The Sociology of Financial Markets
July 13, 2011 By
The New York Stock Exchange has got it right
July 11, 2011 By
New York Stock Exchange
The New York Stock Exchange: Do you know what the single most important product that keeps things ticking over is? Data Cabling. Yes, Technology is the most important asset and the only real enabler at the New York Stock Exchange. This extraordinary Trading Platform deals in 1.6 billion shares every day. There are more than ten thousand Data cabling and Voice circuits connected to the trading floor. All trades are completed electronically and there are three thousand discreet systems at the Data Cabling centre. [Read more...]
Venture capital as a business financing option
February 22, 2011 By
Starting a business can be the most rewarding decision a person can make, especially in the current economy. It is not easy, many stressful days lie ahead. For those who decide to brave it, who have an idea, have chosen the name and even created a plan, depending on the idea, are hit by the usual hurdle that is; financing for your business.
Equity finance is a way to raise share capital from investors in return for handing over a share of the business. Equity finance can be good for raising long term finance but to sell shares means to sell ownership and distributing future profits. [Read more...]
Micro loans for small businesses
February 17, 2011 By
It is not easy setting up a business from scratch. There are different options for business finance. The most common is self-financing and business loans. Another way is to attain investment from a Business Angel or Venture capitalist. There is also an array of government grants out there too. What if you are a small business or sole trader and cannot secure a bank loan? The savings may be running low? What if you have looked and there is no current grant to suit you? If you need a little extra for cash flow or need it for that project there may be another way. Some organisations are offering a bit of support. [Read more...]
Government Grants
February 14, 2011 By
With the current economic climate and job hunt market as it is, it is good to know that there are Government schemes that provide support to small businesses and funds to start up businesses trying to get off the ground. The advantage of grants that assist businesses is that often they do no need to be paid back however finding and applying for them is another matter.
Websites and advisory centres such as Business link can help point you in the right direction. When looking for a grant, you will notice that most have eligibility criteria that must be fulfilled. If your company does not fulfil that criterion, the application will likely not be considered. Aside from looking for the right eligibility, each grant provider will have its own requirements and will consider an application based on these. They may be specific to the region, industry or expertise; the requirements may also restrict how you use the money. Another thing to remember is that there will be quite a fierce competition with a lot of other applicants. You will need a good business plan and be able to promote your business well to encourage investment. [Read more...]
Financing a start up business
February 11, 2011 By
So you have a great idea. You have decided on a name. You have even completed the business plan. Ideally you have written the plan with the preferred investment option in mind but we all know that starting business costs money. This is often the hurdle that prevents a lot of new ideas from leaving the first base. Well depending on your idea, here are a few choices you can take.
Self-financing – Using your money is the most popular form of financing a start-up business. Even if you do seek a business loan you do need to show that you have some savings or self investment. This is still a risky option and depends on the success of your business.
In order to pull this of, you will need to assess your assets. This could be; savings, property, vehicles and things that can be used as collateral for a loan. You will need to calculate how much you will actually need and aim to keep start up costs as low as possible. For loan options, credit cards are expensive but have been done before. You could also consider getting a mortgage or second mortgage. [Read more...]
Enterprise Finance Guarantee
February 8, 2011 By
If for any reason a small to medium company with a clear business plan requires a loan, and is struggling to get one from a lender, there is a solution. The credit crunch has had an affect on most of. That is where the government Enterprise Finance Guarantee can help.
The loan guarantee scheme, run under Department for Business, innovation and skills provides lenders a government guarantee for 75% lenders exposure on non individual loans. If you can provide 25% collateral, the rest is guaranteed by the government scheme. Set up January 2009, the aim was to keep the economy running during the recession. [Read more...]
Dragons Den
February 4, 2011 By
To start your own business is hard enough work as it is. Sometimes money just does not stretch far enough. If you can prove your idea works and will be successful, venture capital may be an option for getting extra finance for your business. It is not an easy decision to make as venture capitalists will require up to 40% equity in order that when the business grows, but unlike a loan, you may not have to pay the money bank. Thanks to the wonders of television, we get a glimpse of how venture capitalists actually think.
Dragons Den is a BBC series that sees entrepreneurs and inventors applying for finance from five multi-millionaire investors listen to bids for support, they decide what they will take on, and if necessary will compete and bid for the products they like. The show has been on our screens for five years and in that time we have been given a glimpse of all sorts of inventions and ideas some very good and some that frankly need to go back to the drawing board. It is extremely hard as we notice to impress these millionaires but not impossible. [Read more...]
Future For Start Ups
February 3, 2011 By
“Business is the driver of economic growth and innovation” is taken from Conservative Party website as they pledge to boost enterprise, support green growth and build a new responsible economical model. As there is an increase in redundancies and unemployment from cutting public sector, the need to encourage those in long term unemployment is ever present.
If you have not already heard, Conservatives and the coalition plan to wind down the existence of Business Link. As an online support and guide for those wishing to start their own business, surely it would greatly assist in what Conservatives would like to achieve. [Read more...]
Business Finance
January 28, 2011 By
When starting and running a business, there are many different costs to consider at different times. To help along the way, various organisations help guide business owners with everything to do with business finance. It is important to get good advice and ensure you plan well; it could save you thousands of pounds.
At start up stage, the focus is on how to raise finance. It is essential to choose the right finance when starting up. Whether you self-finance your start up, get a bank loan, grant or are funded by venture capitalists; planning is essential. As the business grows, you should know your business well and be able to identify the right finance options. The best way to apply for funding such as a bank loan, venture capital or government grant is to use your business plan. [Read more...]