Category: Entrepreneurship

01- Oct2015
Posted By: Tim Ajayi
428 Views

4 Reasons to Invest in Startups

growing a startup

Why should you invest in startup companies?

Here are four areas where investing in startups and the private markets is?superior to investing in Wall Street:

Access

Investing in a Startup gives you unmatched access to the company and its affairs. You get to see minute details that you could only guess in a public company.

 

Legal Insider Information

According to Jason Cohen, “They ?say the only way to consistently make money on Wall Street is to have insider information. Unfortunately it’s not a joke, ?and although it’s illegal (and people sometimes go to jail for it ), those in the know will tell you it’s the norm.”?Remember the Martha Stewart Case anyone?? Investing in an startup gives you legal insider information on a level that could send you to jail on Wall Street.

 

Arbitrage

Simply put, arbitraging is buying in one market and selling in another while taking advantage of price differences. For savvy investors, startups present opportunity to buy low and sell high when the company is either acquired by a bigger competitor or it goes public through an IPO – which is simply a process designed ?for early investors to cash in on their investment.

 

Present at Creation

A startup is a creative force. At best, it is an innovative engine designed to push the limits of current dogmas. Startups investors are the grease that keeps this creative engine moving and they get to be present at the inception of such creative endeavors. America runs on innovation, startups thrive on innovation and startup investors fund such an innovation.

This article is based on an article first published on 2011 by Joe Alvarez Jr.?

 

 

 

24- Sep2015
Posted By: Tim Ajayi
517 Views

Top 10 Investors’ Investment Criteria

Investor’s investment criteria in rough order of importance for all investors

Source – Harvard Business School Division of Research

  1. Enthusiasm of entrepreneur

  2. Trustworthiness of the Entrepreneur

  3. Sales potential of the product

  4. Expertise of the Entrepreneur

  5. Investors liked entrepreneur upon meeting

  6. Perceived financial reward

  7. Growth potential of the market

  8. Quality of the Product

  9. Niche Market

  10. Track record of the entrepreneur

Invest

Angel groups expose entrepreneurs to a wide set of potential investors. At NewGate Capital Partners, our structured process facilitates a relatively quick and efficient investment decision. We provide insight through ongoing coaching and mentoring from seasoned entrepreneurs and executives.

 

For more info check out this guide Angel Investing 101

Want to know more? visit us at http://www.newgatecapitalpartners.com/capital-angels/entrepreneurs/

 

For the Complete list look below:

 

Investors' Investment Criteria HBR

 

 

10- Sep2015
Posted By: Tim Ajayi
37354 Views

Doing Business in an Internet World

We wanted to share with you this quote from

?Wired Magazine September edition😕

Wire magazine September cover

Business/People

“Since the days of the first web browser businesses have felt the pressure to go online.?But today the Internet connects the cities we live in and the appliances we use.??It?s how we watch TV, listen to music, hail rides, trade stocks, chat with doctors, educate kids, store files, and shop for groceries.” ?

The Internet is no longer just one aspect of doing business;?it?s the core of how business works?the essential infrastructure of the global economy.

Internet Quote

The internet has become an essential part of our lives not only in business but also how we communicate with our peers in a daily basis. Today, new generations are growing up in an electronic world, having access to computers and mobile devices from a young age. Businesses can’t ignore that and must have a presence online through websites, social media and e-commerce to keep competitive. What’s next? we will see what new gadgets bring on shaping the future of our daily lives and the global economy.

For more related information we recommend checking out:

Wired Magazine Website

What are the Benefits of the Internet to Business?

Watch this video for some social media insights in 2015:

Social Media Revolution 2015

 

 

09- Sep2015
Posted By: Tim Ajayi
396 Views

What Make us Different: Our Business Network

BUSINESS NETWORK

What makes us different?

 

NewGate Capital?Partners has?cultivated?a business network of private equity buyers through the years. These private equity buyers are investors and funds that make investments directly into private companies or conduct buyouts of public companies. The capital for private equity can be used to fund new technologies, invest within an owned company, or make new acquisitions.

These groups of institutional investors are constantly looking for new opportunities of investments. When you reach?out?to us, we work as?your partner?to work with this extensive network of private equity?buyers.

As your business partner, our job is to provide expert advice. Our mission is to work with clients as partners, creating better strategies while minimizing risk.?In other words, we?only succeed?when?you do.

 

business network NEGOTIATION

 

You can reach us anytime for a consultation

08- Sep2015
Posted By: Tim Ajayi
400 Views

Why Choosing Franchise Ownership over Starting from Scratch

So if I scared you in the last blog about the 85% failure rate you are now being realistic about your chances. I also promised a way to get into business that is less risky, ready.

I?m writing this to both newbies and serial entrepreneurs, consider a proven concept with a well-established franchise. Of course, you already know all about that and have been receiving vast amounts of promotional material from various Franchise ownership and development departments. They want you to buy a NEW location. While their concept might be proven, locations seldom are. However, good Franchisors have good methods for picking locations. So what do I have to say that?s different?

I suggest you seek out existing franchises that are either underperforming or the owner (franchisee) just needs or wants to get out. Franchisors know about these folks but will not suggest this upfront as their fees are much less when a transfer is made. In fact, at any one time at least 20% of a Franchise portfolio is in transition or holding the ownership of the franchise is looking to move out a poorly performing location because the owner is just a bad manager or lazy thinking he or she didn?t have to work at the business. This can be the ?chicken? way of getting into a?business as there are good records and you?ll know what you are getting into. Plus, it will have revenues day one! You will most likely get into this existing location around 30% less than if you had started it. Now that?s a better deal. We like to be creative in finding deals for folks.

For you serial business folks with deeper pockets, there are often groups of locations available for many of the same reasons above. You can buy the whole package or pick and choose for a slightly higher price. Either way, you get a viable, ongoing group of locations priced based on their current performance, not the excellent performance you will get out of them once you apply your smart management talents. Choosing franchise ownership can reap great benefits.

By

Steve Ivey

04- Sep2015
Posted By: Joe Alvarez
336 Views

Business ownership: A Going Concern or Start from Scratch ?

Previously we were discussing, not whether to go into business, but the decision of which method made sense for you. A chicken or egg scenario. Do you start from scratch with just an egg? An idea that has yet to hatch but holds great promise or do you purchase some chickens, a going concern that is producing revenue and , hopefully, income.

Under the egg method you must have time. Time to weather the delays of a startup; the lack of customers, employees, revenues and spendable income. In fact the reality is you will most likely go deeper in the debt hole having no personal income for many months if not years. Do you have that kind of staying power (reserves)? Investors, if you can find any, will not allow you to spend their money on your living cost. So for sake of analysis let?s examine which is better, the chicken or the egg.

Your egg has a cost obviously much less than buying a group of chickens. But it does not produce current income. Let?s say you have spent $50k on your egg (idea) so far. Even when it hatches you?ll have to build up your ?coup? of chickens letting other eggs hatch not taking income while this process build. You now have another $200k sunk into your business and / or debt from living expenses.

At $250k you could have bought a chicken farm, a revenue producing enterprise. You?d have debt but also income. You?d be buying a proven business because you did your due diligence and know the stream of revenue the business has been producing. You might have to spend a few dollars for sprucing up the business; perhaps a new marketing campaign but you have INCOME!

But my egg is a fantastic idea. Could be, I hope so. BUT 75% of all new businesses fail by or before year 3 and 85% by year 5. Risky?? You bet! Still want to be in business? Good. We?ll discuss alternative ways to make that happen while lowering the risk next.

Steve Ivey

24- Aug2015
Posted By: Tim Ajayi
289 Views

Keep it Confidential: When Selling your Business

Confidentiality when selling your business

confidentiality - Selling your business

The best way to relate to a situation is imagining you are there. If I were in a job, everything is going well, and then, rumor has it the company is on sale. The first thing it would come to my mind would be, what?s going to happen to my job? Should I start looking for a new one?

When selling a business the best is to do it discreetly for many?reasons:

News that your business is for sale can generate negative reactions among your employees, customers, suppliers, creditors and bankers.

As an employee, I believe this would lower the morale and make others nervous affecting productivity and customer service. Your competitors can get predatory and spread the word. It opens the door for them to steal business from you.

You, as a business owner, want to protect your business at all costs. Whatever is the reason for you selling your business, it is imperative to be discreet. Hiring a business broker can be beneficial when it comes to selling your business while keeping a low profile.?? They can list your business for sale while at the same time protecting the identity of your company.

A business broker uses a document called a Blind Profile, a document describing the company without revealing its identity.? In the case of a buyer showing up, he must sign a confidentiality agreement to have access to any sensitive information, protecting you and your business.

You as a business owner should focus on running your business even if it?s on sale. A business broker is an intermediator who will help you to run the process smoothly from beginning to end.

 

NewGate Capital Partners can help you sell your business.?Contact us anytime at?http://www.newgatecapitalpartners.com/business-brokerage/

 

 

13- Aug2015
Posted By: Tim Ajayi
350 Views

Why Hiring a Business Broker when Selling your Business is a Wise Idea

 

     

     

    Selling your business adFor starters, a broker is an independent agent whose main responsibility is to bring sellers and buyers together.? For example, if you hire a real estate broker to sell your house, the broker acts as a middleman, he doesn?t own the house, and he instead facilitates the transaction.? Just like with a house if you have a business, you as an owner can sell it yourself. However, there are many reasons why you should consider hiring a business broker:

    • Paperwork: Do you know how much paperwork you will need if you are selling? According to the Small Business Administration SBA you need to prepare a sales agreement. What else? You can invest your time doing the research on your own? OR consult a business broker. A business broker?s expertise consists of navigating through extensive paperwork and the formalities in a daily basis. Don?t forget that time is money!
    • Business Continuity: Selling a business is a full-time job as it is. The owner should maintain its focus on running the business and take it to its full potential. All of these while selling.
    • Confidentiality: If you are an owner and are selling your business how you keep the matter confidential from employees and other stakeholders. You don?t want anyone to panic. The situation can be disruptive to the normal operations of your business. If you choose a business broker, he can protect the identity of your company while on sale. They can use a blind profile, a document describing the company without revealing its identity. We are going to talk further about ?Confidentiality when selling a business? in our next blog.
    • Valuation Knowledge: Brokers can help you determine the value of your business. They have access to tools such as business transactions databases. There are also other variables that affect the value of your business. A broker can guide you in the right direction in to calculate the accurate value of your business.
    • Marketing: business brokers can help you market your business. They can suggest you diverse ways to advertise and put your business out there.?

    Ultimately, the decision is yours, you should take in account the variables of time, money and resources and put on?a balance and see what works better for you and your business.?

    New Gate Capital Partners is here to answer your questions, we can help you to sell your business. ?Feel free to check out our?business brokerage page.

    ?

12- Aug2015
Posted By: Joe Alvarez
376 Views

MYTH: ANGEL BUSINESS INVESTMENTS DON’T DELIVER RETURNS

Million dollar myth: Sydney Angels co-founder Hamish Hawthorn says as little as $15,000 can get you access to an angel investment opportunity, and it?s not only grey-haired men that participate.

business investments

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MYTH: ANGEL INVESTMENT DOESN?T DELIVER RETURNS

Angel business investments are certainly a high-risk area. Half of all startups, even after good screening, due diligence and post-business investments help, will fail to return what was invested. But these losses can be more than compensated by the few that return 10-30x the initial investment. The key to making returns is to have a portfolio of enough investments to contain some of these big winners. Those who use a disciplined investment process to build portfolio can see extraordinary returns from the startup sector over time.

A large-scale study undertaken by the Kauffman Foundation and NESTA found that angel investors in the US and UK generated an average return of 2.5 times the amount invested in a mean time of four years from investment to exit, equating to a?very healthy 26% internal rate of return. “

 

 

Excerpt taken from article: ?”We?re not all retired blokes, and 4 other angel investor myths busted” by Sydney Angels co-founder Hamish Hawthorn? http://www.brw.com.au/p/entrepreneurs/hamish_busted_sydney_angels_retired_O6yEoclYtKcIHAJ0S1n56H

 

 

 

 

06- Aug2015
Posted By: Tim Ajayi
269 Views

Thinking of Selling your Business

You are contemplating selling your business and don?t know where to start.

We suggest asking yourself some basic questions, start from there, and then talk with your trusted accountant and/or attorney.

 

 

The main question of all: Should I sell my business?confused about selling your business?

 

– What are the reasons you are selling?

-Why are you selling your business?
– Is my business ready to sell?
– Is the business profitable?
– What type of professionals do I need in my team?
– Are the current market conditions right?
– What?s the paperwork?
– What about taxes?

 

These are just a few of several questions you may have and that you need answers before selling a business.

Selling your business may be a daunting journey but it doesn’t have to be scary. You can have many reasons why you are considering selling, it may be burnout, retirement, health, it?s time to pursue other passions or you are leading a different direction in your life. Whatever it may be, NewGate Capital partners are here to assist you in the process. For us, each potential new client means the opportunity to provide something exceptional, focusing on important things like performance, integrity, and trust.
We are a team of Florida business brokers ready to assist you in selling your business. If you have more questions about how to sell a business, feel free to contact us anytime at http://www.newgatecapitalpartners.com/business-brokerage/

Recommended article:
Thinking of Selling Your Company? 8 Things to Consider First