March 30, 2020 Finance makes the world a new place

Appetite for Debt – Why Loans is Good for You!

Appetite for Debt - Why Loans is Good for You!

Starting and growing a restaurant can be a money intensive proposition. Buying or renting space, kitchen equipment, and furniture is only the beginning. Add to this the utility, salary and inventory, and it’s no surprise that so many restaurant owners struggle to make ends meet.

However, there are many sources of capital available to business owners who understand, and perhaps nothing is so important to the health of a restaurant that grows rather than debt. Loans, rent, credit cards, mortgages, and personal records of all kinds can make a new restaurant take off, or help a thriving restaurant grow.

No Money Down

Jimmy Kavopovis, 42, is the proud owner of Steele Creek Caf ?, a fast food-friendly place in an office park environment. This is the third restaurant business. The restaurant industry is currently very challenging, Kavopovis said, and finding loans for growth is part of the challenge. “In the past you could place equipment for collateral, but times have changed,” he complained. “Banks don’t lend money to restaurants that often.”

Nevertheless, Kavopovis has succeeded in developing a thriving business through the use of creative credit – both traditional and other. He built and owns the building where Steele Creek Caf is? operates, and owns another building – formerly the home of his first pizza restaurant.

Balancing effort

“Restaurants are very capital intensive,” said Lesley Kohn, principal at Nextaurant, Inc. San Francisco. “So there are some extraordinary ways to increase debt.” Nextaurant works with chefs and owner-operators on budgeting, fundraising, and operations.  She has no lack of ideas and advice about using loans.

“Look at it holistically; too many companies are underleveraged,” Kohn says, referring to debt’s ability to multiply an owner’s profits without additional out-of-pocket cash. A holistic view of the business includes forecasting the budget for three to five years, understanding your personal income needs, and balancing the amount of debt with other factors, including cash flow and equity capital invested.

One weakness that Kohn most often sees among restaurant owners? “There aren’t enough people in the restaurant business to manage their numbers,” he said. “You must have a good budget to know what you are looking for.”

If the business owner knows how much money is needed in the long run, and how much profit (or cash) is left to make loan payments, then getting a loan will be much easier. Kohn said he had helped secure debt from various sources, but the basics were the same – to be able to borrow money, you had to be able to show how you would repay it.

Where to Look

When it comes to finding lenders, it helps to think broadly “We’ve dealt with banks, as well as a ton of private sources, ranging from [commercial finance] institutions, the SBA, friends, family, angel investors, and other high net worth individuals,” says Kohn.

Each source of capital has its own advantages and disadvantages.  Banks and commercial finance lenders tend to have higher rates of interest, while individual investors may …

Continue reading

Expert Loan Advice for Your Next Car Purchase

Expert Loan Advice for Your Next Car Purchase

These days there is plenty of loan advice available to consumers. It is a good idea to make use of this expert help to ensure you are making informed decisions about your next car loan. The auto finance market is big and complex and it can be too easy to make mistakes if you are new to the game.

Car Finance

Buying cars using finance products can work out very well. Finance is not as readily available as it was before but there are still many options that can be tailor-made to meet your individual needs. It is no longer always the case that you will be better off using your savings to make a car purchase. You may find that taking out an affordable loan and leaving your savings earning you interest could be better for your finances overall.

Make sure you check your figures carefully though and get as much loan advice as you need to work out the best options for you.

Comparing Products

You do need to spend time looking at the car finance market. There are lots of great deals available but not all of them will be able to offer you the features you may need. It is important you get professional loan advice before you sign any new agreements. The costs of car finance packages can vary significantly and you could end up spending more than you need to if you are not very careful.

A professional loan advice service will be able to help you look at your options. This will include products such as bank loans, credit cards, mortgage advances, dealer finance and so on. Each of these products has pros and cons. Getting the right loan advice can help you to avoid those finance deals that will be unsuitable for you and make sure you get the best deal for your budget and requirements.

Go Online

There is plenty of expert loan advice available online. This is a very convenient way for you to find out more about the car finance market. You can visit loan advice websites any time of the day. This means you will not have wait until standard business hours to find answers to your questions.

Online loan advice services can provide helpful web pages that cover a number of different car finance issues. One of the most useful tools available is the car loan calculator. This simple online resource allows you to compare car loan deals at just the click of a button. This way you can find out what they are really going to cost you so that you can cut through the marketing hype and make a more informed choice.

Go online today and find out what you need to know about car finance.…

Continue reading

Discover How YOU Can Become a Successful Investor – Even On Your Current Salary

Discover How YOU Can Become a Successful Investor - Even On Your Current Salary

Now you are making money from your salaried job or Business. What do you do with the money? Do you spend it all? Or are you looking for how you can make the money work for you to earn you more money? If you are what I think you are or would want to be – a savvy entrepreneur – I want to believe you will want to put your money to work in order for you to earn more money. You want to truly be above money problems. This is where this piece comes in handy for you.

What kind of Investor are you?

For those who already have the money to put to work, I would broadly categorize them into the following:

1. Cynics/Pessimists

These are those who come up with all kinds of reasons why investing does not work. This group of people end up never getting down to investing. They may know all there is to know about investments but always convince themselves that the time is either not right or that other parameters are not in place to invest yet. I have a friend who, even though he has a degree in Economics, belongs to this group.

2. The Gamblers

These ones see investing as a chance thing. They would rather go for an investment where they are promised a bigger than normal returns than look before they leap.

3. The Smart Investors

These are informed about the rules and principles for investing and they follow them clearly. They take calculated risks where necessary. They understand their risk nature and stay within it. They seek as much information as possible to aid their prudent decision making. They are focused and cautious. They understand the markets well and know when opportunities arrive.

Characteristics of Successful Investors

They have a high level of determination to succeed. They are not pessimists or cynics.

They develop a deliberate strategy for success. Where a system they develop work well, they keep on refining it and applying it consistently.

They do not let market downturns or economic downward spiral deter them.

They look past previous failures or wrong decisions and look forward to positive futures.

They have good control over their spending. They refuse to spend all they earn but are wiling to reinvest their earnings.

They are goal oriented.

Traits you need to possess to be a Successful Investor

A desire and commitment for investing.

Ability to plan your investment goals.

Ability to seek out information (facts & figures) and analyze them for profitable decision taking.

Ability to take calculated risks.

Possessing a long-term perspective rather than seek to make gain only on the short run. You must do away with “get-rich-quick” thinking.

Ability to take a systematic approach to investing.

Being skeptical about fads.

Making investing a habit.

Patient for the long-haul and not panicked or disturbed about unfavorable news.

Not putting all eggs in one basket but have a broad mix quality investments.

Knowing that downturns in the …

Continue reading

How to Invest in an Initial Public Offering and IPO Investment

Are you wondering which part of the market today is the most profitable market area to place your funds? If you are looking for the most promising market area for investors, you certainly have to investigate the potential initial public offering / IPO opportunity.

As you might already know, IPO shares present a very unique opportunity for anyone investing in the open market. If you have the opportunity to invest in one of these stocks, you will be able to buy investments before the entire market finds an opportunity to do so. For this reason, you can be sure that you entered the stock at a very good time, because the company will experience a significant surge in the amount of recognition received from the market as a whole.

How to Invest in an Initial Public Offering and IPO Investment

Although IPO shares are generally a pretty good investment in terms of the time of your purchase, you still have to investigate several factors to ensure you enter a valuable investment. The basic premise of your research will be based on revealing whether shares are sold at two high prices or not and whether shares will increase in value over time.

As you might already know, IPO investments are often the most difficult investments to assess. On many occasions there is a limited amount of information relative to company operations, as well as a lack of data on how the public will respond to the company’s stock offering.

This is why you naturally have to access as much background research as possible about the company. As you find more information about the company’s background, you increase your ability to assess the overall value of the opportunity.

A good idea to base your research on is the fact that companies issue IPOs to get more capital. Most of the time, companies utilize new sources of capital for expansion activities. There are some circumstances in which companies will only use newly available funds to reduce the interest cost costs they have to pay from the capital they borrow, but for the most part, companies use the newfound capital they have collected through IPOs for expansion activities. If you can predict that the company will carry out massive expansion activities after releasing their IPO, you will be able to easily assess whether the company increased its overall value as a result.

The fact that the company is trying to raise capital for expansion is certainly a good sign for investors, but it should not be your only source of information for a decision whether you should buy shares or not. You must remember that the fact that companies increase capital to invest in their operations is only in the planned stage when the initial public offering / IPO is released to the public.

The best way to estimate the overall return that you will see with your investment is to make an effort to predict where the capital of the increasing company will be invested. If you can judge that a company will invest …

Continue reading

Female Entrepreneurship and Venture Capital Investment

The world has changed. Women are getting more absorbingly occupied in the world of entrepreneurship today. This is because many women tend to invest more conservatively than most men when talking about financial matters whether within the four walls of their home or in the real world outside. Furthermore, women were always seen as being domestic, pious, moral, pure, gentle, kind, graceful, and beautiful. If a woman was placed in a different situation, she would always know how to compose herself even in a toughest situation.

antique Image1

In the past century, women have always been present in the work force as business managers or even business owners but not quite in significant numbers. However, in the recent years, the concurrence of legal, educational, demographic, and social development have begun to move women into the prevailing direction of corporate management and entrepreneurship as well as in venture capital investing. Accomplishing their dreams way up to the corporate ladder while fighting gender discrimination is a common life thread mostly seen among some of the most successful and famous women in business. And these women we see as powerhouses in the business came from humble upbringing.

Women also run companies differently compared to men not just in the lifestyle business but in employing people. This is because women are more deeply perceptive and can better suppress negative emotions. They are more likely to display good leadership because of their higher emotional intelligence. Women and men may have similar career aspirations, advancement strategies, and barriers to success but they have differences in the types of barriers and how they balance their work or life responsibilities.

The leading women of entrepreneurship today envisioned to make a difference to the global awareness and culture of entrepreneurial women in business. Amanda Steinberg, a 33 year old female venture capital investor, was able to raise venture capital worth millions at such a very young age. She started working as a Web Programmer more than 10 years ago and she saw how many unstable startups were raising millions. She knew she would not stay forever running a software company’s satellite office, so she started to look for a big and fundable idea. She quoted, “If so many people were successfully raising money for mediocre ideas, I figured I stood a good chance with a great idea. I at least had to try”.

Monica Dodi, CoFounder and Managing Director of The Women’s Venture Capital Fund, is an international, multilingual new media entrepreneur with a proven track record in creating, launching and building highly successful global brands. She founded several highly successful companies and even negotiated numerous licensing deals with Fortune 500 companies. She co-founded MTV Europe that later became the fastest channel in the continent. She joined Walt Disney Europe, and ventured a paper product business with a Disney license which was later acquired by American Greetings.

She helped Warner Bros launched television channels worldwide and was recruited by Brandon Tartikoff as CEO, to launch an AOL’s Entertainment Asylum which became …

Continue reading