Month: July 2018

How To Get Finances For Your Business

Starting your own business could be a terrifying experience. You may not be confident about how your product would be received in the market. However look at the other side and you will see that starting a business is actually very lucrative. It lets you offer a new product or service to the community. It helps you to form a legacy and at the same time gives you an opportunity to be your own boss.

The first and the foremost thing that you need to arrange for to start your business are adequate funding. Whether you have the money to invest in the business or you need to convince individuals or a company to invest in your business your business plan needs to be strong to attract likely investors. The plan should include the description of your company, the product line of your business as well as how you plan to increase sales and market your business. You also need to have a financial projection of your business. All this can let you get a loan easily.

Factoring should be considered

Factoring is when the company sells off its receivables at a discount that lets it get cash up front. This method is used by businesses that have a bad credit such as the apparel business. In this kind of business, the order has to get filled before they get paid. This is an expensive way to raise the funds for the business and the company that receives the receivable pass a fraction of the total value. And this is why the companies have started to look for alternative ways of financing. It is being tried to make factoring competitive.

Have a strong business plan

As already mentioned you need to have a business plan that is strong and should clearly portray what you plan to do in the next three to five years. There are several components that need to be included. The documents should be such that you can change it based on the business abilities.

The most important part of a business plan is that the summary should be thoughtful and should capture the complete business plan. The description should focus on the details of what the business does and why is it different from its competitors.

A market analysis in the business plan would let the investor have a clear picture of the outlook of the company and also about the potential of market share.

The business plan should also have the management and organization structure with details of ownership and management as well as qualification of the board members.

The next part of the business plan should have details of the products and services and also what kind of sales and marketing methods would be used.

Understanding the world of Crypto Currency

One thing which has struck the imagination of all, and fear for many in the financial world today is like accepting the existence of mermaids in the 21st century, and you would have guessed it right, is it money, is it a transaction or is it the future of currency system? Enter into the world of digital cash, a cryptocurrency which is a phenomenon no less discussed than warmer topics like global warming, space junk and the rest.

It would be hard to accept that traditional banks are in for rolling out a white paper on the cryptocurrency, blockchain project and even acknowledge it as a mode of payment for the services. With so much of noise going around this form of digital currency whether to accept it mainstream, or still be cautious, many fail to understand the concept of Cryptocurrency.

What is Cryptocurrency?

It will be surprising to know that Cryptocurrency is actually an incidental product which was not meant to be discovered, it was the when the inventor of Bitcoin who till date is unknown wanted a peer to peer digital cash system to be introduced to the world to avoid double spending.

  • no central authority is there to monitor the digital currency
  • It is a trust-based system which can be easily transferred, bought and sold.
  • transactions, accounting are all a part of it, there can be no double spending as a central server keeps track of all the transactions before with the currency
  • is it out there on a public database where one can transfer it to their bank accounts and take liquid cash
  • however there are limited entries to cryptocurrency in the database and it cannot be forever changed without fulfilling specific conditions

How does it work?

With all said and done, how the whole process works out in the digital space is extremely technical and the basic technology used is p2p, which is used for transacting using a public key or password to access the digital account of the user and continue any particular transaction. As a medium of exchange, it has been created to store transactions electronically using encryption techniques which are verified at every stage before the currency is transferred, the bitcoin was the first digital currency to be released and there are many which have since then been developed and widely used. Keeping in mind the confirmation of any digital transaction which is only complete is a critical aspect in cryptocurrencies, once confirmed cannot be erased or reversed.