THE FOUR BEST WAYS TO RAISE CAPITAL FOR SMALL BUSINESSES

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First published on MatthewGorelik.co

Starting a business from the ground up can be difficult, to say the least. Website costs, advertisement fees, legal fees and even rent are just a few of the myriad of potential starting costs involved with building a start-up from scratch. Regardless of what kind of enterprise you are looking to start, without a decent amount of capital to draw from, fundraising will be one of the first major steps in getting your company off the ground. Raising the necessary capital to get your small business up and running is essential. Luckily; however, with today’s technology, there are a few more options at the prospective business owner’s disposal than ever before. Additionally, the tried and true methods are always solid options, especially if one is not particularly experienced in using the Internet. With that, here are four good options to raise capital for a small business in the 21st Century.

Personal Savings

Perhaps among the most common and certainly most obvious, a reasonable amount of one’s own savings is always a great source of startup capital. Investors, while they are backing a company, they are also investing in the person who they feel they can trust and, frankly, whom they respect. Devoting one’s personal finances to his or her business venture is always something that will catch the eyes of potential investors because it clearly demonstrates one’s commitment.

Loan

Loans from banks or other investment firms are great sources of capital for your small business. Depending on your credit profile and the collateral you can offer, small-business loans can sometimes offer great deals and incentives. When attempting to earn an investment of a decent amount from any source, it is imperative that you either practice and perfect your sales pitch (selling yourself, your brand and your idea) or find someone who is good at this and can do it for you.

Crowdfunding

Most people have heard of Kickstarter, but there are many other reputable platforms for Crowdfunding that you should look into. Take a look at this list.

Cryptocurrency

Many entities, ranging from startup companies to small-scale inventors, are starting to issue new cryptocurrency tokens that are tied to a specific product or venture. Investors can simply buy a certain amount of these tokens and watch their value increase or decrease accordingly. This way, investors can see their return on investment immediately and in real-time.

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WHY GIVING BACK AS A BUSINESS IS ESSENTIAL

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First published on MatthewGorelik.info

Corporate social responsibility (CSR) is more respected by customers, news media outlets, and stakeholders than ever before; in today’s world of widespread green-minded initiatives, electric cars, recycled goods, and global civic-mindedness, consumers regularly choose businesses that give back to the world and its people far more frequently than their selfish corporate counterparts.

For this logic-loaded reason and countless others, giving back as a business is essential to well-oiled performance. Check out these reasons that support civic-minded policies.

Young, talented workers are willing to take pay cuts to work for responsible companies

Recent research suggests that a whopping three-quarters – that’s 75 percent – of millennials would take pay cuts just to be employed by businesses with solid corporate social responsibility policies. While millennials regularly catch flak for being their forward-minded, globally-oriented selves, the global workforce isn’t getting any younger; as time marches onwards, millennials and constituents of the similarly-minded Generation Z continue to fill the figurative gas tank of corporations’ collective and individual payrolls.

Companies that require mandatory volunteer work from employees see immediate boosts to workers’ efforts

According to a 2010 poll conducted by PsychCentral, one of the Internet’s longest-running and most-trusted outlets of information related to mental health disorders and their treatments, United States citizens who volunteered their time and effort to good causes benefited in several ways:

  • Two-thirds of people polled reported that they felt as if their physical health had immediately improved following their participation in volunteer work.
  • Over 70 percent of respondents claimed that they were graced by reduced stress in their daily lives.
  • Nearly 90 percent of those volunteers shared that their overall happiness levels had risen both immediately after volunteering and for weeks after offering their help to the civic-minded causes they contributed to.

Peer-reviewed entries into the academic world’s most prominent psychological journals widely suggest a positive correlation between workplace productivity and employees’ average happiness levels.

Why not require just one day’s worth of volunteering out of employees? Calling off work for that day would arguably be a solid investment.

What goes around comes around

Giving back to non-profit organizations and local communities – even if no other benefits are garnered from such civic-minded corporate policies – is likely to generate positive karma. People, organizations, and governments on the receiving end of such assistance are more likely to do business with an entity that gives back.

WHAT IT WILL TAKE TO ATTRACT ANGEL INVESTORS

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First published on MatthewGorelik.co

Angel investors usually invest in innovative entrepreneurs and promising small startup companies. Although early investors in a startup company tend to be close friends and family members, professional and everyday investors are often willing to invest seed capital in promising companies that are likely to attract additional investment. Angel investors are a good source of one-time capital infusions to help launch or maintain the financial stability of a fledgling company.

Seed Capital

Angel investors typically take a long-term approach to investing by providing favorable interest rates on capital loans. This allows aspiring entrepreneurs to focus on the development of a product or service. Unlike traditional lenders and venture capitalists, angel investors focus on the future prospects of a startup company rather than existing income and assets. Angel investors focus on helping entrepreneurs succeed in exchange for an ownership stake, convertible debt or company equity. An angel investor may be identified by any of the following terms:

  • Informal investors
  • Angel funders
  • Private investors
  • Seed investors
  • Business angels

The angel investing concept actually began on Broadway. Wealthy patrons of the arts invested in promising theatrical productions. Now affluent angel investors employ a variety of financial vehicles to pool capital and inject money into innovative companies, including investment networks and online crowdfunding platforms. Angel investors are required to meet the Securities and Exchange Commission’s accreditation standards. SEC standards require a minimum annual income of $200,000 and a minimum net worth of $1 million to become an angel investor.

Angel Investing

Angel investing has accelerated in recent years. Widely publicized success stories such as Facebook, WhatsApp and Uber have propelled angel investing to unimagined heights.

Outsized Returns

Although angel investors may be hoping for outsized returns, most experienced angels are searching for entrepreneurial passion, dedication, concept quality, market opportunity, potential growth and personal integrity. Angel investors typically invest between $25,000 and $100,000. A clearly defined business plan and initial signs of success are important aspects of attracting angel investment capital. Intellectual property rights and the development of innovative technologies are especially attractive.

Angels are looking for a reasonable company valuation, favorable terms and the prospect of raising additional capital.

From the standpoint of an aspiring entrepreneur, raising capital is time-consuming and demanding. Angel investors are seeking answers to fundamental financial questions. The amount of capital to be raised, detailed financial projections and the anticipated monthly financial burn rate are only the beginning of what will be necessary to attract angel investors and the crucial seed capital that aspiring startup companies require.

What Happens To Real Estate After A Death

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First published on MatthewGorelik.io

Roughly one of every five United States households received a transfer of wealth facilitated by the death of a family member or – the second case is far less common than the former instance – friend via inheritance according to a study by the United States Bureau of Labor Statistics conducted from 1989 to 2007.

While everyone wishes they could receive an inheritance of any amount from a family member – or a complete stranger, for that matter – believing an inheritance will come one’s way following the death of a loved one is not sensible. As such, every reasonable member of society places immense value on the potential of being on the receiving end of an end-of-life wealth transfer.

How does an inheritance get passed on to an organization, person, or entity after death?

Legal documents called wills contain plans for distributing assets after all creditors are paid off in full. They contain tons of wisely-worded legalese mumbo-jumbo to make sure estate holders’ belongings are assuredly transferred to whomever or whatever those well-off testators – a legal term for the more commonly-used “benefactor,” or a person who gives cash money and other assets to people, organizations, or governments to help them – wanted to dole them out to.

This post doesn’t cover the steps of having a will made. However, any licensed estate-planning attorney can cover such legal protections to make sure assets are distributed precisely as testators want them to be handed out.

What happens if a will isn’t in place at the time of a prospective benefactor’s death?

In the United States, estates, defined by Investopedia as “everything comprising the net worth of an individual, including all land, possessions, and other assets that the individual owns or has a controlling interest in”, are split into chunks and distributed to heirs after any and all creditors are paid.

Single, childless testators’ estates are given to parents in full if they’re alive. Otherwise, such estates are given to siblings. These testators’ assets are split equally between one’s father’s and mother’s relatives. If they have kids, they are given to those kids and then grandchildren, if applicable.

Married, child-bearing testators’ belongings are distributed in whole to their current spouse. If these benefactors have kids with other spouses, half are distributed to those children, with the other half going to the current spouse.

Lastly, married benefactors’ estates, only if they are made up of “community property”, are given in whole to the recently-made widow or widower. They’re chunked out between parents, kids, and the surviving spouses if they’re “separate property.”