Tuesday, 18 Dec 2018
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Raising capital to start a new business may seem very stressful, but it need not be overwhelming if you follow a few basic business practices. If you have a viable idea that will net a return for your investors and prepare a compelling business plan the chances are good that you can find investors to join you.

If you’re thinking about getting outside or equity capital to help fund your business, there are some things you need to do first, that can make your business more attractive to investors. Follow these simple ideas, and you’ll be well on your way to raising the money you need.

First, always talk to a qualified business attorney (not your family lawyer). There are a lot of laws pertaining to how equity capital can be raised from the public, and the laws change often. You need someone who understands not only these laws but also how to make sure that any business contracts are written to protect you and your business.

Talking about your company public. Although security laws in some countries have made it easier for companies to go public, and offer stock as a way to raise needed funds, this is still probably the riskiest choice. It is usually not a recommended option for very new or very small companies. Because of the number of legal issues involved, consulting with a knowledgeable attorney beforehand is vital. There is also a lot of stress involved in running a public company, and a considerable loss of autonomy and control. Before making this choice, be absolutely sure that this is the wisest course of action for your business.

Using your savings or credit cards. This is the most common way for entrepreneurs to raise needed business capital. Before choosing this method, however, talk with your financial advisor. You want to look at the long-term consequences of using your savings, life insurance or credit cards, especially in the event that your business venture fails, or does not bring in the projected return on investment (ROI). If you do end up financing your project using credit cards, make sure that you shop around first, and find the card that will offer you the best rate and gives you the most “bang” for your buck.

Venture Capital and Angel Investors. Before even looking for venture capital, look at your company from an outsider’s point of view. Ask yourself these questions: Does your company have a solid track record?. Does your company have the potential of becoming very large in the next five to seven years? Does your company own a good percentage of its market, or does it stand to gain a large percentage in the next 12 to 18 months?. If you can answer yes to the above questions, your next step is to find a venture capital firm whose ideals and goals are in line with yours. Your next step should be to look at your “circle of influence” and see if you know someone who can give you a personal introduction to someone at the venture capital firm.

No matter which choice you make in looking for equity capital, by planning ahead, doing your homework and following the advice of your attorney, you’ll increase the probability of raising the money you need and making the relationship between you and your angel investors manila a profitable one.

music

For promotion companies, new record labels, distributors, and other music-related businesses, looking for a raise in the capital has unique benefits and challenges. It is not a secret that monies are hard to find businesses in the music industry given that they can benefit from the arts councils or government sources. Add to that, it is tricky to find investors without having to concede the creative control of the company.

Here are some options that you can consider.

Venture Capital Firms

You can get capital from venture capital firms in exchange of equity stake in the business. However, most VC firms are looking for startups that have already reaped a bit of success and have gone further into its life cycle. One advantage you can get is that VC Firms funds businesses in several rounds. Unfortunately, there are only a handful of VC firms with experience and are willing to work with companies in the music industry.

Angel Investors

Angel investors are usually wealthy individuals who want to venture on various businesses in different industries. They usually fund a company only once unlike with the VC firms. Angels are investing around approximately $20 billion each year in more than 60,000 businesses. Over the years the traditional networking to find an angel investor has changed with the help of online platforms.

Art Councils

There are many art councils and non-profit organisations who support music in a form of a grant. The amount of money is often less than what investors offer but the main advantage of this option is that money does not need to be repaid.

Major Record Labels 

Record labels can either develop as a joint venture with independent labels or invest alone in a music company. However, you might have to give up something in return.

Distributors

Small independent labels sometimes do not have the means for distribution. In exchange for helping get the project off the ground, the distributor often asks for a certain percentage of the net profit.

Have you ever wondered where your money went? I bet, you would be ashamed to admit
that you spent a lot on things and activities that you enjoyed. There is nothing wrong with
that if you do it moderately. However, life can be tricky and put you in financial woes in
case you lose your job, you get sick, or you met an accident. Preparation is still the best
policy. Prepare now by making viable investments.

Check out these two investments you can give yourself:

Variable Life Insurance
Wise people know that a life insurance is the best gift they can give to themselves and their
loved ones. No matter what happens in the future, having a life policy gives you peace of
mind. You are protected every day of your life. You can even retire early if you want and
pursue your other interests.

This type of insurance offers more than just the benefits that your family will receive when
you die. The money you pay for premium grows. You earn corresponding dividends that
are withdrawable. If you need money for emergency purposes or to finance a business,
apply for a loan with your life insurance.

Credit Card
A credit card is a good investment because it helps you buy things without interest.
However, it is necessary to pay your credit card bills on time to avoid charges. To make it
advantageous, use it only for necessities.

Another benefit of credit card is building a credit history.  Creditors use your credit score as
one of the basis to approve your loan. It also facilitates your application for postpaid plans
on mobiles and other utilities.

Now that you know how these two investments can help you secure a better future, you
can start saying “no” to non-essential purchases. Invest now and reap the rewards soon!

Investing in a property is a crucial decision everyone can make, you have to be responsible
for settling the payment on time. Failure to comply even in just a few missed payments,
there are corresponding penalty fees and consequences.

The first thing you should do to avoid foreclosure is to reach out to the mortgage lender.
Make time to set an appointment with them to figure out possible ways to prevent
foreclosure, because you already have few missed payments on the record. Some mortgage
lenders will definitely agree to offer some leeway but with penalty fee whichever is higher.

Fortunately, as soon as possible you can discuss to them your financial problem, other
mortgage lenders might understand and be willing to accept partial payments.

The second option you have is to declare bankruptcy, doing so if the process of foreclosure
begins, it can help to halt the process. It means, declaring bankruptcy will stop the
mortgage lender for a while in bothering you as well as to get your investment. In this way,
the lender cannot proceed until such time that your case is over, that’s the only time the
court will release permission to “lift the stay” towards the lender.

Moreover, you still have to pay your outstanding loan after you declare bankruptcy.
Though it allows you to have some time saving up to settle the payment, it also affects your
credit score.

The last option you can do is to find an investor and sell your investment. If you don’t want
to deal with the different impacts of declaring bankruptcy to your credit score, future
employment and loan applications. There are investors who buy houses as is without the
need to renovate the house and fix the damages, they can immediately provide cash offer.

We know investing is good, as we have become prepared for the future and the sake of our
children. But, if you don’t know how to manage your investment well, you will lose it. Think
before you invest.

The Philippine Statistics Authority or PSA in the short term has released a statement
indicating that self-employed professionals or freelancers are the second largest class of
workers in the country for the year 2017. In fact, independent professionals dominate the
27.8% of workers in the country.

It may be tempting not to file your tax since you are working from home and it seems that
the salary is just enough for the daily expenses. But, paying taxes will benefit you in the
long run.

Here are the documents you need to prepare when you are about to file your tax as a
freelancer:

  • NSO Birth Certificate
  • An affidavit that includes your services, rates and other related billings.

If applicable, here are the other necessary documents such as the DTI Certificate of
Business Name, PRC ID, and payment of professional tax receipt.
Due to the TRAIN Law (Tax Reform for Acceleration) here in the Philippines, there are
exempted freelancers in paying tax.

1. If you have an annual income of Php250,000.00 and below, congratulations you are
exempted to the rule.

2. Php250,000 to 400,000 earners would need to pay at least 20% of excess over
Php25,000.00

3. For freelancers earning Php800,000 to Php2,000,000.00 you need to pay as much as
Php130,000 plus the 30% of exceeding the Php800.000.00

4. Php490,000 plus the 32% of excess over Php2,000,000.00 are required to pay as
your tax, if you are earning almost Php2,000,000 up to Php8,000,000

5. For earners with an annual income of Php8,000,000 and above, the tax you have to pay
is amounting to Php2.41 million plus the 35% of excess over Php8,000,0

Freelancers include the bloggers, virtual assistants, writers, web and graphic designers,
web developers and other individuals who are catering the clients with specialized
services.

Paying your tax is not an option but an obligation.