One of the greatest concerns for any small company or startup is money. Where do you get the money to start your company, and where do you get money to keep your company going? The three most common sources of startup capital are 1) personal savings, 2) cash flows from the business, and 3) credit cards, as seen below in a great sketch by the Kauffman foundation.
Given these numbers it may make sense to answer the question – how do we legally self-finance our business? The most obvious answer is that we can fund the company when we purchase our ownership percentage in the company. This initial ownership purchase, however, may not yield substantial funds or does not meet your company’s financial needs. Two common legal self-funding methods are a promissory note (loan) and a convertible promissory note (loan + conversion feature). We will only cover a promissory note here but we will briefly touch on a convertible note.
A promissory note is a loan agreement that allows the company and individual (be it a founder or other individual) to record the loan and the terms under which it will be governed (interest rate, payment terms, maturity date, etc.). Below is a step-by-step explanation for how to enter into a promissory note with someone loaning money to the company. We will also discuss some potential options for the individual and company once the money has been loaned. Preliminary Steps
Self Lender developed this infographic with a fascinating look at problems that might be solved by billionaires. Self Lender is a venture-backed startup that helps people build credit and savings.
If you had the ability to discern the needs of your customers, you would be much more successful businessman. Of course, targeting your ad campaigns towards your customers’ needs will increase the probability of conversion manifold.
This is easily achievable through email marketing, as most of the modern email automation tools have excellent segmentation tools.
Previously, you may have sent a broadcast email out to your entire client base. In that email, everyone gets the same message. This method has a few names to identify, with scattergun emailing and spray and pray emailing being on top of my personal list.
Both methods have some success but generally fail as the majority of the recipients feel alienated and indifferent toward the generic content mass mails. There’s a much better method to email your client base. It is called email segmentation and yields much higher open rates, response rates and revenue, among other things.
But how does email segmentation work? In a nutshell, it puts the entrants on your email list into appropriate categories that determine the type of emails they are going to receive in the future.
The good news is there are email marketing tools that are ready-made for segmentation. MailChimp, AWeber, and Drip are just a few names that can help in that regard. When your clients want to opt-in as an email subscriber, these email tools allow them to set the category of emails they prefer to receive.
One client might not be ready to purchase a product or service from you but are still interested to receive information. Other clients will have a much keener interest in what you have to offer and may choose a different and more frequent category.
Other settings are based on how often your client has purchased from you or are only interested in one particular brand or item.
How does email segmentation help keep your client base healthy? It will help you weed out recipients who don’t respond or have a negative reaction toward certain type of content.
However, don’t go all crazy and start categorizing everything. It would make sense to see how successful businesses are doing it and follow their methods. Two case studies show a twenty percent increase in open rates by SHEFinds and a 40% increase in open rates by SwayChic.
Check out even more compelling facts and working tactics in the infographic below and take your email marketing efforts to the next level.
by Erica Flemming
There are many possible advantages which people may get from a collaboration between Human Resource Management and Marketing leaders. These benefits enumerate more effective workflow, higher productivity, creative approaches to management, and innovation.
HR and marketing teams are collaborating more closely in today’s digital age to define company culture and project a consistent brand image through their people, all the way from the recruitment process to interacting with consumers, both internal and external.
Marketing has been using HR for a long time to solve its problems: search and selection of talents, development of motivation system, training and development of employees of the marketing department.
Why doesn’t HR address the help of marketing to cope with the new challenges that the market dictates? Consider five HR-tasks that can be effectively addressed using marketing tools.
What HR can learn from Marketing:
1. Talent segmentation.
2. Embracing technology to engage with employees and prospects
What Marketing can learn from HR:
1. Influencing business behavior and strategy
2. Putting people first.
HR can become a source of profit
It isn’t news that the goal of any business is earning money. More recently, this wasn’t a priority for HR-functions, and now cases are known, when the owners of companies fire entire departments. They no longer want to keep employees who water the flowers and shift paper from place to place.
To solve this problem, start thinking like a marketer. Marketing is the extraction of profit from the satisfaction of the consumer. And you learn to think about how to meet the needs of the "client" for profit.does
HR can boost finances
Despite the fact that HR doesn’t directly earn money for the company, it has a very big influence on the formation of its profits. Here is the list of some ideas.
New market conditions and challenges for business
The market is changing. New technologies are coming. Yesterday's strategies no longer work. Business must adapt to new market conditions. HR also can’t ignore these changes.
What exactly and how does HR need to be monitored and analyzed in order not to hinder the development of the company? How to keep abreast of trends and trends in the market?
Use a strategic marketing tool called PESTeL analysis. It allows you to collect all P - political, E - economic, S - social, T - technological, L - legal factors in one simple table, which must be taken into account when developing HR strategy. In the section of social factors will fall generation Y and the shortage of people due to the demographic pockets of the 90s of last century. In the technological — the development of social networks, increasing the speed of communications.
In economic — stagnation of business growth, currency appreciation. In the legal — new laws and requirements. By collecting in one table all the factors that affect your company as a whole and the HR function, in particular, you will be able to take them into account when developing a new HR strategy.
Where to get information? Attend profile conferences and forums, communicate with colleagues, read expert opinions, watch for changes in legislation, keep abreast of the challenges and difficulties that your company faces, study foreign analytics and trends.
Closer collaboration between marketing and HR is helping define brand identity and create a customer-centric company culture. The start of that is working together totally to build great businesses that future great employees will flock to, and current great employees want to stay at.
My name is Erica Fleming. I support the effective adoption of new technologies or ways of working within writing by communicating complex information in an informative and inspiring way. My works you can at sutree.com. I’m fond of writing articles for students, helping with essays.
In 2012, a magistrate judge ruled that predictive coding was an acceptable form of conducting discovery. Previously, lawyers had to wait around for judicial approval to use computer-assisted review to search for electronically stored information pertaining to their cases. This ruling was just one milestone along the way to making data more accessible to lawyers.
E-discovery has turned litigation on its head by speeding up the investigation process and giving lawyers more time to focus on their clients’ needs. There are several different apps and other online legal resources that expedite document review, produce basic contracts and forms and create comprehensive breakdowns of tasks. In fact, some technology is so advanced that many fear software will replace lawyers. Yet, according to the McKinsey Global Institute, data harvesting apps are capable of doing only around 23 percent of a lawyer’s job. In fact, most programs are designed to make a lawyer’s job easier. These are a few of the data mining apps that are changing the traditional way lawyering is done:
Nexis is the internet’s most coveted search engine that contains archived articles and cases only previously found in microfilm. Through regular use, this indexing tool builds up relevancy rankings depending on search patterns, matching terms and file characteristics. Its algorithms also help lawyers figure out whether or not to take on a case. In 2015, Nexis acquired Lex Machina Inc., a program that creates organized data sets from public records systems to help lawyers predict the outcomes of cases and create litigation strategies based on the system’s ability to mine, tag and categorize federal court dockets and documents. Westlaw, Nexis’s competitor, offers many of the same features along with various citation formats for pasting into documents. Both programs offer precise details of state laws and provide annotated versions of both state and federal statutes, regulations and some state codes.
A magic wand for patent lawyers, this SaaS company collects U.S. patent office data and identifies the number of pending, approved and abandoned patent applications. It also gives lawyers a first-hand look at previous actions taken by the U.S. Patent and Trademark Office so that they can strategize and curate their application to the specific examiner reviewing their client’s patent application.
One of the latest moves to bring artificial intelligence to the legal industry comes from RAVN Systems, a group of London-based AI specialists. Their new product Extract isn’t even a year old yet, but it is poised to revolutionize the legal industry with its robot that can summarize, analyze, and draw out specific information from documents in a matter of minutes. Extract’s robot can decipher and analyze documents pertaining to all legal spheres from real estate to contract forms and financial records.
The new legal researcher who just joined the practice isn’t a recent law school graduate — its name is Ross, and it’s a robot. This AI machine powered by IBM Watson uses deep learning to produce answers to literally any kind of legal query. Ross takes seconds to procure material pertaining to specific cases or other litigation that would take any human lawyer hours or days to uncover. The more you use Ross, the smarter it gets. With each answer, Ross provides a list of sources, and users can rate the information’s accuracy with a “thumbs up” or “thumbs down.” This user interaction enables Ross to become increasingly sophisticated so that it will gradually come up with stronger answers the more it’s used.
When considering small business financing, it’s important to understand all your available options. Otherwise, investors can easily take advantage of you and offer unfair terms. So before raising any money, learn if equity, debt or convertible debt financing makes the most sense for you to grow your business.
Raising capital through equity is a popular, if not the most popular choice, for entrepreneurs to pursue. Investors buy stock in your company, giving them a financial stake in the future success of your business.
How It Works
Debt-based fundraising is the form of small business financing most small businesses end up choosing, says Fundable. It’s also the easiest to understand. Money is loaned to you with the agreement you’ll repay it over time with an established interest rate.
How It Works
A convertible debt small business financing structure is a mix of debt and equity financing. The money raised is considered a loan, but at some future date the loan can convert to equity if the lenders so choose.
How It Works
From Entrepreneur, Dhaval Patel offers seven ways to grow your personal brand quickly. These are my favorite parts of his advice:
Read the full story at 7 Ways to Grow Your Personal Brand in Less Than a Week
via Blogger 7 Ways To Grow Your Personal Brand in Less Than a Week
MoneyPod created a terrific infographic on the highest paid world leaders.
See more at The Richest World Leaders
Affordable Online Colleges has developed a list of the 20 most common mistakes first year college students makes. Here are some of them:
1. Not Going to Class
It’s tempting after a night of partying to skip class. It seems easy enough to check online to get notes or assignments. But what you’re really missing isn’t posted online — it’s the experience of being in the classroom, listening to professors’ insights and participating in discussion.
The alarm clock seems harsh, but it’s best to marshal your willpower and go to class. Increase your odds by signing up for classes at times that you’re most likely to go. Remember, you’re paying for every class, even if you aren’t going. Plus, grades often are tied to attendance, so don’t risk your academic success by skipping.
2. Not Knowing How to Study Properly
Despite having just finished 12 years of school, many college students simply don’t know how to study effectively. It’s not just about reading, highlighting and memorizing. If students don’t learn to read critically, the material won’t stick.
Taking in-class notes is one way to ensure you have the necessary information, and the act of writing may aid in memorization. Find opportunities to meet with professors during office hours to discuss material that may not be clear and reach out to fellow students to start study groups. Many schools also offer freshman courses that teach basic study skills.
3. Poor Planning and Time Management
Procrastination is the nemesis of many students, especially freshmen. In one study of college students, two groups of students were assigned to write three papers. The first group had established due dates spaced throughout the semester; the second could turn them in whenever they wanted. The latter group handed in all their papers at the end of the semester, and the quality was poorer. Procrastination also leads to diminished energy and physical health, according to an article in Psychology Today. Procrastinating college students suffer greater rates of colds and flu, gastrointestinal problems and insomnia.
It takes commitment to establish good work and study habits, but it’s achievable, and the payout is worth it. Many campuses offer courses in time management, and student resource centers also can help in developing effective time-management strategies.
4. Not Establishing Connections with Faculty
Student-faculty contact outside the classroom contributes to better graduation rates, better academic performance and greater overall satisfaction with school. Yet two-thirds of students surveyed for a study published in 2014 said they had not attended instructor office hours at all for the course in question.
Instructors have office hours specifically for students to ask for help — but it’s not necessary to wait until problems arise. Establishing personal connections with professors can demonstrate a student’s good attitude and willingness to work, and can translate to higher grades and more opportunities.
5. Being Distracted by Their Phones
A 2016 study from the Journal of Media Education found that 97 percent of college students use their phones during classes for noneducational purposes. It’s mostly texting, which has been tied to lower grades, but that’s not the only culprit. Social media, web surfing and checking emails all contributed to the distractions.
Some teachers have outright rules against cellphone use, but if they don’t, it’s still a good practice for students to keep the phone on Do Not Disturb mode, tucked inside their backpacks. They might even try apps such as Cold Turkey Blocker, Freedom or Offtime, which allow users to temporarily block access to certain apps or websites.
6. Not Making and Following a Budget
Aside from tuition, college comes with costs ranging from food to books to transportation. It’s overwhelming and can derail students who don’t have a budget to keep them on track, according to Amy Nelson, who manages the financial literacy program at the University of Nevada, Reno. “Students don’t understand the components of a budget — where the money is coming from and where they’re spending it — or how those habits will carry them into future semesters,” she says.
Fortunately, many schools have financial literacy programs for incoming freshmen, offering tips on forming a budget and sticking to it. Nelson also recommends checking out advice from the Consumer Financial Protection Bureau.
7. Living Beyond Their MeansCollege freshmen often tend to overspend in that first year, falling victim to the freedom that comes from living away from home and the temptation to cave to peer pressure and spend money when they’re around friends. Chances are, however, those friends are facing the same challenges, and teaming up to resist spending can go a long way.
“It’s OK to say no to your friends,” Nelson says. “Dining out is the biggest budget buster; that adds up very quickly.” Students should take advantage of that college meal plan, stick to their budget and band together to find ways to live on the cheap without sacrificing fun.
8. Overusing Credit Cards
One reason college freshmen may overspend is that they’re now flush with credit — in 2017, 38 percent of students had a credit card. Unfortunately, college students typically face high interest rates, leading to large debt for those who don’t repay balances quickly.
Students shouldn’t necessarily avoid getting a credit card, but they should be aware of the risks. They might consider becoming authorized users on their parents’ credit cards, or search for cards with low spending limits, to build their good credit for future purchases down the road. They should also educate themselves about what various cards offer, why their credit scores are important and how to maintain a good credit record.
9. Not Having an Emergency Fund
Even the best-laid plans are not immune to emergencies, from a broken-down car to an illness. But far too few students have an emergency fund set aside to allow them to absorb a financial hit without going broke.
How much they should put aside varies and will depend on individual circumstances. Freshmen are typically still receiving some parental help and can likely budget less than those who are financially independent, but it’s still a good idea to have something stashed away. Consider what your biggest expense might be (e.g. a major car repair) and use that as a starting place.
10. Not Paying Attention to Debt
According to a Brookings Institution report, about half of all first-year students in the U.S. seriously underestimate how much student debt they have, and less than one-third can provide an accurate estimate of their debt. At the same time, they continue to take out student loans with no plan about how to pay them back.
It’s nice to get that financial bump at the beginning of the semester, but it’s important to budget funds so they last from month to month. If you have some extra cash, consider paying a loan back immediately, to lessen the total loan amount you’ll owe later.
Read the full story at Oops! The 20 Most Common College Freshman Mistakes