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Finance

Tips for Merchandise Financial Planning

Merchants have been there from the time when people used to travel long distances to conduct trade. The difference between now and the old times is that there are a lot more goods to be traded.

There are many financial institutions to help you acquire, manage, and plan your finances. If you are an entrepreneur looking to venture into the merchandising space, you should be able to prepare yourself financially. Here are some of the tips to help you adopt effective merchandise financial planning.

Scope of Operations

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One needs to ask themselves the scope of their merchandising business. Is it a small, medium-sized enterprise? Or is it a large enterprise? Establishing this will put you in a position to budget your financial planning effectively. Factors that you always have to consider are transportation cost, order fulfillment cost, merchandise purchasing cost, and also packaging cost. Nonetheless, all these will be depending on what type of merchandise you are selling.

Financial Institutions

Before financial planning, one has to acquire the finance to be able to plan for them adequately. There are many methods one can acquire finances, including; taking a loan, using his/her savings, partnering with a person with money, selling company equity, and taking your business public by listing an IPO on the stock market. Banks are the number one lenders who may be able to finance an individual or a company. Nonetheless, venture capitalist and hedge funds have been known to promote merchant industries.

Personnel

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Most merchants have gone into the online space to partake in the seamless e-commerce process of trading online. However, it is easy to forget that however digital we are steadily becoming, humans have to be in the picture to make the whole process possible. You need to budget your finances with the personnel that is part of the process. These include packers, web developers, and delivery personnel.

Reasonable Pricing

One has to set its product pricing at competitive prices to allow a sustainable model in the vast market. In case the market is not well established, the leaders should set reasonable standards that are to be followed by future market entrants.

Proactive

When making financial plans, it’s important to be proactive and set aside some funds for emergencies that may arise. This will significantly help the merchant to be able to adjust to emergencies that face the business abruptly appropriately.

If you adhere to the information above, you will have an easy time planning for merchandising and also increase the chances of being successful.…

money lending
Finance

Choosing the Best Moneylender

Financial needs may arise at one moment or the other. You may want money to cater for the emergency you are facing or sort out some of your urgent needs. There are those who may require cash for business reasons. Starting up a business can be difficult when you don’t have capital.

Capital is also crucial when it comes to running your business. You will need money to stock up and see some of the operations run smoothly. Getting such amounts from friends or other individuals can be very difficult. You don’t have to worry because there are financial institutions that can lend you that money.

Some lenders offer small business loans that can help you improve your enterprise. Just like any other lender, you will be required to pay back with some specific amount of interest after a particular period. Failure to do so will see you get blacklisted and you will find a difficult time accessing loans in the future. There are also online lenders that offer quick loans online.

There is no need to walk miles to any banking hall to fillapplying a loan in your loan application papers. You can do all that using your phone from the comfort of your home. You can also access them with a poor credit score. There are several things you need to consider when choosing a moneylender. They include:

Credibility

You are advised to borrow money from credible moneylenders. One thing you should find out is if they are operating legally. You should also look at how a particular company deals with its customers. Factoring out the credibility or reputation of a specific company will grant you that borrowing confidence.

Interest Rates

You should look at the interest rates charged by the specific moneylender you wants to uses. They may vary among various lenders. Make your comparisons and go for one with low interest rates. One should also look out if there are any other hidden costs when it comes to the repayment of loans. Don’t forget to look at the quality of service offered.

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You need to consider the loan products offered by a specific company to get a variety of options to pick. Some of the common loan products you can get include business loans, personal loans, and small payday loans. Look for lenders who have a broad variety of them to avoid being limited on the type of loan you may want to choose.…

Investing In A Startup
Investments

Factors To Consider When Investing In A Startup

Investing in a start-up business comes with many risks. This is because the business has not yet proved itself profitable and can result in you losing whatever you invest in it. The good news is that there is a lot that you can do to mitigate the risks. All you need to do is get good answers to the right questions. Some of the factors to consider, which will work as your guide, are highlighted below.

Main considerations to make

Scalability of the company

 Investing In A Startup

Scalability simply refers to the ability of the company to grow its revenues quickly while keeping the expenses down. This will result in good margins. There are some business models which have great scalability, such as those that involve mass production. Those that require customization or technical installation expertise, on the other hand, are not easily scalable.

Attraction to potential acquirers

The company should have an exit strategy right from the beginning. You should thus ensure that the company would please the potential corporations that will acquire it. Most corporations prefer ventures that have high growth and great profit margins. The products or services should also align with the strategies that they have. Ensure that you understand who is likely to buy the company, the reasons as to why they will be interested, and the duration that it might take before the acquisition.

Anticipated returns

 Investing In A StartupA potential exit must come with a return calculation, which should be based on the amount that you invest, company valuation, percentage of stock ownership, and the purchase price of the acquisition. This makes it important to consider not only the potential selling price of the company but also whether additional rounds of investment might have a negative effect on your ownership percentage. For example, if you wish to get ten times return on your investment, you should consider a company that will not require much additional capital. Keep in mind that the calculations you make are only theoretical and things may be different when it comes to actualization.

Management team

For you to invest in a company, you should ensure that it is led by a solid management team. The managers should have relevant knowledge, experience, and skills among other features, which are useful in growing the company successfully. The team should display confidence in what they do and deliver results promptly. Poor management may result in loss of your investment capital.

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