Be Paid Your Worth in 3 Easy Steps!

Business is competitive. Period. You go into business to make money and be your own boss: to set your own schedule and work with only those clients who are in alignment with your philosophy.

Because of the high level of competitiveness, there is a chance in the beginning you are going to charge less than your closest competitors; and in the beginning, this is for most of you the best decision. You need to get the doors open and buyers in. But for how long do you continue to charge a fee that is a "steal"?

Yes, the economy isn't the greatest, and people still have their purse strings tightened. But those who are in need of your goods or services are ready to jump on board with you and invest the fees necessary. You know what sets you apart from your competitors, and the key to convincing a client or customer to choose you is what you offer that no one else does.

Ideally you want to charge a fee that can withstand whatever the current market will bear but still be considered a good deal. So what stops you from establishing a fair market value for your services and provide your knowledge for less than what it's worth? Simply stated: Your confidence is impacting your ability to be paid your worth!

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Are You Financially Balanced?

Is your business growing? Or has it stagnated during these last few years due to the economic downturn? Like most of us who own their own business, going to the next level is always a big step: a step that takes more than just courage, optimism and a great concept.

It also takes money. Purse strings are tight, and to reach out and ask for financial help can be more than a little scary. The big question is what type of financial help you want—I mean, other than just asking for money. Are you open to giving up part ownership? What about paying interest on the money you receive?

The two means of financing available for your company are:

1. Debt Financing, which is when you borrow a set amount of money for a predetermined period of time and pay a predetermined interest; and
2. Equity Financing is receiving an injection of funding in exchange for an ownership stake. The percentage of ownership is based on the amount the investor is paying per share and how many shares he's purchasing.

But how do you determine which form of financing is right for you? Both of these financing options have advantages and disadvantages. Before we go any further, let me clearly state this: Your final decision, before doing anything, needs to be based on education and knowledge. Your specific business situation is unique to you and your financing options, no matter which path you choose. It is unique to you, and there are two professional resources you need to seek out and tap into before venturing into the wild world of financing. Those two resources are a CPA specializing in financial investment and associated tax laws, and a lawyer specializing in fundraising and associated state and federal business laws.

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Money Talks; Everything Else Walks

Recently in a conversation with an associate, we were discussing venture capital opportunities of the past and how we both have invested more than just money but also our time, dedication and expertise; and for a few of those investments we've wound up with some beautiful-looking ownership certificates that have no cash value but make great wall paper. When it comes to having the desire to move your business up in the world, expertise is nice but money is what ultimately pays the bills for those direct and hard costs associated with running your business. For individuals to invest their cold cash into your business, they need to believe that what they're investing in will provide a return, and their belief is ultimately based on your own belief, the trust you have in yourself and your business idea.

You possess an impressive business plan, you've worked on your business design, and you've finished a feasibility assessment that indicates your business has the makings for making huge money. Great! The only thing stopping you from taking the leap is your need of raising money.

In this economy, finding individuals to invest in a small business isn't the easiest thing. But don't lose hope; they are out there, and yes, they are willing. These individuals are best known as "Venture Capitalists" or "Angel Investors." Basically, VCs impart fiscal backing to a company or firm that is in its early stages but nevertheless exhibits high potential in terms of forthcoming growth and profitability: exactly where you seem to be finding yourself. Their goal? To make larger-than-typical profits (i.e., stock market investments) on their investments. Don't fool yourself: VCs are fully aware that a number of these types of investment projects can and will end up losing money. However, VCs recognize that great earnings from some of their projects will more than compensate for their losses along the way. Venture Capitalists are receptive to taking high-level risks when other people may not be.

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Debt v. Equity Financing

When entrepreneurs begin to think about either going into business for themselves or taking their business to the next level, the financial and money concerns become the main challenge to address and/or overcome.

Debt and equity are the two main financing options from which most businesses can choose. Debt financing in simple terms means borrowing funds for the business for a fixed period of time at an interest rate pre-determined at the time of borrowing. Equity financing, on the other hand, refers to the capital raised for a company by selling common stock to individual or institutional investors. It leads to sharing of ownership in the business, depending on the amount invested. The following is a brief introduction to the advantages and disadvantages of both debt financing and equity financing.

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Financing and Funding: Venture Capital

You have a great business idea, have worked on the business blueprint and done a feasibility check, and have forecast that the business possesses enormous potential for making large profits! In short, everything is in place and the only thing stopping you from taking the plunge is lack of avenues for raising funds.

To provide financial support to such business firms and promising entrepreneurial abilities, the concept of venture capital emerged. Venture Capital is a significant source of finance for those small and mid-sized firms in their early-stages that nevertheless exhibit high potential in terms of future growth and profitability.

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LOA and Your Income

Everyone wants to increase his income, and if the law of attraction can help, why not? The problem is that while most people have the desire to earn more money and theoretical knowledge of the law of attraction, they do not know how to apply it to their own personal situation to support a positive outcome.

I thought I would share a simple step-by-step action plan that may help you increase your income by using this natural law. Remember, for the Law of Attraction to be “activated” you need to be in action and taking steps to positively support your desired outcome.

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Importance of HR Accounting

There is no undermining the value of Human Resource in any organisation. To quote Narayan Murthy founder of the IT giant Infosys, “My assets are not the buildings, the business or foreign contact. My assets walk out of the gate every evening and I wait for them to come back to me the next morning.”

Human Resource is the greatest asset of any organization, and like any other asset you need to account for it. This is particularly true in service-based organizations where instead of a tangible product there’s an intangible product (i.e., service to offer), and hence the conduct and approach of the employees assumes greater importance. Human Resource Accounting (HR Accounting) may be a new term for a lot of small businesses since most view their employees as assets but forget that there is a real tangible cost associated with obtaining these assets and well as maintaining the assets to ensure a long and loyal life.

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Starting Your Own Business?

The idea of doing their own thing has seduced many men and women into chucking their jobs and trying their luck at entrepreneurship. Unfortunately, not all people have been able to succeed at running their own businesses. The problem more often than not lies in the fact that most people plunge into the deep waters of entrepreneurship unprepared. Ideally, before you start your own business you need to ask yourself the following questions. The easy step is asking; providing a truthful, honest answer is the difficult part.

Do you have enough capital and cash? Money attracts money. If you do not have enough capital and liquidity, it won’t be easy for you to sustain your business. Therefore, before you decide to start your own business you must be clear about your funding options. Do you want to borrow? Can you borrow money, and if so, from where? What are you willing to give in return for the investment? If the funds are not from a bank, then private investors are looking for ownership and a return on their investment.

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