Currency Translations in Financial Management Historical Rates versus Dollar Overrides

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One of the best times to look for improvements in your financial management application is during an upgrade. A good place for global companies to start is how the application is handling translations for multiple local currencies. Recent experience has shown me that companies can realize immediate benefits by taking a second look at currency translations and how they are set up.

Hyperion Financial Management, for example, does a great job with out-of-the-box functionality to perform currency translations. Generally, the balance sheet is translated at the end-of-month rate and the income statement using an average rate. Set up is easyassign a currency to your entities, enter the rates, and the system does the translating.

What happens, though, when you run into translation requirements that are outside of the capabilities of the out-of-the-box functionality? For example, accounts primarily in the balance sheet. The activity in these accounts is always translated on the date of the transaction at the spot rate. The translated amount is then added to the translated beginning balance to get the new translated ending balance. These accounts usually have little activitymaybe a few transactions per year if anyhence this type of activity is one that is handled differently.

In my experience, there are two methods available to handle this type of translation:

1.Historical rates
2.Dollar overrides

Historical rates require that you set up additional rate accounts and add rules so that target accounts will use the historical rate accounts during translation. A blended rate is calculated for every point that a translation needs to occur. The blended rate will need to be updated for any transactions that occur.

Dollar overrides require that you set up an account for each one that will require translation at a rate other than the end-of-month rate. Instead of entering a rate in these accounts, the actual amount in dollars is entered. You then need to add rules to override the amount that is translated using the default translation rates with this dollar amount.

So which method is better? Tough to say. However, given the struggles Ive witnessed clients undergo when it comes to updating the blended rates every time an entity hierarchy changes, a new transaction occurs, or when you want to force a translation into dollars at a new point on the hierarchy, my vote stays with the dollar overrides. Heres why: If the hierarchy changes, the dollar override accounts still have the proper amounts that will aggregate and be available wherever the translation is done. You can build the process so that new overrides can be added with only a metadata changeno changes to the rules required. And you can set up overrides so that the override amount will roll from period to period automatically and only be updated when a transaction occurs.

Even though I vote for dollar overrides, Id love to hear any ideas/experience with either option, including what approach others consider to be best practice in financial managementhistorical rates or dollar overrides?

Posted in: Finance \ Tagged:

The Center of Excellence Tomelloso Companies Enhance the Mechanical and Metal

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The government led by Maria Dolores Cospedal has provided more than 3.1 million employment workshops in the province of Ciudad Real

Spain, July 19, 2013 – The Minister of Employment and the Economy of the regional executive, Carmen Home, said that the center of excellence that the Government of Castilla-La Mancha launched in Tomelloso by the School of Industrial Organization, will help empower businesses of mechanical and metal sectors.

Home, during a visit to Tomelloso employment workshop on home help, recalled that the development of the seven centers of excellence in our region have a funding of 2.5 million euros and help to encourage innovation in our region in each of these sectors.

Future Center of Excellence, according to the minister, is based on the Youth Employment Plan and will be dedicated to the metal sector where the province Tomelloso Real City have a very important role. In this way, noted, new companies setting up in Tomelloso will be more competitive and make the business continue to give good news to the region.

In another vein, the Minister of Employment and the Economy has stated that the program Castilla-La Mancha region of entrepreneurship, has a budget of five million euros to promote entrepreneurship projects in our region.

In this regard, he announced that the government led by Maria Dolores Cospedal launched in Tomelloso – in collaboration with the city-one of the 48 courses of senior management for entrepreneurs, with the aim of contributing to economic recovery and employment in the province, Castilla-La Mancha.

Employment and Entrepreneurship workshops

During his visit to the workshop home help that is being developed in Tomelloso (Ciudad Real), the minister said that our goal is that the ten students who are conducting this training can carry out a business initiative.

In this regard, he said employment workshops and entrepreneurship that are developing throughout the region, 25 of them in the province of Ciudad Real by 3,115,000 euros investment made by the Government of Cospedal do not end in the formative period as a Upon completion of the classes, students will receive extensive tutoring they can use to turn your business venture into a thriving business capable of generating employment.

Home has insisted that the goal from day one we set in employment workshops and entrepreneurship is to be projects that trigger the development of the regions, generate wealth and therefore jobs in our region.

He highlighted that we have always prioritized the development of services that have a career in our towns and cities, such as the case in Tomelloso home help, for which we have contributed financially with funding of 112,246 euros.

Also pointed out that education is a priority to ensure that our young people can join the labor market to achieve success from self-employment as well as the investment of more than 352 million active employment policy, in order to ensure that our region can look forward to a more promising than it did in the past.

Finally Home stressed that Tomelloso is a city of entrepreneurs being able to make the best of herself to gradually continue creating jobs and accelerating recovery in our region.

Press Contact: Consejeria de Empleo y Economia Media Relations Consejeria de Empleo y Economia Address: Avda Ireland No 14 512-212-1139 http://www.castillalamancha.es/gobierno/empleoyeconomia

Posted in: Employment \ Tagged: , , ,

Property Investment Vs Property Speculation

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Most people get Real Estate wrong for two simple reasons.:

1. They don’t understand the difference between an asset and a liability
2. They don’t understand the difference between investing and speculating

The broke majority live under the misguided belief that their family home is an asset. An asset by definition is Something valuable that an entity owns, benefits from or has use of, in generating income. The key is the words generating income. By that definition your home is not an asset, it is a liability. It does not generate income, it costs you money.

The broke majority will borrow as much as they possibly can, to buy the most expensive home they can afford, in the mistaken belief that this is a good investment. In fact they are are burdening themselves with the worst kind of debt. Long term, expensive, non-deductible debt that produces no income in return. The same kind of debt that lead to the housing collapse in the USA.

Successful investors understand this crucial point. Your home is not an investment.

The Business Dictionary defines an investment as Money committed or property acquired for future income. Now some will argue that an investment doesn’t have to produce an income and cite as an example gold bullion, collectibles or share futures contracts. By definition, none of these are investments, they are items of speculation. They can go up in value or, just as easily, go down. You are speculating on the future trade-able value, not investing in the inherent value of the income an asset represents. Tens of thousands of homeowners around the world discovered in 2009 that home values can fall and can fall dramatically and disastrously.

If you buy a house to live in with no income return expected from it, but in the hope it will increase in value, you are speculating not Investing.

If you buy a house to rent out, you are investing. The Australian government has long recognised the difference and that is why they allow you to claim the expenses relating to a rental property, including interest payments, as a tax deduction but do not allow any deductions for expenses incurred in buying a house to live in. In other words, the government is willing to share the risk of investing in income generating real estate because the risks are lower than tying up your money in your home.

Smart investors have a small or no mortgage on their own home and the majority of their borrowings are for rental property because that is the lowest risk strategy. They also get the best advice they can on quickly reducing the mortgage on their home.

Posted in: Investment \ Tagged: ,

The Dos And Donts Of Starting A Wholesale Clothing Business

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The wholesale clothing industry is among of the fastest growing industry today. May it be off or online, the wholesale clothing business has become the largest trend around the world. This is because of the reason that people always needs clothes, it is both a necessity and a luxury.

Majority of individuals that set-off and start their own wholesale clothing businesses are those that already own a clothing retail business. These people are those that wanted to expand their businesses and earn more by selling their stocks in bulk.

Though these kinds of people have the necessary experience in handling a business, a wholesale is still a different business that involves processes which are distinct from those of retail. One of which is customers. Instead of selling to the public, wholesalers engage a business to business system in which wholesalers sell directly to other businesses such as retail businesses, retail distributors, exporters, and other wholesale businesses.

But other than customers, there are also other processes that make a wholesale business, in this case a wholesale clothing business, different from a retail business. Having no knowledge about these processes could lead the business to bankruptcy. So here are some Dos and the Donts of starting a wholesale clothing business.

Choosing a Storage Location

Do: Choose a storage or warehouse located near the manufacturer and retailers. Choosing a location that is physically near from a supplier or retailers can save more time and money when in comes to transport. This is particularly important for those that are only starting out.

Also, check if the cost of the rent or space is applicable for the amount of capital allotted. Do a research about several locations, if the place is cheaper than the others, and perfect because its physically near the market, then that is the most appropriate location.

Dont: Though the location is cheaper and near to the market, if the area and the location itself arent secure, then that is not the perfect place to start a wholesale clothing business. Dont start a wholesale clothing business on a location that offers too little or no security. Also, check if the location offers some laborsaving to material handling, warehousing methods, or inventory procedures. If the location cannot provide those, then the better thing to do is to choose from another place.

Order Flow Procedures

Do: Do a systematically planned order flow system. Careful planning of the order flow system is essential for starting any wholesale business. This is because when the orders from the customers start to come in, the procedure in which the stock is processed must be done thoroughly and systematically. This is to avoid unnecessary mistakes when the retailer phones in and inquire about their stock and finds out that their order will be coming late.

Dont: Avoid making the mistake to not update a customer of their order. Make sure that they are filled in with the information they deserve about their stock. So as much as possible, give them the information they need, and dont delay them.

Customers

Do: Do a list of those customers that you have failed to get. Apart from making a list of your own line of retailers and wholesalers, its also important to make a list of those that you failed to have. This is to keep track on their activities such as if they are still loyal to other wholesaler or have already left to find another one. Or if you need another retailer on your wholesale clothing business, you could ask them again to join you. You might be surprised and find out that theyre now willing to join.

Dont: Dont include those that cant show any supporting documents on their business. When looking for a dealer or distributor, make sure that they have legal documents that permit them to resell your products. This can ensure your businesss security.

Competitive Credit Policy

Do: Do a research about the competitiveness of giving credits. Giving credits to retailers and other customers is a common thing when it comes to wholesaling. It is part of every wholesalers strategy to lure customers on their business, especially on a wholesale clothing business. This allows them to buy their stock and pay for it when they have enough cash to pay. Setting up a competitive credit policy could give any wholesalers an edge when it comes to attracting customers to their business.

Dont: Dont give any credit to those customers that cant represent a complete documentation, papers, and permit for their business. Make sure that the customers are capable of paying back the credits they took. This is done by checking up on their references. Check if they were able to pay on time and complete. If they dont have the papers or any other supporting documents of their recent credit, then dont give them any credits.

Maintain A Close Contact with Retailers and Other Customers

Do: Maintain a good relationship with customers. Maintaining a good relationship with customers is the one of the most important aspect that ever wholesaler should practice. In a wholesale business, in this case a wholesale clothing business, keeping in good terms with customers can produce good results that may help proliferate the business such as loyalty and trust.

Talking with them, listening to their suggestions about the business, asking them on whats on the demand in clothing, are the ways that can insure them that you are concerned about the success of your business and of them. This builds up the credibility of a person as a wholesaler when it comes to doing business.

Dont: Dont let the customers feel as if they are just things. Mistreating a customer by letting them face a secretary or talk to answering machines could degrade their loyalty and trust to the business which could then lead them to leave. Lack of communication could also affect the wholesalers credibility in handling a business. So make sure to communicate with customers and talk to them personally as much as possible.

Posted in: Business \ Tagged: , , ,

Enjoy A Career In Nursing

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Nursing degree means bachelors degree in nursing that enables you to enter into a nursing profession with requisite qualification.

If you are in nursing profession you must ensure to take admission sooner or later into online associate nursing degree program, in order to enhance your path to career progression. In fact without a nursing degree your career growth will always remain limited with no scope for progression. There are many areas of nursing nowadays, which means that qualified nurses can enjoy a choice of career.

The availability of online nursing degree makes it, to move into a specialist area of nursing. To learn more about our online nursing degree programs, you should surf various websites of colleges to know more about the courses being offered.

Nursing degree offers a high quality education to those looking to enhance their skills and knowledge, and to improve their career prospects. There are various universities and colleges that offer a variety nursing programs that may fit to your needs. These online nursing degree programmes therefore makes it easier to gain the necessary qualifications to progress your career in the nursing profession.

The nursing degree in fact facilitates you to upgrade from online associate nursing degree and therefore allows you to gain the necessary qualification to enjoy a brilliant and promising career in nursing and to move into a specialist area of nursing. In order to become a registered nurse in any state you need to pass online associate nursing degree from a reputed college. The only difference between a regular and online nursing degree program is that, in the case of latter, you do not meet personally your fellow students or instructors but the interaction is through online discussions and conferences and has rather proved equally beneficial.

The course content is constantly revised by online nursing schools, in keeping with the demands of health care industry. Therefore you must go for a good online nursing degree programme, to be a part of this rewarding and challenging profession.

Posted in: Career

Loans For Small Business- Interrelated Roadmap For Help For Small Business

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Business concepts are everywhere if you know how to recognize them.
Regularly they simply go unrecognized as the thing that you’re on the
lookout for and isn’t there, will generally represent a chance for
someone wanting a business whether or not that someone isn’t you.As the
world constantly changes, so does the spectrum of work. Many people have
turned to the web to make their money, and with good reason. There are
only a few limits to available profit making outlets. Through your own
creativity or providing a service that a web Company may need you’re
able to earn money in an online Job.

If you are hunting for info related to loans for small business
or any other like small business accounting,finance, business telephone
services or small business start up loans you have come to the right
article. This piece will be offering you not just general loans for small business data but also explicit and beneficial information. Like it.

Advertising
that one ( or more ) celebs will be in attendance can be a good method
to get the notice of your audience. You could have a special sale, with
the discounts offered only while the celebrity is in-house, to galvanize
the masses even further.

Without a proper scheduling system and
routine many entrepreneurs will experience overmaster and burn out. Many
a closeness, relationship, and marriage have been negatively impacted
by a business person that was unable to balance work load with private
relations.

BREATHER — As you pause on studying this article I am hoping it has so far provided you with insightful information related to loans for small business. Even if it hasn’t so far, the remainder will, whether your interest is loans for small business
directly or other related angle such as grants for small business,
hotmail, government grants for small businesses get a free grant, home
business.

Without
a proper scheduling system and routine many entrepreneurs will
experience overwhelm and burn out. Many a comradeship, relationship, and
marriage have been adversely impacted by a business person that was
unable to balance work load with private relations.

Remember,
advertising is an investment. It isn’t meant as a get rich quick
venture. Whether or not you advertised in a newspaper with one million
and readers, your ad isn’t going to deliver massive overnight results.
People having an interest in this kind of advertising can see great
success but the plan should be budgeted effectively and considered a
long term strategy.

We found out that many people who were also
hunting for info related to loans for small business also searched
online for related info such as smallbusiness ideas, citi cards, and
even federal grants for vet owned small business free
grants,entrepreneur.

A home business that taps into this audience
with an easy short promotional video may find its earnings increase
enormously. And once more, the way in which the process works is fairly
simple.Scheduling is a system for completing vital jobs before they
become imperative. A correct schedule contains a beginning, middle and
end. It is not a task list nor is it correct resource management, though
it can help with both. Creating a useful schedule and routine assures
you align your business with your life, the folks you work with, and the
friends and family that you love.

Posted in: Small Business

How Workplace Harassment Lawsuit Plaintiffs Can Get A Lawsuit Settlement Funding

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No-Risk Lawsuit Settlement Funding for Employment Discrimination Lawsuit Plaintiffs.

Employment discrimination lawsuit cash loan or settlement advance funding is a non-recourse cash loan provided to a plaintiff involved in an employment discrimination or workplace harassment lawsuit even before his/her lawsuit is settled or resolved.

Most of plaintiffs involved in employment discrimination or workplace harassment litigation or lawsuit do not realize that they can get lawsuit cash advance loan or settlement funding before their case settles. It is a contingent transaction in which cash loan is advanced based solely on the merits of a pending employment discrimination lawsuit. Lawsuit loan is paid back only upon successful verdict or settlement of the lawsuit. If the employment discrimination or workplace harassment lawsuit plaintiff loses case, the loan is never paid back to the lawsuit loan funding company.

What is Employment Discrimination?

In our country U.S., employment discrimination occurs whenever an employer or its representatives adversely single out employees or applicants on the basis of age, race, gender, sexual orientation, disability, religion and a variety of other reasons.

According to the U.S. Equal Employment Opportunity Commission (EEOC), employers can not discriminate against you in any aspect of employment, such as:

Hiring and firing Compensation, assignment, or classification of employees Transfer, promotion, layoff, or recall Job advertisements Recruitment Testing Use of company facilities Training and apprenticeship programs Fringe benefits Pay, retirement plans, and disability leave

The EEOC reported that it received 82,792 job-bias charges from private-sector employment in fiscal year 2007, the highest number since 2002 and the largest annual increase (9%) since the early 1990s. The most notable increases were for race (12%), retaliation (18%), age (15%) and disability (14%) discrimination.

If an employee experience employment discrimination or workplace harassment then he/she has the right to go for a legal resolve by means of employment discrimination lawsuit or claim. Depending on the kind of discrimination, the lawsuit will be called as followings:

1. Age Discrimination Lawsuit, 2. Racial Discrimination Lawsuit, 3. Sexual Harassment or Discrimination Lawsuit, 4. Gender or Sex Discrimination Lawsuit, 5. Sexual Orientation Discrimination Lawsuit, 6. Disability Discrimination Lawsuit, 7. Religious Discrimination Lawsuit, 8. Pregnancy Discrimination Lawsuit, 9. Workplace Harassment Lawsuit etc.

David vs. Goliath:

Mostly the legal battle between employment discrimination client plaintiffs and defendants is like a clash between David vs. Goliath. Workplace Harassment lawsuit cases are very complex to handle and to resolve and if it is against a major corporation their attorneys will be able to delay lawsuit judgment for years. Even if, law is on your side, deep-pocket defendants can buy time with legal ploys and delays, and maneuver to frustrate the plaintiffs. They exploit the cumbersome process of law.

You will agree that justice delayed is justice denied.

Most of the victims of employment discrimination may have lost their jobs. The plaintiff/victim has trouble paying his/her mortgage, rent, car payments, or other living expenses; while waiting for the settlement of the lawsuit. Many of them may be one or two payments away from foreclosures. They need cash money now.

How Employment Discrimination Lawsuit Loan or Settlement Advance Funding Helps?

Employment discrimination lawsuit settlement advance funding provides plaintiff, the cash loan so that their attorneys have more time to negotiate the best possible lawsuit settlement for their pending employment lawsuit or legal claim. By offering appropriate lawsuit cash funding or settlement loans, a reputed lawsuit funding company enable the plaintiffs to resist financial pressure to take the first low ball offer made by defendants attorneys.

Once the plaintiffs involved in employment discrimination litigation dispute get interim lawsuit funding or loan, it can be used to cover credit card debt, mortgage payments, medical bills and other living expenses. By helping plaintiff client through a difficult period, lawsuit loan funding company also give the extra time to negotiate a larger settlement.

The practical value of available cash money is at maximum, when you are in financial distress.

Employment discrimination litigation process usually causes intense financial stress and mental anxiety under the best of circumstances. It can cause lot of financial strain from lost or reduced salary or wages or tapping into cash reserves. But employment lawsuit settlement loan or funding will ease or alleviate the pressure and will make it a less tedious process. The cash advance available from a lawsuit loan will make it easier or less difficult and will contribute financial strength to reduce the economic anxiety and financial problems.

An employment discrimination or workplace harassment lawsuit cash loan or settlement advance funding allows you to leverage the expected settlement from your case to obtain the cash you need now. Lawsuit cash funding or loan eliminate the need to accept a minimal settlement amount due to personal financial pressures, and get the fair and just settlements the plaintiffs deserve.

Posted in: Employment \ Tagged: , , ,

Online Small Business Startup Without Investing Cash

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One
place you can easily succeed with a small business startup is on the
internet. Some people think that the internet is meant for the already
established companies, but that is not the case. Today, average people
are making it big with great business ideas. To top it all up they are
doing so from the comfort of their home. The big question you may ask
is, how and what do I need to launch a small business startup online?

Research
is very crucial if you are to succeed doing business online. Whether
you have cash or not, choosing a niche to venture into will determine
your success. The internet is all about content; it would be advisable
to go for a niche that is not so competitive. Once you have decided
which field you will venture in, then you can start working on having a
website and if you do not have cash then you can launch a blog.

Many
think making money online is about having a huge capital, but you can
have a small business startup without investing a single dime. With a
site like Blogger.com you can create a free blog and then post content
that is helpful to your market niche. Learn for the experts how to
optimize your blog so that search engines can rank you high. Once you
have content you can then monetize your blog.

Monetizing your
blog is easy and free; there are great sites like ClickBank and
PayDotCom where you can pick affiliate products to sell on your blog.
You can also include Google Adsense links and make money as people click
on these advertisement links. Amazon is also a site where you can load
products that are related to your content. All these are free to enroll
and install thus making small business startup online very easy.

Though
you will not require money to invest in such an online business, there
will sure be a price to pay. You will need to invest time in learning
free online marketing strategies. Hence working hard and possessing a
strong determination to make money online is paramount.

Follow the links below to harness more insightful tips on online small business startup.

Posted in: Small Business \ Tagged:

Preparing For and Making a Career Change

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In my youth, I observed that, in England at least, most people
wanted to get out of their jobs. Their “career”, whatever it was, only
existed to get a regular income. The millions of people who did the
football pools, and later the lottery, were a testimony to the “let me
out of here” dreams of the majority. “Win the pools, and retire.”

Times
may have changed in general, but the fact that most people are not
content with their jobs has remained unchanged. Career, employer or job
change, or early retirement, are in the minds of tens of millions of
people across the world. Only a small minority will ever actually go
full out for a career change; it is far too easy just to plod along
doing the same old things in the same old place.

However, some
people are more serious. These are the people with “get up and go” who
actually do get up and go. These are the people who really do change
their working lives, sometimes drastically.

Why Do Some People Want to Change Careers?

There are many possible reasons for wanting a career change. The following are just a few of the more common ones.

1.
To some people, being in the same job, or even the same type of job,
for too long is just unthinkable. I certainly fall into this category,
and personally think total career changes can be a vital contributor to a
satisfying life. I always want to learn something new, and do something
new, once I have mastered what I was doing before. New challenges are
an essential part of every day life.

2. Midlife career changes
might be the result of a sort of career midlife crisis. This can
particularly be so for someone who has always done the same job, and
suddenly realise their years are slipping away and they have really done
very little with their working years.

3. Dissatisfaction with a current employer, either in terms of recognition, prospects or pay.

4. Boredom is a common cause of wanting a career change.

5. Lack of fulfilment in the current career or employment.

The
above are some of the broad reasons people may seek a career change,
but each individual is likely to have a different mix of reasons to
consider changing their career.

Tips For Preparing for a Career Change

There
are many sources of career change advice, both online and offline.
Sometimes this can be given on an individual basis, or just in the form
of written material which you can consume at your leisure. As a career
is a personal matter, and all individuals are different, then pesonal
consultation is better by far. However, advisors are individuals too,
and the advice may vary from from career counselor to career counselor.

The
quality and quantity of career change advice available to you offline
will vary greatly between countries and localities, and you may find
that some of the online advice is, at least in part, to one country,
particularly the US. However, the following career change tips can apply
to anyone, anywhere, and are based on my own experience; they may not
appear anywhere else, might be considered unconventional, but are
designed to get you thinking and planning well in advance for one or a
series of career changes:

1. Travel as widely as possible. I do
not mean go on vacation with a million other holidaymakers on a well
trodden path, but broaden your mind, experience and understanding
through travelling in other countries of various cultures. It is best to
travel alone for maximum experience. With hindsight, I am sure that my
travels as a 20 year old and younger helped to give me the flexibility
and adaptability to make a sudden move from one life direction to
another. When travelling freely, you can always go just where you want
to go, and the same can be true of your working life, or careers, if you
have that flexible attitude from the beginning.

2. Most people have interests and talents that are
quite separate from their primary career ambition. Always try to develop
those skills and talents in parallel to your existing or imminent
career. The more skills you have, the more knowledge you have, the more
likely it is that, when the time comes to make a career change, it will
be that much easier.

3. When in a chosen career, always add new
skills and keep up to date with developments in that career. The
opportunity may come along for you to specialize within that career, or
diversify from it.

4. Plan your life in 5 year blocks. It is
amazing how much can be achieved and changed in 5 years. My own life and
working life bear little resemblance to even 7 years ago, and has
changed drastically in the last 4 years. Formulating a 5 year plan for
yourself at 20, 25, 30 and so on can be a great help in getting your
prepared for all sorts of changes and developments. When formulating
that plan, consider your career options during that coming period, and
what you can do over that 5 years to prepare yourself for a career
change beyond that 5 year period.

5. Have a program of self
improvement to increase your confidence and prevent or overcome fear.
Many people stay in the same job far too long, because of fear of
change. Using meditation and relaxation techniques can help in this area
of your life.

6. Keep control of your finances, and develop a
financial success system . Always budget effectively, and never spend
beyond your means. Always think in terms of building your assets. Saving
from your monthly and income, and learning to invest wisely, can help
you build wealth while most of those around you are borrowing,
overspending, and digging a financial grave.

Why is a financial
success system important when it comes to career change planning? Poor
finances can be an inhibiting factor in making a career change. If your
finances are in good shape, and you have adequate reserves, you have
more time to switch successfully to a new career, even a new way of
life. Financial fear can be a big drawback to making a career change.

By
adopting some or all of the above tips, you should find yourself better
prepared in the future to make a career change. Hopefully, that career
change will be one that has evolved from your own desires, your own
plans. However, sometimes career changes are forced by redundancy,
technical developments in your chosen career, companies being taken over
or going bust, outsourcing or other change in your working environment.
Be prepared.

Posted in: Career \ Tagged: ,

How Will You Convince A Prospective Investor To Fund Your Business

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As I have written before, investors are risk managers and are very careful and selective in what companies they make investments. Now that you have a list of investors that you are contacting for your company, you need to prepare to answer their tough questions. Investors will want to know why they should invest in your company. It can be very difficult to convince them if you dont have everything ready. Furthermore, you need to have to answer the three major questions that are mentioned below correctly. This is not easy to do and I highly recommend hiring legal counsel and accountants to get all the legalities and numbers correct before you begin to meet with your investor.

How much capital do you need and where will it go? This is the question that when answered right is the million dollar question. Investors want to see how the money they invest will be spent. You must convince the investor that your management can manage the money that is invested correctly and efficiently to generate the revenue and profits that the investor is looking to get from his investments in your company. The point is clear. He wants to see numbers. This is why I highly recommend you hire an accountant who can manage the money properly. You also need to have a plan laid out with milestones that are set which the investor has to agree with and you need to give an approximate time when each of these milestones that are to be met.

Once an investor finds that all the answers to the three questions are correct, he will give you your investment in a series of tranches. Each tranche will be given on some set conditions, which are all set to meet each of the agreed upon milestones. This is why you need to be good with your numbers, and your accountant should be competent in budgeting the money. With every tranche, you need to have a percentage for employee and staff salaries (which also includes the salaries of all the management), product development, real estate, etc. If your numbers are not right or realistic, you will not get funded.

What is the forecasted valuation of your company? This is a question where realistic numbers and projections really count. A companys valuation is basically the projected value that a company can gain in the future as it functions in its relevant market. Though investors love to see high figures, its not wise to hype up your figures and have a higher than realistic numbers. Investors can see right through that. For example, your relevant market may be a multibillion dollar market, your company will not be worth billions of dollars, at least not for a while, unless your product or service meets a demand that has not been met. This case, however, is rare. You could make a few million dollars, but your company will not have the same value as the entire market, thats impossible. So how can you get the right answers for this question?

When you are preparing your companys valuation data, you need to have projections that are as accurate as possible and you need to be prepared for how to answer the investor when he asks if your profits drop below ten percent. This is very important, because investors have their market analysts who constantly analyze markets and are always on top of the latest market news and forecast the future based on current market trends. You need to do the same and you should have people who can analyze the markets just as effectively as the investor does. You need to be able to see eye to eye with the investor. Being well prepared for this question can give you the biggest chance of winning that funding.

How do you plan to exit? What do you mean by exit? Well, investors like to invest in a company for a certain period of time, say between five to seven years and then they want to exit and collect their profits. This is why you need to prepare an exit strategy. There are all kinds of exit strategies available, but even though they are needed, you should think more about building a valuable company than having an exit strategy. Investors can see the difference between an entrepreneur who wants to found a company simply for the sake of building a modest company and then selling it and an entrepreneur who wants to have a serious company and wants to be with this company for the long haul. This type of entrepreneur is more valuable to the investor, because a company that generates value and equity will provide greater profit for the investor and make the investor more interested in funding this entrepreneur. Furthermore, a company that generates value over time can also require less liquidation because the profits can be so big that there will be enough pie for everyone, both the investor and the entrepreneur. After all, an entrepreneur starts a company to have something for himself first. Investors are there to help the entrepreneur and to gain a profit from their investment from the entrepreneurs company. Investors have the same thing in common with entrepreneurs, that they both want to make money, the difference is that investors after a particular time period, will want to exit the company through some of the following strategies.

IPO or also known as an initial public offering is when a company prepares to go out to be publicly traded in the stock market. This can be a rather tricky exit strategy because there is a certain kind of capital involved in executing this strategy. When a company prepares for an IPO, it will need to get a special financing known as mezzanine financing.

Management Buyout is another common exit strategy that companies can liquidate. This exit strategy is when the management of two companies work together with the ultimate goal of the management of one company first gaining control of the other company by working with the management of that company and eventually buying that company out.

Leveraged Buyout is an exit strategy where the company is also bought out by another company, but in this case, the buyout is leveraged by the buying company from company debts and other financial deficits.

Whatever the exit strategy you want to go for, you need to keep in mind that your company should first and foremost generate value. That should be your first objective, and how the market goes and how your company manages in the market should determine your outcome.

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