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Contents contributed and discussions participated by Eros Hawkins

Eros Hawkins

Financial Review Corliss Group Online Magazine: The Golden Rule of Startup Capital - 1 views

Financial Review Corliss Group online magazine The Golden Rule of Startup Capital Don't Waste Money
started by Eros Hawkins on 27 Oct 14 no follow-up yet
  • Eros Hawkins
     


    The Golden Rule of Startup Capital: Don't Waste Money

    Golden rule of business: Increase shareholder value.

    Golden rule of investing: Buy low, sell high.

    Most entrepreneurs know these golden rules. To a great extent, they are (or should be) obvious and self evident. They are "rules" because they set the foundation for business mission statements, goals and decisions.

    There is another important golden rule that many entrepreneurs overlook, specifically startup entrepreneurs. It was recently driven home to me in an email from Mike Schroll, the founder of Startup.SC, a South Carolina business incubator with which I am currently working to develop my own startup idea. Working late one evening last week, my computer inbox "pinged" with his single-sentence message:

    "I challenge you to achieve what you are doing with less capital."

    Granted, my first reaction was that this was obvious. Of course, all businesses should try to do more with less. But as I started to consider my proposal in its current iteration, I did notice that I had built a "perfect-world" scenario for my capital-raise ask, which was significantly high. I have an ambitious goal, or BHAG, but I was treading dangerously close to a trap that many entrepreneurs fall into.

    I estimated exactly how much money I needed to succeed.

    The problem with this is that the "perfect" amount of money is a fallacy. Indeed, if you have a unique, revolutionary and proprietary idea, combined with the right amount of money it stands a significantly better chance of becoming a success. But most of us do not have this type of idea -- we just have an idea -- and investors have many investment choices and typically want to spread their risk around to many startups.

    Ultimately, what investors want to see and what you need to consider is the amount of money needed to achieve two goals:

    1. Getting your idea to market.

    2. Growing your customer base as quickly as possible.

    Because capital is scarce, startup capital that goes to anything else will be considered wasteful. For instance:

    Personnel

    About the only thing that is critical for success is personnel needed to get the startup launched. Engineers and programmers are expensive, and they are well worth the money in terms of developing the right minimum viable product or prototype. What should not be considered is a founders' lucrative salary.

    Unless you are a well known and sought-after founder (most of you are not), investors do not want valuable startup capital going to line your pocket. Be prepared to put in time and sweat to show your commitment, for which you will be rewarded with an investment.

    Marketing and advertising

    Customer acquisition cost is a key consideration for investors. If your strategy is just to spend money on advertising for the sake of spending money, then revisit your strategy. Approximating your return on marketing budget is critical, and though there is no way to be exact, demonstrating your critical thinking and understanding of its importance will make you appear much more credible.

    Overhead

    Precious startup capital should not be wasted on things such as offices, furniture, foosball tables and coffee bars, unless these things are critical for retaining key talent. Unless you are a sought-after founder with existing partnership with established venture capitalists, however, be prepared to bootstrap your way through development and launch.

    Everything else

    Everything else needed to get started, from legal to accounting to utilities to janitorial, needs to be kept at an absolute minimum. No founder is beyond sitting in a hot office or taking Clorox to the toilet bowl. If your dollars are not going to build your product and gain customers, then they are being wasted.

    While this concept may be obvious, I personally have spoken to countless entrepreneurs who visualize the launch of their idea with a complete misunderstanding. Many mistakenly believe that they need a Google-esque office, unlimited vacation days and full benefits, when in reality a cinder block desk, Internet access and the unwavering commitment of an ambitious entrepreneur is really all you need.

    For more Financial Reviews from Corliss Group Online Magazine, visit our facebook page and follow us on twitter @CorlissGroupMag.
Eros Hawkins

The Corliss Online Group Financial Magazine Choosing the right financial advisor - 1 views

  •  
    Savvy Senior: How to pick a financial advisor

    Savvy Senior

    How to Pick a Financial Advisor

    Dear Savvy Senior,

    Can you give me some tips on how to choose a good financial planner or advisor? My wife and I are five or six years away from retiring and could use some professional help to get us on track.

    * Seeking Advice

    Dear Seeking,

    With all the different financial advisers and services available today, choosing a trusted professional that can meet your needs can be a bit confusing. Here are some suggestions that can help.
Eros Hawkins

Corliss Online Financial Mag: Varoitus poliittisista levottomuuksista - 1 views

corliss online financial mag Warning of Political Unrest Greece's Samaras Says EU Debt Deal Can't Be a Mirage
started by Eros Hawkins on 04 Oct 13 no follow-up yet
  • Eros Hawkins
     
    http://blogs.wsj.com/economics/2013/10/02/warning-of-political-unrest-greeces-samaras-says-eu-debt-deal-cant-be-a-mirage/

    Warning of Political Unrest, Greece's Samaras Says EU Debt Deal Can't Be a Mirage

    Kreikan pääministeri Antonis Samaras sanoo euroalueen ei pitäisi lykätä päätöstä leikkaamiseen Kreikan velasta, varoitus, että laskennallinen toivoa voisi polttoaine poliittiset levottomuudet.

    Puhuminen myöhään tiistai-iltana Peterson Institute for International Economics, Mr. Samaras sanoi, että lama kuusi vuotta maan partaalla kasvu-uralle ensi vuoden alussa.

    Mutta hän sanoi Kreikan elpyminen tarvitsee huolellisen viljelyn varmistaa vakaan hallituksen ja taloutta.

    Pääministeri on keskellä neljän päivän matka Washingtoniin ja New Yorkiin. Hänen toinen Yhdysvaltojen matkan lähes niin monta kuukautta, hän yrittää vakuuttaa pääomarahastojen ja bond sijoittajat että hänen maansa on lopulta hyvä veto ja voittaa tukea kansainvälisen valuuttarahaston leikkaamiseen Kreikan velkataakkaa. Hän myös haluaa vakuuttaa Valkoisessa talossa, että Athensin sen sotilaallinen liittolainen, yksi harvoista konfliktialueiden konfliktin jälkeisen kehityksen alueen vakautta.

    "Emme et ole siellä vielä, mutta alus on tulossa noin," Mr. Samaras sanoi.

    Huolimatta yksi nykyhistorian suurin talouden uudelleenjärjestelyjä valtion velkasitoumukset uhkaavat hukuttaa talouden. Yksin korkojen eclipse ylijäämä lämmöntuotannosta hallitus voisi tehdä tulevina vuosina valtiontulojen ohittaa menoja.

    Siksi Mr. Samaras haluaa tukea IMF: ltä se työntää euroalueen antamaan anteeksi velkaansa.

    Kreikkalaiset on "evankeliumi valoa tunnelin" keskellä sen tuskallinen rakennemuutosta, Mr. Samaras sanoi.

    Maan bruttokansantuote on kutistunut 25 % ja työttömyysaste osuma ennätys korkea 28 %. Kaksi kolmasosaa nuoriso on työttömänä.

    "Se on realistinen, mirage," pääministeri sanoi. Ilman mitattavissa olevia merkkejä edistymisestä hän sanoi viranomaisten vaarassa "ruokkivat ääriaineksia ja populismia."

    Ateena kukistamaan maan äärioikeistolaisten Golden Dawn puolue, pidättämällä ylin johto ja kieltää poliittista toimintaa ryhmän jälkeen sarja väkivaltaisia hyökkäyksiä, kuten tappaminen näkyvä vasemmistolainen rap-artisti. Pääministerin puolue otteensa vallasta on haastanut poliittinen oppositio, joka on vaatinut Kreikan default velvoitteensa.

    Kreikka vetäytyä kriisin Mr. Samaras sanoi viranomaisten on "tee virhettä ei voida pitää, lupauksen" muistuttaa yleisö myöhemmin euro alueen virkamiehiä on vannonut antaa maan velkojen huojentaminen Ateena täyttyessä sen bailout ehtoja.

    Hän kutsui hän puhuu päivän IMF toimitusjohtaja johtaja Christine Lagarde "hedelmällistä", mutta kieltäytyi kertomasta, onko hän keskusteli erityisesti velan vähentämiseen tähtäävän strategian. Rahasto ei ole julkisesti ajaa mitään erityistä Velkahuojennus suunnitelma, mutta kysymys on todennäköisesti tärkeä aihe tulevassa puolivuosittain IMF kokouksissa ensi viikolla.

    Euro zone voimanpesä Saksa vastustaa kirjoittaa Kreikan julkinen velka hallussa euroalueen hallitusten arvo. Pikemminkin virkamiehet ovat puhuneet pidentää erääntymisaikaa Kreikan velan ja vähentää korko Ateena on maksettava.

    Mutta vaikka nämä vaihtoehdot voivat auttaa, monet taloustieteilijät sanovat he ei riitä.

    "Tärkeintä ei ole liikaa liuoksella viivytellä," Mr. Samaras sanoi.

    Lue lisää:
    http://www.allvoices.com/contributed-news/15277572-the-corliss-group-barcelona-economy-updates-on-spains-position-in-the-world-in-2013-analysis
    http://books.google.dk/books?id=CkBhAAAAIAAJ&pg=RA1-PA110&lpg=RA1-PA110&dq=the+corliss+group&source=bl&ots=gUN539KHl6&sig= boqEPNRfZHrcSK1bstMPA4MzJPg&hl=da&sa=X&ei=iZdMUrSvDOm4iQep-YHACA&ved=0CDgQ6AEwATgU#v=onepage&q=the%20corliss%20group&f=false
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