Funding Opportunities

Whether expanding an existing business or establishing a new project, financing can be an enormous challenge. The funding requirements forces decisions to be taken on the ownership structure, succession plans, debt funding, management incentives, employee share ownership participation and most importantly, an exit strategy, to guide success.

The ownership structure can be a mix of common (by class) or preference shares, with different powers (voting rights) and rewards (returns options) and requires a skilled financial negotiator to get the best mix. The best arrangement to the ownership structure of any business or project is determined by the entity (individual or group) that intent to provide the most valued capital (the key component that the business or project needs the most). Hence the golden rule, the one with the gold makes the rules. So the ownership structure is decided by the one with the most to lose.

Understanding Financial Institutions

Money is an economic tool created to measure ownership and development activities, giving rise to many opportunities for countries, groups and individuals to measure net worth (the difference between the value of what is owned against what is owed) with the same tool, money. Tracking the exchange of property, goods and services is therefore the function of the financial system compiling many complex entities.

Financial Institution, in a free market system and in most of the developed world, is a legal status given to an organization holding a license from the relevant and recognized regulatory body to operate depository accounts on behalf of a public. Ideally, this license grants the right to the issuer and regulator to examine and step in and take any necessary action to protect depositors’ accounts, most of which are protected to a specified limit by depositor’s insurance backed by taxpayers and the regulator’s statutory deposits from the pertinent financial institution as a percentage of all deposits held.

Support Services

As some previously employed professionals seek to offer their services, they must come to grips and understand and respect their own limitations and the need for strong support services. These support services normally include; the development of a creative and detailed business plan to address all foreseen aspects towards operating a successful practice, the setting up or establishment of a legally registered entity to offer personal protection to all stakeholders, the design of a marketing plan to communicate and promote the business and the periodic reporting on and filing of financial statements.

Creating Work

By now, even small communities, whose local banks were not directly involved in sub-prime lending or whose major industries were not directly affected by the global financial crisis, have been experiencing wide spread job losses as recession takes hold of the world. The unemployment offices and recruitment agencies are very busy advising job seekers to be patient, to update résumés and to sign up for career enhancement training. Use this time productively to take a break, sharpen skills, build networks or generate ideas.

For those who can afford to, having set aside some savings, take a vacation. The rest or change in routine will bring enormous benefits to one’s physical and mental health, restoring relationships with loved ones and generating new life altering ideas and strategies.