Fast Business Growth? Maybe You Should Slow Down.

A friend of mine actually made his business work. Just last month, he raised a total of £5000 in profit just on his own. His products were just hand-made with materials that he orders overseas. He gains a 20% profit on each of his products.

I was happy for him because his business was growing fast. Soon, he would need employees and specialised machines to help him do his job. 

Then it dawned on me, I don’t think it was really something good to have your business grow this fast.

He began his business working on the usual model for start-up companies. He had defined and created a steady growth plan for his business. He then endorsed it to a venture capital and intended to grow his business as quick as he could. 

The last step to his plan was to make his business stocks public.

Sure, you could grow your business fast, but that second step, endorsing your business plan to a venture capital, once they agree, you also agree to give almost half of your business to them. They may only care about their benefits for two to three years. This isn’t good especially if you just want money to grow.

As long as my friend could not find founders or investors who are interested in seeing the business grow within 50 years. The sad thing is that with quick growth, comes higher product prices.

Gaining The Confidence to File a Bankruptcy

Most people find bankruptcy a do-or-die situation. However, it really isn’t. Bankruptcy filing only helps you file your finances accordingly by liquidating some of your useful assets and giving you a set repayment amount paid regularly to ease your red-laden debts. Here are a few things to know to gain the confidence to file a bankruptcy.

1.    Acquired Assets

Bankruptcy is often the result of investments failing to deliver their profits. However, these investments, products, real estate properties or failed ventures, have a value. When surveyors come in to research your products, this will help reduce your overall debt.

 

2.    Banks Understand

Most consumers, particularly in the middle-class where bankruptcy filing is a common but untapped resource , think that this gives banks an edge against them and would be hounding their backs for the entire time. Consumers need to understand that banks do not discriminate against bankruptcy-filing consumers. They want their issue and money resolved, and bankruptcy filing is a quick way to finish the task.

3.    A Lengthy, But Surely Worthy Process

Filing a bankruptcy might be lengthy, but it helps you ease the burden of downhill financial spirals. If you don’t file for bankruptcy today you’ll be dealing with massive debt amounts that may take much more time if you don’t act on it.

The Basic Principles of Inflation and Deflation

In an economy like the United Kingdom, inflation is a very worrying term. Worrying, because this means that all the money a person saved in a bank is gradually decreasing in value. Add to this the decreasing interest rates to help grow the different sectors of the UK industry, and you have yourself some big trouble.

However, both inflation and deflation have something to do with the maintenance of the UK economy. 

Inflation increases the value and price of things while lowering the power of the sterling. Deflation is increasing the power of the sterling, but decreasing the development and growth of business, infrastructures and others.

The United Kingdom has the UK Treasury, which oversees the printing and production of currencies circulating in the United Kingdom. The UK Sterling is a fiat currency in itself.

A fiat currency is one where the government and other parties have very slight influence over the frequency the UK Treasury produces currencies. The Treasury must ensure that the currencies circulating in the country are not inducing any inflation or deflation.

In reality, the Treasury’s goal is to find the “sweet spot” that would enable good economic growth while retaining the power of the sterling in the UK. In this way the economy can flourish while its citizens are encouraged to spend just enough from their personal savings accounts.

The Trend of Money Values in the Future

The value of money heavily depends on the belief people invest in the currency. If they believe in its strength, it would gain value, and the more people outside the country believe in its strength, the more it gains value. To believe in the currency is to believe in the country’s economic capabilities; with better investments and high valuation of properties in an objective manner, currencies also increase.

However, as the world transitions into developing cyberspace and the internet is now culturally a part of our lives, money’s value can be transformed.

Imagine a world where your money could be accessed anytime in your own individual account using a smartphone or a specialised device. This is what Bitcoin had achieved. As the entire world continued to believe in the value of Bitcoin, the more it gained value.

Bitcoin’s decentralised nature made it volatile, but amiable as “miners” could just plow away at digital minefields, with coins progressively increasing in difficulty to obtain. Its value holds great amounts of dollars or pounds and is universal, because it is based in the internet.

As it gains worldwide recognition, many turned to Bitcoin because of its anonymous transaction capabilities. Given such, it helps avoid traces by officials and the government, whose banks are also under its regulation. Many see it as a throwback to the early years of dukes and duchesses, who had kept their gold in vaults, never decreasing in value. As gold was separated from numerous associations with currencies, the power of gold died, but still remained high.

It is possible that bitcoin and other forms of digital currencies will reignite the system of keeping gold and increasing its objective value not because of objective investments, but because of society deeming it as precious.

Three Impressive Ways to Earn in Rural Communities

Rural communities house the low-income earners of every country in the world. An investor willing to take a big risk could start a financing company and earn great income. However, an investor will need a great deal of trust and personal investment with their clients to make rural investments work. Here are a few ways.

1.    Unofficial Credit Union

Towns in the outskirts of countries are typically unregulated. However, they also have financial needs to fulfil. With virtually low to no-credit, no bank or financial institution is willing to provide financial assistance. Building an unofficial credit union in the area, starting with you as an investor to a sole proprietor that you have built a good, trusting relationship with, is a great way to start.

2.    Develop the Community

If you have enough cash on hand to start addressing some needs local townsfolk need, you could develop the community’s amenities. Mining towns, for example, need good clinics with ample supply in case of any accident or mishaps. Having an insurance company that answers to you, for example, is a great way to begin. As your company grows, you could register to expand your business elsewhere.

3.    General Financial Assistance

Some people in the neighbourhood might need money to repair or improve their properties, and that is where you come in. Setting up a good financial repayment scheme for financial assistance for anything, including medical assistance, vehicles and others, can help bolster the growth of your investment.

How to Know If You Are Being Scammed With a Cash-Advance Loan

Most entrepreneurs and bankrupt business owners view cash-advance loans as their last resort when they need to pull out their company from a tight spot. However, the cash-advance loan scams are still alive to this day. Loan scammers are known to prey on entrepreneurs with a very positive outlook about their business. Here are a few ways to know if someone is scamming their way into your finances.

1.    Exclusive Up-Front Fees

Up-front fees for no services rendered are already a significant sign about these businesses. However, if you are gaining about £10-15 million in loans, an up-front fee is normal. But you are only getting loans within £3 million or lower, and up-front fees are certainly unnecessary here.

2.    Alternative Lenders/ Merchants

Merchant cash advances motivate brokers to gain commissions paid up-front by the borrower. The legal broker is only motivated by the 20% commission they receive, but to the borrower’s end, they may or may not receive the third-party financing.

3.    Stuck

Most loan brokers will give you alternatives, or tell you that you might need time to think about their financial products. A loan shark will motivate you that they are the only ones that can help to get out of the fiscal cuff, downplaying or possibly bypassing the explanation of interest rates and other details of the loan.

How Your Credit History Affects Your Chances of Getting a Business Loan

Your puny credit card may be the answer to your business finance dilemma. Your credit card, along with other business loans, helps increase your credit score if you manage it perfectly. If your business also works with vendors who report to credit institutions, then your scores could increase.

During your non-entrepreneurial years, the use of a credit card under your name, and the management of this credit card, will already create an impact in your credit score. When you get financing for a new car or mortgage for your house, your credit score resets to accommodate your performance with the new financing.

 A start-up company still has no financial background, but lenders and vendors may consider financing the company based on the proprietor’s credit history.

A higher funding from your credit card can help propel your company a long way. As long as you have not missed a payment and you pay the exact amount regularly, lenders will improve your standing and provide financing for the improvement of your business.

However, as it is only personal credit, the loan may be quite limited, but it will grow as your business shows results through its invoices.

Tips on Comparing Insurance and Investment Benefits

Health insurance, car insurance, travel insurance, etcetera. With so many insurance products available, choosing one is quite a burden today. However, if you should compare between two or more products, here are a few things I look out for in choosing insurance for myself.

1.    What Do You Need?

When I was still in a business-processing outsourcing company, I assessed the risks in the job I’m taking. It can go on a day or night shift, depending on the company priorities. In short, there was much to do with so little time to rest. While the company insurance provided for my possible sicknesses and accidents, I knew it was not enough. I had an insurance that would protect me from serious illnesses caused by the toxic workplace. Assess what you need, and you will get what you pay for.

2.    Know Your Financial Capability

Insurance take huge chunks of money off your budget, so be sure that you know your financial capability. Financial planners may tell you that your budget could accommodate the monthly, quarterly or annual repayments, but it is up to you to know where your money is going, and how it would flow into your insurance investments.

3.    Which One Helps You More?

In terms of interest rates, it would be clear to get the more affordable one, but it is also a bad idea to invest in something that will not deliver. Some insurance are more affordable for a reason, and they may have hidden costs as well. A higher-premium insurance might seem expensive, but it can certainly fit the glove of your lifestyle, which makes it a better choice than the other.

The Pros and Cons of Britain’s Leaving of the EU

Under much pressure from his Conservative party members, British Prime Minister David Cameron may invoke a British Exit or “Brexit” from the European Union by invoking Article 50, a Departure Clause, in the EU. However, the EU is the UK’s biggest single export market, but the return of judicial power to Westminster is assured by the UK’s re-completion of sovereignty.

Pros

Should the UK leave the Euro, UK helps itself avoid the EU’s “undemocratic” methods criticised by many political experts. EU directives, which helps make the EU unaccountable should anything happen to the United Kingdom, supersede most of the UK’s laws. The UK will also enjoy further economic improvements because it will not be bound to bail out other European countries during economic recessions.

Cons

The EU is the UK’s biggest single export market, and the UK wants to exit the EU while ensuring this single market is still open despite the disconnect. The EU also imports a great deal from different European nations. Large tariffs on European imports and trade deficits with the EU can also materialize.  According to observers, the UK’s annual deficit of £50 billion can be secured, but it can lose its trade surplus of £12 billion.

Like in all deals, there’s a trade-off. Let’s hope our politicians do what is necessary to help the country.

What You’ll Need Before You Retire

We all look forward to that day when we can just smoke a cigarette or drink alcohol and not worry about our lives because our retirement fund is doing all the earning for us. However, retiring with only your pension, we will have lots of things to think about. It is important to ensure you got everything you need before you go into retirement. Most of it are the following.

1.    Insurance

Comprehensive insurance for seniors and retirees exist. They may cost a lot, but you should be able to pay them during your professional years. I am working right now and I researched a lot of senior insurance policies that can help me with any health problems (which I do not look forward to) in the future.

2.    Stock Investments

Investing during your younger years, you do not only gain great wealth once you exit the corporate or professional world, but you also gain enough knowledge to expand your horizons in investing. Your knowledge can potentially increase the amountof profit you can make upon your retirement.

3.    Properties

If you have invested in the stock markets, you could use your money to purchase properties that you could use to rent out to individuals, families, travellers and people who could not afford to buy a house. I am actually taking advantage of the UK’s extension of Help to Buy, although I know I will be facing some tough competition with both local and foreign private investors.

Life Plans, Pre-Need Plans, Health Insurance, Why You Need Them.

If you’re only a person looking to save enough money so you could spend for something in the future, own your own house and a car and provide for your children in the present, you’ll need to understand more about the financial products insurance companies and other financial institutions provide. Sure it is discouraging to hear news about insurance frauds, but investments always carry a risk. I actually think the stock market is more dangerous than insurance.

I’m about to reach my retirement at fifty years old. I’m working for a technology firm that I’ve helped build from the ground up. When I was 25, I thought of investing in the stock market, but then I realized I had very small capital. The company told me they used some of my money to pay for my family insurance. I had two kids coming up then, so they told me I should get pre-need plans for them.

Pre-need plans helped me finance the future education of my children. Educational plans included health plans and sometimes even allowances for the kids, which took a great load off the combined income my wife and I had.

We were paying around £7000 each for their pre-need plans when my wife and I were still young. Then my wife and I thought about retirement, so we allocated around £8000 monthly for our pension, each. So it made about £30,000 monthly, leaving my wife and I’s joint income around £150,000 yearly. A small amount, but then, we got to pay for the mortgage with that budget.

Sure the figures might look small, but if you know where your money is going, you won’t have to deal with the stock market and just live a good life right after your employment.

Common Stock Investment Terms for Beginners

If you’re just starting to invest your money in 2014, you’re probably in for the besttime of your life. However, you’ll need to know some basic knowledge regarding stock investing. It might seem that you are just buying and selling stock, but you also need to understand some basic terms used in the market.

1.    The Farm Terms

Animals are a very common term in the stock market. Bull markets appear when the country is doing well with the economy and it sets the ideal conditions for GDP growth, which makes it easier and less risky to pick stocks. A bear market is the complete opposite of the bull market because the economy is not doing well, there is high unemployment and a great recession.

2.    The Common Markets

The Capital Market comprises of long-term bonds, shares and stocks. This is essential for young investors simply because the volatility of the market will have minimal effect on the final value of their investments in the future. For short term investors, there is the Money Market, which deals in annual-yield bonds, treasury bills and certificates of deposits. The Money Market does well if the country’s economy does well.

3.    Beneficial Owner

A beneficial owner is someone who is the real owner of a stock or bond. Stocks or bonds may have three names including the name of the broker, bank and the investor. The investor is the beneficial owner