terms suitable both for the Investor as well as the Company.
Lenient Terms should be negotiated to allow room for Investor’s divestment as well as your termination from Investment.
To receive Lump Sum Funding A Strong Contractual Agreement must exist bound by Legal Clauses otherwise Investor may propose a slow and steady funding for your organization that will rely purely on Business Performance over the Operating Cycle.
Past Records
Investors are always keen to scrutinize the past performance of an Organization. They want to ensure that the Funds provided by them will suffer no corruption and all Funds provided will be Invested in a manner that will maximize their profits.
Investors will also be interested in the Popularity and Market share of the Products or Services Offered by a Company if it is already operational. The Staff performance and Goodwill also has a huge impact. The Customer’s trust and Market Reputation will also be needed by Investors. The Investors Specifically evaluate the Past Data for Board of Directors, Chairman and Chief Executive Officer.
Robust Financial Statements
The Audited Financial Statements present the true and fair view of Business Financial Performance over the last Accounting Cycle. Investors Expect Business to be Generating Huge Profits If they are to Invest a Large Capital in the Business. It is a General Rule that states You Need Money in Order to Earn Money.
Cash Flow Statements play a Vital role. Positive Cash Flow in Mandatory. The Statement of Financial Position must Present a steady and acceptable Current Ratio. The Liquidity of a Business is the key factor in determination of its future performance. Investors need strong Financial Statements in Order to Provide Capital for Business Operations. Investors also Compute the viability of their Investment through Dead Capital Formula.
If an Entrepreneur carries out above steps correctly then it is a big possibility that the Investors will Invest in Business Operations.
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Filed under: Business
The Salt lake Indies Valley in Argentina
by Young Aspirations on May 11th, 2010
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Indies is the Mountain Valley in Argentina that is 13000 Feet above the sea level. This area is really strange where hardly any thing grows or any animal survives.
In between these Mountains there lies a shining lake. The lake is unique in the context that it is not an ordinary lake but a salt lake.
During the Months December,January,February and March the lake remains filled with rain water. The rest of the year it remains dry.
The local people collect salt from the lake during the season when it is dry. Numerous wells are dug ranging up to 50cm and salt in the form of crystals is extracted from the well.
On average this lake lake produces 2.5 tons of salt per annum. It is really a tough job to perform the task of extracting salt from the mines of this kind as the environment pulls you back.
The high Intense Heat of about 40 Degree Centigrade and warm Intense Breeze may cause severe damage to the lungs and may even damage the skin.
To protect themselves from the threat of harm native people cover their faces before starting their work.
The salt is collected and filled in packs of 50 Kilograms upon drying. The refined salt is sold at a price of 18 US Dollars per Ton in some parts of Argentina.
During the last few years a lot of efforts were poured to make this place attractive to Tourists but in vein. The indigenous people say that life in this part of the world is really tough but they have no other option.
Young people want to leave this place as they say that they do not want to be like their parents who spent all their lives in salt.
A variety of Decoration Pieces and other beautifully designed things are made from the salt and sold to earn money.
This area is indeed interesting courtesy the unique salt lake.
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