Category Business

Options for Raising Capital for Small Businesses

Small companies are often in the need of capital to run their business and to expand. Equity financing is often considered to be a superior source of capital for small businesses as it allows them to grow without the overhang of repaying a significant amount of debt.

There are many ways to raise capital for a small business. One option is to invest money themselves. Another option is to offer ownership interest for friends and family members. The problem with this is that there is often a limited amount of capital available from your family and friends. In addition, more often than not, they do not have much experience in running a business. This is where private equity firms can significantly help your small business.

Private equity firms have investors who trust the private equity fund managers due to experience with them, their reputation, and their experience. As a result, these private equity firms are often able to raise a significant amount of money that can significantly allow an small business to expand more quickly.

Professional equity firms also have more sophisticated investors who may be able to understand that your small business may need time to build a reputation to expand. They often have more patience than individuals who need a quick return and as a result your business can potentially grow in a more measured and sustainable way. This can provide a large boon to your business.

In addition to this, private equity firms provide small businesses with business experience and expertise. Many small business owners do not have an extensive history in business. As such, they are not experienced and knowledgeable regarding the best practices currently present in the industry. This can help your business grow quicker and also to install some internal controls that help to effectively run your organization in a more efficient and safer way.

Private equity firms often invest in different ways into a small business than other investors may. Some offer a loan that is convertible into equity shares upon certain triggers. Others invest through convertible shares that provide them with the ability to convert into common shares. The point is that many private equity firms are looking for investments that offer the protection and income that bonds offer yet the potential that equity investments provide. Therefore private equity firms can provide much needed capital for small businesses, but has a cost associated with it.

Get the latest news of private equity topics from David Hand Crescent Point Singapore or read more Crescent Point Private Equity reviews, the leading emerging markets investment management and financial advisory firm primarily targeting in the Asia-Pacific and Middle East regions.

Read More

Business Incorporation Services in Singapore

SETUP A SINGAPORE COMPANY
Bizcorp provides services for international companies that are interested in locating in the Singapore market. A Singapore Incorporation is possible by following certain formation processes. A company formation may allow for additional greater confidentiality, fewer company regulations, and a minimal tax exposure. You may also learn these 5 Steps to Overcoming Challenges of Starting a New Business.

SERVICES OFFERED
Services offered may involve a two-step company formation process that includes registering a company name and filing for the business incorporation. These two processes may be completed online and may be completed within a short period of time. Other services offered for the business overseas may include the following:

1. Accounting and bookkeeping services are available for those new companies that may need to start certain record keeping overseas.

2. Auditing and assurance provisions may be started for the company that is wanting to register in Singapore.

3. Consulting and advisory services are offered. These services may include financial reports and statements that may be needed for any company registration. Filing duties may be offered for a company beginning in Singapore. Each company needs a nominee director. This service may be provided by the company formation service.

4. Compilation reports are required, and these reports include financial statements that are prepared with the director’s report. These reports may be provided by the company formation service.

5. Income tax services may be offered if these are necessary for the new company that is establishing in Singapore.

6. A virtual office may be used as a registered address for the new business until a site office may be selected.

7. Employment passes may be provided in order to work in Singapore. A social visit pass is offered, and a permanent residence application is available. Other passes that may be offered include a professional employment pass, a business or work pass, and a dependent’s pass.

NEW COMPANIES IN SINGAPORE
A new company registration needs to include a company secretary and a nominee director. Employment passes may be needed as well. There are benefits involved in setting up a business in Singapore:

1. One advantage of beginning an offshore company or a BVI company in Singapore is that this type of business has a lower burden of regulation. Hedge funds are begun as BVI companies.

2. Confidentiality is frequently a reason why a company would want to set up offshore. There is a mood of privacy with any BVI company especially as the company relates to any offshore bank accounts.

GDP Timeline of PH, USA, China, Japan, S.Korea, Singapore – Economy

Read More

Private Equity Investing

Private equity is money that is invested by individuals and funds that are used to make an investment in a private company or to take a publicly traded company private. The funds in use by private equity may be raised by using institutional and retail investors. Capital from private equity is used to make an acquisition or to provide funding for new technologies. A private equity firm will try to improve financial results of an acquisition to sell at a later time or take it public. Familiarity with terms used with private equity is a benefit when discussing investments.

Limited Partners
These are institutional investors or investors with high net worth that will receive capital gains and any income when making an investment in a private equity fund. A limited partner is not involved with any aspect of the management of a fund. Investors are protected from litigation taken against the fund or from losses that exceed their original investment.

General Partners
These are people that are actively managing capital that has been invested in a private equity fund. The general partners receive a percentage of the profits made by the fund known as carried interest and will earn management fees. A general partner is also legally liable for any actions taken by the fund.

Compensation Structure
Compensation for general partners will come from any management fees or carried interest. The share of profits of an investment in a private equity fund is carried interest. The amount of carried interest on a fund is often between 5 and 30 percent of the total profit. Management fees are about 2 percent on all investments made each year.

Included Clauses
Two clauses are typically found in the compensation agreements for private equity funds. There will be a return provision and a clawback provision. The return provision is a minimum annual return a limited partner is entitled before any general partners receive any carried interest. The preferred return is called the hurdle rate and is typically about 8 percent. The clawback provision for a private equity fund allows a limited partner to get back some of the carried interest from a general partner. This occurs when a general partner has withheld a higher percentage of carried interest from future investments.

Residual Value and Cumulative Distribution
The residual value for a private equity fund is defined as the market value of the equity that remains for all limited partners in a fund. The cumulative distribution is the amount of stock or cash that is paid out to a limited partner. There are important factors for the track record of a fund.

Additional Information
Investors that are interested in private equity need to have an understanding of basic terms that are used to make smart investment decisions.

Continue reading latest main stories of private equity issues from the David Hand Crescent Point Asia and Crescent Point Private Equity info site, the robust emerging markets investment management and financial advisory firm primarily targeting in the Asia-Pacific and Middle East regions.

Hedge Funds, Venture Capital, and Private Equity

Read More

Looking at Black Hat SEO Techniques

SEO or search engine optimization is a hot topic when it comes to Internet marketing. In order to become successful in your online enterprise, you need to be very well-versed in search engine optimization. You don’t need to go hands-on, but you really need to have a solid foundation of knowledge on the topic because there are some aspects of search engine optimization that can actually break instead of shape your success.

What we’re talking about here is what they call the “black hat SEO techniques,” a group of practices that are considered unethical and could actually result to your website being banned by Google instead of being ranked. That is not what you were after in the first place, after all. By having a knowledge of these black hat techniques, you can avoid being conned by so-called optimization experts who would only bring ruin instead of success to your business.

For starters, we know that backlinking is an important part of optimizing a website for search engines, and because of that, some people abused the idea of building backlinks. They came up with what they called link farming, a practice in which a website is registered unto a website that allows it to instantly have 1000 links! Sounds good, right? The problem with this is that the links to your website are of low quality and irrelevant to your keywords. Google and other search engines have since seen through this tactic, and has made their rules stricter to ensure relevance of results to the query being made. What happens when you have joined and profited from a link building site, and search engines notice it? You’ll get slapped with a ban, and considered spam. In other words, you will not receive any ranking at all in search engines.

There’s also the practice of keyword stuffing. You see, search engines look at the content of a website to determine its relevance to the keyword query. In order to be considered relevant, you need to mention the keyword or some of its related keywords a certain number of times in the content. A healthy keyword density runs around 2-5 times for every 500 words, but some black hat SEO marketers actually push it to the limit. They stuff content with keywords, in a density that’s no longer healthy for reading but does gets past the search engines at times. For a 500-word article, black hat techniques could bring the density up to about 20 times in a single article.

When you’re looking for a professional SEO company to tap for your search engine optimization, be sure to look and ask around if that firm employs black hat techniques. You don’t want to end up getting banned, because it’s bad for business.

For professional white hat SEO services, visit SearchGuru site.

 

Read More

Serviced Offices in Great Locations

A serviced office for rent is basically an office space that has been furnished by the proprietor, who then leases it out to other parties. They sometimes are referred to as ‘executive suites’ or ‘executive spaces’. When looking to move offices, one might decide to take a leap of faith and go for a serviced office space instead of the traditional free space that is decorated once one moves in. This trend is gaining momentum as prospective clients are jostling for serviced office for rent.

Aside from being quite affordable and coming in various shapes and designs, they also offer the convenience of choosing just what is ideal for a company. These office spaces are ideal for start-up businesses and SMEs looking for office space without necessarily having to make long term financial commitments. Serviced offices for rent also make ideal tentative bases for companies in the process of relocating and are looking for temporal office space. International companies looking to test the waters may also initially dock in such premises as they try to read the signs in the market. Serviced offices to rent may also be superb for project based companies like film production houses, companies looking for periodic customer interface or a training program looking to wrap up their business in a short while.

Serviced office space offer the best deal since they boast of top notch services as opposed to a company starting out from scratch on its own. Readily available infrastructure is mostly already in place from reception services, IT support and maintenance, office furniture, electricity, to Internet and telecom connectivity amongst others are already in place. This increases the convenience of setting up a company. This coupled with flexible tenancy period with an option to extend makes serviced office for rent a very attractive venture since most of their addresses are in the CBD of a the city. The prestige associated with the posh address also makes it easy to impress customers.

While looking for serviced office to rent, one should keep it in mind that these offices are leased at quite a high cost compared to traditional offices. This is due to the availability of the afore-mentioned facilities. Working from such an address may lead to a company being viewed as highly unstable or small-minded, for leasing such temporal quarters. Access to facilities may also not be guaranteed at all times since most of them are communal.

Alvin Ang writes for apbc Offices, a leading Singapore serviced office and virtual office provider in Malaysia.

Do you know the 3 Important Aspects of a Serviced Office Space Solution? Click For More Info

Benefits of Serviced Office Space

Read More

Company Incorporation Services in Singapore

It is a fact that Singapore is famous all around the world. It is a city that is progressive, and full of opportunities. Many businessmen and companies can be found in Singapore. According to reports, company ownership and company incorporation are the key ingredients in creating a successful business. Because of this, BizCorp offers a wide variety of services that pertain to Company Formation and Company Formation services. They provide services in supporting newly incorporated companies like Employment Pass, Nominee Director, and Corporate Secretarial services. The Singapore Company Incorporation is open for both foreign and local Singaporean companies from only S$600. Aside from that, they offer a comprehensive guide on Company Incorporation in Singapore. They also disclose the benefits in setting up business in Singapore, and the basic requirements for incorporation and documents necessary for ACRA post-registration. More information about BizCorp and their offers can be found on the Internet. For your information, company name registration and incorporation can now be done online.

Watch this: Singapore Sessions, Bloomberg Television anchor, Betty Liu, discusses Asia’s outlook in 2012 with renowned global business leaders.

Read More