Second Quarter Issue| AUG. – OCT. 2015
How Healthy is your business? Mobile Business Clinic 2014-2015 … the Journey so far
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Mobile Business Clinic 2014-2015 … the journey so far How Healthy is Your Business? Opportunities for MSMEs in a Logistics-Centred Economy
11 Why Networking is the Cheapest Way to Market your
Business
Celebrating Christmas in July 12-13
Celebrating Christmas in July
14 How to use Social Media for Small Business 16 Four Technology Trends for Small Businesses
Mobile Business Clinic 2014-2015 … the Journey so far
18 Understanding Your Tax Obligations (18) 20 Receivables Financing from EXIM Bank (20) 22 Five ways of Funding a Business (22) STAFF : Ms. Valerie Veira, J.P. Chief Executive Officer Mr. Harold Davis Deputy CEO Editor-In-Chief & Coordinator Sancia Campbell – JBDC Corporate Communications Unit Design & Layout Melissa Green – JBDC Visual Communications Unit
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Sancia Campbell is a PR Practitioner in the business and hospitality sectors with over 13 years experience in marketing, publicity and communications. An excellent writer and avid lifestyle blogger, Sancia enjoys reading, project management and events planning. She is currently the PR & Events Coordinator at the Jamaica Business Development Corporation (JBDC).
It seems just weeks ago since the JBDC team and partner agencies boarded the bus to Montego Bay for the first Mobile Business Clinic. In fact, seven clinics have been presented to date. The evidence analyzed have confirmed that the exchange of information between the participants and the agencies have been significant and impacted the development of enterprises programmes and policies. As the team prepares for the presentation of the other clinics, adjustments and additional features will be included based on the philosophy of continuous improvement. This includes the “Business Suit” feature on day 2. This is designed to be a series of specialized services of presentation on issues of special relevance to the MSME sector. It is this united approach to development that will contribute to the growth of our economy. Let us contribute to collaborate for development.
Althea West-Myers is Manager of the Business Advisory Services Department at JBDC. As a development strategist, she has spent the last eight years researching and adapting successful global strategies to the Jamaican MSME environment. An enthusiastic learner, Althea is also an adjunct lecturer in entrepreneurship, Business Principles and Management and Human Resource Management. She spends most of her free time in personal development activities, actively mentoring youth and writing dramatic productions. Ultimately, Althea desires to influence national growth, one entrepreneur at a time.
Andre Heslop is the Public Relations Assistant at the Jamaica Business Development Corporation. He is a graduate of the University Of Technology, Jamaica and holds a BBA in Business Administration with a major in Marketing. He has worked in a range of capacities within the marketing field from Marketing Officer to Customer Care Representative and has extensive experience with customer relations. Mr. Heslop is also a managing partner of the emerging Social U Consultants Company, a social media marketing firm.
Ainsley Brown is a Policy Analyst in Ministry of Industry, Investment and Commerce (MIIC) Logistics Hub Taskforce Secretariat. A Canadian trained a lawyer, Ainsley returned home to Jamaica in 2012 to make his contribution to the nation’s development having observed Jamaica’s thrust to position itself as a global logistics hub and a logistics centered economy. As a Policy Analyst he deals with a wide range of high priority technical matters in relation to the Logistics Hub Initiative. He holds a Masters in International Commercial Law from the University of Westminster (UK), a Common Profession Diploma in Law from London Metropolitan University (UK), and a Bachelor of Arts in Political Science from the University of Western Ontario (Canada).
Other Contributors: Tax Adminstration Jamaica EXIM Bank
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Valerie Veira, J.P. CHIEF EXECUTIVE OFFICER, JBDC
BUSINESS & INNOVATION Mobile Business Clinic 2014-2015 ‌ the Journey so far
Mobile Business Clinic May Pen
The Jamaica Business Development Corporation (JBDC) and its team of business support experts have been lending their expertise to Entrepreneurs island-wide through the Mobile Business Clinic Initiative. So far a total of eight parishes have benefitted from the interventions. These include St. James, Trelawny, Manchester, St. Elizabeth, Clarendon, St. Ann, Hanover and Westmoreland, effectively servicing the western and central parishes. With only four (4) locations remaining St. Mary/Portland, St. Catherine, St. Thomas and Kingston the initiative is on schedule to complete the first year of the three year project by February 2016. The initiative has been greatly received by the MSME sector and more than 1600 entrepreneurs have been assisted by an average of ten (10) exhibitors at each location. These exhibitors include Rural Agricultural Development Agency (RADA), Self Start Fund, the Bureau of Standards Jamaica, Jamaica Logistics Hub Secretariat, the Jamaica Intellectual Property Office (JIPO), Development Bank of Jamaica (DBJ), Fair Trading Commission (FTC), the Trade Board, Consumer Affairs Commission and Jamaica Promotions Corporation (JAMPRO) ensuring that all aspects of the business process are addressed in the various industries.
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Through the numerous methods of engagements one-on-one sessions, networking sessions, start-up workshops, idea assessment and consultation, entrepreneurs at every end of the spectrum are catered for and provided with insights to the business world. Additional features such as business health checks and an export, trade and tax advice presentation also ensures that existing businesses are able to benefit from the Mobile Clinic as well. The next scheduled stop for the Mobile Business Clinic is in Eastern Jamaica where St. Mary and Portland will be the first of the remaining four (4) locations to be addressed. This public/private sector initiative is jointly sponsored by the National Commercial Bank, Fidelity Motors, Columbus Business Solutions, Development Bank of Jamaica (DBJ), Fair Trading Commission (FTC), the Trade Board, Consumer Affairs Commission, Food Safety & Prevention of Infestation Division (FSPID), Jamaica Promotions Corporation (JAMPRO), and the Jamaica Urban Transit Company (JUTC).
Self-Start Fund at the Mobile Business Clinic in Santa Cruz
BUSINESS & INNOVATION How Healthy is your business? By Althea West-Myers
Health is wealth. That’s as true for business as it is for human beings. If a business
spend their time working IN the business, when time is most effectively spent
is to remain viable it must maintain its health throughout the various stages of its
working ON the business.
life cycle. In other words, it needs regular health checks. The business owner must keep her finger on the pulse of her operations. She must learn how to take
What becomes obvious, then, is that for a business to remain healthy and
the temperature of her business, to develop appropriate metrics for monitoring
flourish, its owners must become strategic in their approach. Successful
and measuring progress; to benchmark against industry standards; to assess her
entrepreneurs focus on strategy. This is not to say that understanding the
own performance against her competitors. How else will she know if the
operations of the business is unimportant. On the contrary, successful
business is flourishing or floundering?
entrepreneurs understand their markets; they are passionate about the field they are in, and often they are masters of their craft. Still, they know that the
What we know to be true about many major health issues that human beings
weightier matter is in knowing the numbers, understanding the bottom line, in
face is that very often they do not manifest themselves until they become
implementing proper governance procedures, goal setting and measuring,
terminal. Cancers, blood-pressure related illnesses, heart conditions, all have
and ultimately monitoring the business’ general state of well-being.
proven fatal for unsuspecting victims. For the entrepreneur who has not learnt to make health check-ups a routine process, a previously undetected business
All too frequently the big picture questions of “how am I doing?” and “what is
health condition could prove fatal.
my temperature?” go unanswered because entrepreneurs do not learn how critical it is to step back and assess the health of their business as a matter of
The average entrepreneur spends his time making a great product, developing
course. Successful entrepreneurs understand the value of controls. They ensure
a great service offer, generating sales, building customer relationships and
that a system exists for monitoring direction and performance, and adjusting
managing employees. So then how does this entrepreneur, already neck-deep
these where necessary. They understand that without systematic monitoring,
in the day-to-day running of his business, find the time to do regular health
there can be no accountability, and without accountability, there can be no
checks? In the first place, how does he even gain the necessary experience to
effective management, and things drift.
do so? Will it require ‘importing’ specialized labour? It may, but let’s back up a while – just in case I’m sending you into panic mode.
So then, what can an entrepreneur do to secure the health of his business? What does he do to ensure that, as far as possible, all the ‘organs’ of the
We spoke earlier of the entrepreneur who spends his time immersed in the operations of the business. As chief baker he keeps the bakery going, he immerses himself in knowing the ins –and-outs of the operations. And there-in lies the reason several businesses never experience real success: Entrepreneurs
business are functional and integrated? Importantly, there are at least four key
*
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BUSINESS & INNOVATION How Healthy is your business? contd* areas of the business that require constant and consistent measurement and
you increase your market size? Have you increased your customer base in the last 12 months? Does the internet play a role in helping you to reach your target
management: •
Governance structures
•
Customers and markets
•
Operations and production
•
Financial Management structures
These must all integrate efficiently. And all must be healthy in and of themselves. Let’s take a look at each of these:
market? Do you have a marketing plan in place, and are you aware of your unique selling points. What is your value proposition? Have you added to it, changed it? Are your customers aware of it? And finally, it is time to put our fingers on the financial pulse of the business. Do you use key financial metrics to benchmark your performance against industry standards? Do you know your quick and current ratios and how these compare
First, let’s examine the governance structures. Health measured here involves determining whether the entrepreneur sets and monitors long term and short term goals, and how appropriate these are. The business owner should be interested in assessing whether new processes, new products or new ideas have been introduced in at least the last twelve months; obviously, the more
to your competitors and peers? How much operating cash do you have available at any point in time? Will the business earn more money this year than it did last year? How long has it been since you have looked at key indicators such as gross revenue, net profits, profit margins, revenue growth, liquidity and turnover ratios? Have you compared them against industry performance?
innovative the business, the greater the likelihood of success. How is your succession planning? Are your key activities being properly managed? Healthy governance structures are inclusive and take advantage of crucial partner relationships. Your health check should help you determine the strength of your network. Obviously, you are looking for gaps, holes to be plugged, leaks to be stopped. You are interested in intervening before your condition becomes terminal.
Of course, businesses exist to make profit. But in the same way we are told that ‘abs are made in the kitchen,’ a company’s bottom line is not assured at the accountant’s desk. Good governance is crucial to efficient operations and production. Product or service quality impact marketing and sales, as too, number of customers gained and retained, which ultimately impact the numbers, the bottom line. What becomes clear in all of this is the interconnectedness between the various elements of the business, and how,
But what of the enterprises’ operations and production – its circulatory system? A company’s operations and production are the crux of its business. This is where
similar to the human system, failure of any of the ‘organs’ of business may be fatal to the enterprise.
it all happens…..or so it seems. Not having the appropriate tools and equipment can result in ‘arterial blockage’. A poor inventory management system might affect the blood flow through the company, significantly damaging the business cycle, resulting in serious loss of revenue. Weak supplier relationships have the potential to negatively impact not only your business but the entire value chain. Do you use quality control systems such as customer service standards in your business? Are you aware which area of your business generates most income? The answer to these questions might be critical to your business’ existence.
It’s true, a quick check of your balance sheet and your financial ratios could tell you whether your business is doing well or failing. But long before the numbers start telling a story, the symptoms may be appearing in any of the other places I just mentioned. For example are you frequently running stock levels below efficient operating capacity? Is your business very reliant on one or two major customers? Are your creditors stopping or reducing supplies? Are you selling your products or services at a substantial discount just to bring money in?
Systematically trying to answer questions like these will help you keep your finger on the pulse of these issues in your business.
Yep, the signs show up everywhere. You must be vigilant in order to arrest them, but better yet….do regular check-ups. Prevention still is better than cure. Take it
Now, let us examine the respiratory system, your customers and markets. Do you conduct regular market research to keep abreast of customer wants and needs? What is your current market size? Do you have strategies in place to help
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from the business doctor, a check-up may mean the difference between life and death!
BUSINESS & INNOVATION Opportunities for Micro, Small and Medium Enterprises (MSMEs) in a logistics centered economy By Ainsley Brown
The logistics centered economy is a complex concept. However, it is essentially
COJ. More importantly, she was excited to learn of a possible new way of
about creating sustainable economic growth by removing the obstacles to
expanding her business by revisiting the idea of deliveries which she had earlier
economic development. This is being achieved through policies directed at
tried but later discontinued. She embraced the idea that she could further
creating a business friendly environment, increasing our connectivity through the
expand her growing and lucrative made to order – in logistics speak, fulfilment –
use of technology and increased transportation links. In fact it is through this
part of her business by using the existing transport infrastructure she had running
process of reform, which includes businesses finding new and innovative ways to
right outside her restaurant. Rather than invest a lot of time and money in setting
create value that the opportunities lay for Micro, Small and Medium Enterprises
up and operating a delivery system she could use her cell phone and the
(MSME). The MSME sector has been the primary target of many of these reforms
connections she had with the taxi drivers to work out a delivery system.
not just because they form the majority of businesses in Jamaica, but mainly
The second story is about a farmer who lives in Linstead and decided to tap into
because as the Minister of Industry, Investment and Commerce, Anthony Hylton
the lucrative, US $400 million ornamental fish export market. This farmer in his
has consistently said “when you solve the fundamental problems facing the
operation may benefit from the North/South highway increasing the speed and
MSME sector you invariably improve the overall economy.”
durability of his fish to get to the airport for export. He would have also benefited
The Logistics centered economy is not simply an internal response to Jamaica’s
from the removal of export licenses by the Trade Board on ornamental fish and
economic challenges; it is also an opportunity to respond to those challenges by
the expanded market access from the air service agreements with countries like
taking advantage of trends in the global economy. These trends have seen
Singapore and Turkey.
manufacturing becoming more global, specialized, fragmented and services
The final story is about Kington Wharves (KWL) and their US$100 million investment
dependent. This in turn has resulted in certain sectors critical to trade, including
to upgrade and expand their port facilities and to build its Total Logistics Center
logistics, shipping, aviation, finance, and information communication
(TLC). KWL provides the clearest example to date of how MSMEs will benefit from
technology being concentrated in strategic locations – logistics hubs.
the establishment of Special Economic Zones (SEZ). While KWL has targeted large
So what are the opportunities for the MSMEs?
global companies for its TLC it has incorporated Jamaican MSMEs in its plans by
Opportunities abound for the MSMEs in a logistics centered economy, moreover,
creating backward linkages to the local economy. One example of this is the
many of these opportunities do not lie in the distant future but are here and now.
creation of a specialized area for the food vendors who operated just outside of
The issue however is, how best to illustrate these opportunities. The telling of stories
the gates of the various properties it bought and consolidated for its investment
is a good medium.
and who would otherwise have lost their livelihoods. What KWL has done in its
The Mobile Business Clinic has crisscrossed the island providing a platform for
transition from Free Zone to SEZ is to create the first SEZ ‘goods and services
many fruitful and insightful exchanges at a grassroots level about the logistics
providers’ as outlined in the draft SEZ policy. Moreover, these and other goods
centered economy. One of our all-time favorite came in Savannah-la-mar,
and services providers will further benefit from the removal of the GCT
where we met a restaurant owner who had come to the Clinic to take
disincentive that was charged on their goods and services making them even
advantage of the business advisory services being offered by the Jamaica
more competitive to imports.
Business Development Corporation (JBDC).
These examples illustrate, among other things, that the logistics centered
This lady was excited to learn that her restaurant, even though not an export
economy while based on logistics, isn’t only about logistics. In fact it would be
oriented business, was very much a part of the logistics centered economy. Her
more accurate to say that what we are truly talking about is a logistics, value
business had in fact benefited from the ease of doing business resulting from the
added, production, warehousing, and distribution economy. But I am sure you
Company’s Office of Jamaica’s (COJ) ‘Super Form’ which consolidated the
would all agree that doesn’t roll of the tongue as well as logistics centered
many forms needed to register her business into one and reduced the time, and
economy. What they also show is that opportunities are here and now; and
money needed to interact with various government agencies to just one, the
ready to be seized.
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BUSINESS & INNOVATION
Why Networking is the ‘cheapest’ way to market your business By Sancia Campbell
It’s unofficially known as the art of ‘schmoozing’ but for the micro or small Entrepreneur, ‘schmoozing’ more formally known as networking takes on new meaning when the need to promote a new product or more particularly bolster the marketing programme for your business arises. Today more than ever, networking has taken on critical importance for Entrepreneurs. Tighter than usual economic conditions have forced many small businesses to cut their marketing budgets; despite this, it is still necessary for businesses to position themselves at the top of the consumer’s mind when buying decisions are ready to be made. Networking steps in for businesses that need a marketing strategy which is targeted and consistent. The idea of networking has been used since the beginning of time to share information, socialize and gain contacts. Referrals, a major plank of networking; was then simply known as ‘word-of-mouth’. However, with entrepreneurship emerging as a path now frequently travelled by many individuals; the need arises for business persons to increase the value of interaction amongst themselves. Networking is a socioeconomic activity by which groups of like-minded businesspeople recognize, create or act upon business opportunities. Networking helps Entrepreneurs to connect with influential people, meet and prospect new clients and develop relationships which increase business, enhance the entrepreneur’s knowledge and expands his sphere of influence or service in the community.
concise, and aim at leaving a good impression. It will be the difference between total boredom and piquing the interest of the prospect. 2. Be different – Imagine going on a job interview; all the candidates have similar qualifications and job experience. What will get you the job is that thing that differentiates you from all the other candidates. It may be that there is no difference so you must find a way to create one. Likewise with the product or service you are offering, sometimes it is merely a matter of redefining or placing emphasis on one aspect or another of the product. Importantly, the difference must be something that the prospect finds appealing. 3. Help others – ‘Do unto others as you would have them do to you’ is not only a popular saying but it’s also a true to life principle. Be helpful to others and you will be helped in return. Networks of people are highly complex - often it is not possible to see exactly how and why they are working for you, so you must trust that goodness is rewarded, even if the process is hidden and the effect takes a while. 4. Keep your integrity: Build trust and reputation - Building trust is essential for growing a strong business network. Lack of trust prevents successful business networking. Certain connections are absolutely impossible to make until a very high level of trust is established. Always keep your integrity.
In many ways, Networking presents one of the ‘cheapest’ options for marketing a business. Of course, the word ‘cheapest’ is used loosely as it works in conjunction with other marketing strategies which would have been in place prior to beginning the networking process. Importantly, it should be noted that networking is not a formal activity! Entrepreneurs should be prepared to make key business connections anywhere and at any time.
5. Seek relevant groups and connections – Go for contacts that you can really use. If you are a farmer trying to identify markets for your cash crops, there is nothing to be gained from attending a Horticultural festival. Any buying that this audience does from you will be small scale and will not even begin to fulfill your need for a larger buyer who can take this crop and quite possibly future crops. So don't go aimlessly after every networking opportunity which comes your way; instead try to find networks and contacts which will be most helpful to your aims and capabilities - ideally remembering that you need to be able to help them, as well as they should be able to help you.
The number one salesperson for any business is the Entrepreneur. No employee or consultant can sell an original idea like the creator. The entrepreneur must therefore be intimate with his business and be ready to get out of the office, meet new people, shake some hands and get known.
6. Plan your networking, know what you want and manage it – As an entrepreneur, networking must be planned. Go into every networking session with goals and expected outcomes that way you will be able to track your progress and manage your networking.
Good networking skills have two main ingredients: confidence and information. A confident entrepreneur can sell just about any product or idea. Being knowledgeable about your products complements this confidence. If equipped with the right information, an entrepreneur can successfully grab a prospects attention and engage that prospect not only to the point of closing the sale but also secure future and referral business.
7. Follow up – What is the point of networking if you do not follow up with contacts? How then do you secure business, build your reputation as a business and build trust? Networking only produces good results when it’s followed up.
In addition to the named skills, Entrepreneurs also need the following principles to network successfully: 1. The Elevator speech – Commonly called the ‘elevator pitch’, it gives the entrepreneur a maximum of 20 seconds to get the prospects attention. Be
8. Be positive - Use positive language. Smile and see the good in people. Be known as a positive person. Be passionate and enthusiastic, but not emotional or subjective. Avoid personalizing situations and remain objective. 9. Apply sustained effort – Business networking is a form of marketing. Any type of marketing produces better results when applied consistently in a focused way. Be open to unplanned networking opportunities.
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Corporate holiday gift Corporate holiday gift shopping wasshopping recently wa bro authentic Jamaican gift, craft and sou authentic Jamaican gift, craft and souvenir items t between the Jamaica Promotions Cor between the Jamaica Promotions Corporation (JAM Hotel and Tourist(JHTA). Association Jamaica HotelJamaica and Tourist Association Her
Sammi’s Gourmet Treats Sammi’s Gourmet Treats – Samantha Fung – Samantha Fung
Jeffery Perry
Jeffery Perry
Alabaster Craft – Egbe Alabaster Stone Craft – EgbertStone Hamilton
Jeffery Perry is who a self-taught who has Stone built Craft Alabaster Stone Craft the mak Samantha Fung, a mother of one,Jeffery was a manager Perry is a self-taught artist has builtartistAlabaster the makers of intricate Samantha Fung, a mother of one, was a manager island wide reputation with his realistic live souvenirs and items from ston of a and smallgift appliance and giftisland storewide before reputation with his realistic live souvenirs and items from stone is a company of a small appliance store before charcoal portraits. At an early age his teachers owned and operated by Egbert becoming a stay at home mother to nurture her becoming a stay at home mother to nurture her charcoal portraits. At an early age his teachers owned and operated by Egbert Hamilton in the and classmates talent in art community Trench The Town, As awould hobbyoften Samantha make recognized and often classmates his rawrecognized talent in arthis raw community of Trench Town, ofKingston. family. As a hobbyfamily. Samantha make would and often asked him to do drawings of Christmas company was started in 1969 b sauces for her household. and often asked him to do drawings of Christmas company was started in 1969 by Mr. Hamilton escovitch pickle escovitch sauces forpickle her household. decorations and cartoon figures on the chalk during his tenure at a bamboo Gradually, as friends and family visited she began Gradually, as friends and family visited she began decorations and cartoon figures on the chalk during his tenure at a bamboo craft company. Hamilton, to receive orders for her homemade board. pickle board. According to Mr. According Hamilton, tooneMr.day when to receive paid orders for herpaid homemade pickle retrieving materials for his emplo sauce. retrieving materials for his employer he stumbled sauce. Though hishe initial careertopath,upon he reverted to alabaster upon the stone. beautiful Though not his initial careernot path, reverted the beautiful He alabaster attemptedston his talent after experiencing difficulties inthe to cut it made and inhis thefirst process From pickles to jams her hobby evolved, into a full his talent after experiencing difficulties in to cut it and in process item,mad a From pickles to jams her hobby evolved, into a full landing employment in the job market and hasthatcup and saucer that was bought b blown business. With help from the JBDC’s landing employment in the job market and has cup and saucer was bought by his employer’s blown business. With help from the JBDC’s since hisdifferent craft and explored Resource (IRC) she wasthen nowhoned able his since craftthen andhoned explored wife. different wife. Incubator ResourceIncubator Centre (IRC) she wasCentre now able media. He now produces a range of fine art to have the expertise and machinery to produce to have the expertise and machinery to produce media. He now produces a range of fine art pieces oncharcoal canvas, drawings, pastel, charcoal drawings, Gaining encouragement and package her products at international world pieces on canvas, pastel, Gaining encouragement and favourable an and package her products at international world landscape, sceneries, paintings water and oil feedback, Mr. standards. landscape, sceneries, paintings water and oil feedback, Mr. Hamilton sought toHamilton grow hissought craft t standards. based and live portrait drawings. Jeffrey is by employing young men from based and live portrait drawings. Jeffrey is by employing young men from his community inspired by the natural environment, daily living throughTown the Development Trench Town The less than two year old company has already inspired by the natural environment, daily living through the Trench The less than two year old company has already as and well reactions as recognition reactionswho he heAssociation who he and helped to m started in the jams and sauces situations as well assituations recognition he and Association helped to mentor train. started to make strides in to themake jamsstrides and sauces gets whenever he produces his work. During this time, he copped industry.Treats Sammi’s getsmanaged whenevertohe produces his work. During this time, he copped the United Nationsthe industry. Sammi’s Gourmet has Gourmet managedTreats to has Educational, Scientific and Cultu land shelf space at several locations including Educational, Scientific and Cultural Organization land shelf space at several locations including Perry’s artwork has been featured in various (UNESCO) Award for Excellence Loshusan (Barbican) supermarket, Norman Perry’s artwork has been featured in various (UNESCO) Award for Excellence in Handcraft for Loshusan (Barbican) supermarket, Norman entertainment andwell news articlesthe asEnglish well asand his Dutch theSpeaking English and Dutch Speaking Manley International Airport gift store. entertainment and news articles as as his Caribbean. Manley International Airport gift store. can be infound exhibited in various paintings can be paintings found exhibited various galleries onseen the hanged island and in From Mr. H Sammi’s Gourmet Treats consists of jams, sauces, galleries on the island and in seen Fromhanged the alabaster stonethe Mr.alabaster Hamiltonstone and his Sammi’s Gourmet Treats consists of jams, sauces, various business establishments islandwide. associates are able to make jellies and condiments utilizing the great variety various business establishments islandwide. associates are able to make a variety of shapesa v jellies and condiments utilizing the great variety Through his five year association with the and items ranging from statues o of exotic fresh Jamaican fruits and vegetables. of exotic fresh Jamaican fruits and vegetables. Through his five year association with the and items ranging from statues of animals such as Jamaica Business Development Corporation horses, and elephants, rabbits and h Samantha emphasizes the all natural ingredients Jamaica Business Development Corporation horses, elephants, rabbits household items Samantha emphasizes the all natural ingredients (JBDC) he has commissioned landed numerousthat commissioned that include candle holders coast in her jams and sauces that contain no artificial (JBDC) he has landed numerous include candle holders coasters, cup & saucer in her jams and sauces that contain no artificial works for various individuals and corporate and mortar & pestle. colourings. Currently Sammi’s boast 5 signature works for various individuals and corporate and mortar & pestle. colourings. Currently Sammi’s boast 5 signature flavours of jams: sorrel, guava, entities.and their entities. flavours of jams: sorrel, guava, tamarind and their tamarind Mr. able Hamilton has beenthe able to pe unique orange coconut. Mr. Hamilton has been to penetrate local unique orange coconut. Jeffrey now does live portraits at various resorts hotel market and has his Jeffrey now does live portraits at various resorts hotel market and has his products on the pr the as North CoastDsuch as Franklyn D Resort of most of th on the North Coastonsuch Franklyn Resort souvenir shelves ofsouvenir most ofshelves the island’s major (FDR), Sandals, Hedonism and Grand Lindo Sans his over hotels. Through his over two year (FDR), Sandals, Hedonism and Grand Lindo Sans hotels. Through two year association with Souci Resort to name a few. Currently, he is most the Things Jamaican Store, the Souci Resort to name a few. Currently, he is most the Things Jamaican Store, the marketing arm of m frequently the Sunset Beach and SpaBusiness in the Development Jamaica Business Developm frequently at the Sunset BeachatResort and Spa in Resort the Jamaica Association Montego Bay. (JBDC) Alabaster Craftatcan Montego Bay. (JBDC) Alabaster Stone Craft can alsoStone be found Norman Manley and Sangste the Norman Manleythe and Sangster’s International Airport. Airport.
ought to the when Linkages the Tourism Hub presented a gallery display of over 80 fore when thefore Tourism HubLinkages presented a gallery display of over 80 producers of producers of to a selected audience at the Jamaica Pegasus Hotel. Dubbed Christmas in July, it is a collaborative effort audience at the Jamaica Pegasus Hotel. Dubbed Christmas in July, it is a collaborative effort MPRO), Jamaica Manufacturers' Association Jamaica Business Development Corporation ca Manufacturers' Association (JMA), Jamaica(JMA), Business Development Corporation (JBDC), and (JBDC), and re six of the producers who part of the showcase: htwe sixhighlight of the producers who were part of were the showcase:
McMurrays Designs & Souvenirs Beyond BodyMcMurrays Creative Designs &Creative Souvenirs hany: Beyond Epiphany: Body Runningman Products Ltd – Burchell James Runningman Products Ltd – Burchell James Travelle McMurray Marsha-Lee Hutchinson Travelle McMurray sha-Lee Hutchinson
Marsha-Lee Hutchinson is a at final McMurrays year studentCreative at McMurrays Creative Design known Vassell as the &Richard Vassell & hinson is a final year student Design & Souvenirs started& Souvenirs Formerlystarted known Formerly as the Richard the University of the West Indies, Jamaica studying over 45 years ago and is now run by Travelle Assocates Collection, Runningman Products he West Indies, Jamaica studying over 45 years ago and is now run by Travelle Assocates Collection, Runningman Products physical whoskin out care of a personal skinafter care his McMurray afterhim his father handedLimited him thehas reinsbeen Limited has been in operation for the past who out oftherapy, a personal McMurray father handed the reins in operation for the past personalincare in 2011 some four years ago. ntoneed the ventured personal into care the industry. 2011industry. some four years ago. twenty-six years. twenty-six years. She started by producing her ownSince line ofthen, lotions Since then, toheexpand has sought roducing her own line of lotions he has sought the to expand the and body products and although the results business from a backyard in Gladesmanufactures The company manufactures roducts and wash although the results business from a backyard activity in Glades activity The company and prints a range ofand prints a range of were as expected she move onSt.toCatherine her District, St. Catherine to an actualclothing companyitems with mainly clothing itemsat mainly geared at the tourist cted shenot quickly move on toquickly her District, to an actual company with geared the tourist skill which was ability. her candle making ability. exportinternational market. Items manufactured wasnext her candle making international potential. export potential. market. Items manufactured include swimwear, include swimwear, t-shirts, shorts, dresses, school sports sportswear, t-shirts,sportswear, shorts, dresses, school sports Fromgrade as early as grade four Marsha-Lee McMurrays Designs and & conference Souvenirs bags and conference bags and a host of other items. as four Marsha-Lee McMurrays Creative Designs Creative & Souvenirs and a host of other items. entrepreneurial mindset.unique She wooden produces unique wooden craft of various kinds. n demonstrated entrepreneurialanmindset. She produces craft of various kinds. made little stuffed toys and sold them at her From trees such as the Spanish Blue Mahoe, Owned operated by career Accountant, ed toys and sold them at her From trees such as the Spanish Elm, Blue Mahoe, Elm, Owned and operated by and career Accountant, leisure. with Now that grownsame with Cedar, that Mango, same Wild Cedar, Mango, and Wildothers TamarindBurchell and others Burchell James, the company grown Tamarind James, the company has built a strong has built a strong sheher has moveddepending on to her new depending on the required,reputation they are able reputation withhotels craft as stores reentrepreneurial she has moved fire on to new on the finish required, theyfinish are able with craft stores and one and hotels as one business “Epiphany; Beyond Body” which is the to carve bowls (soup/salad), goblets, shot and company boasting cutting-edge and creative ny; Beyond Body” which is the to carve bowls (soup/salad), goblets, shot and company boasting cutting-edge and creative of her newtherapeutic unique aroma therapeutic wine glasses, trays and other items that are not designs. Although faced with numerous ewname unique aroma wine glasses, trays and other items that are not designs. Although faced with numerous candles. only aesthetically that are competition also imported competition James and staff have only aesthetically appealing but thatappealing are also butimported Mr. James and staffMr. have functional. committed themselves to providing the highest functional. committed themselves to providing the highest Epiphany: Body Beyond has uniquely designed quality products through Beyond has uniquely designed quality products through manufacturing andmanufacturing and candles like and food likeCreative in McMurrays Designs Souvenirs their has own printing their own materials, effectively, booth fruitthat likeare andbooth food fruit like in McMurrays Designs &Creative Souvenirs has & printing materials, effectively, appearance. Her line of candles encompasses been supplying the Things Jamaican Store maintaining the the quality standards the industry line of candles encompasses been supplying the Things Jamaican Store for maintainingfor the quality standards industry three categories, thewith Dessertover Smoothie withand over four his years and has seen and ories, themain Dessert Smoothie four years has seen distribution andhis distribution has grown to love. has grown to love. scents and Tea banana;sales the increased Coco Tea duesales increased to the nilla and coffee, banana;vanilla the Coco to the variousdue expos and various expos and candle that is packaged an enamel trade shows in which his productsRunningman are displayed. Runningman Products be found at all major atscented is packaged in an enamel mug in trade showsmug in which his products are displayed. Products can be found at all can major and the “Sundeh” created to mimic the With the assistance of the Jamaica Business hotels including Sandals and eh” created to mimic the With the assistance of the Jamaica Business hotels including Sandals and Breezes, gift shops, Breezes, gift shops, appearance of an actual ice-creamDevelopment sundae. Development Corporation (JBDC) he shops has and andiscraft andvia is also actual ice-cream sundae. Corporation (JBDC) he has and craft also shops available the available via the employed a winning strategy that Store Things Store at all locations. employed a winning marketing strategymarketing that Things Jamaican at allJamaican locations. Marsha-Lee alsotoextended making allows him to provide perfect gifting solutions also extended has herself making herself allowstohim to provide perfect gifting solutions customized variations of her candles for wedding for any occasion. tions of her candles for wedding for any occasion. souvenirs, candle sets, unity pillar candle candlessets, and pillar candles and arises.since In the two since his works can be found at the Things edothers arises. as In the the need two years Someyears of his works Some can beoffound at the Things formally starting her business she has been able to Jamaican Store, Craft Cottage, her business she has been able to Jamaican Store, Craft Cottage, Old Craft Market Old Craft Market expand product arange to include a unique in Ocho Rios,asthe Negril beach, as well as other duct rangeher to include unique in Ocho Rios, the Negril beach, well as other hotel and resort destination. nt.mosquito repellant. local and hotel and local resortand destination.
Epiphany: Body can be found at ny:Currently, Beyond Body can beBeyond found at Villas and can be experienced at the asthe andGoblin can beHill experienced at the Bay View Eco Resort’s spa. ort’s spa.
TECHNOLOGY How to Use Social Media for Business
It’s rare to meet someone today who is not on social media in some way. Many people think of social media platforms like Twitter, Facebook and Instagram as channels to communicate with friends and family. But social media has expanded to provide networking opportunities for all types of businesses. Below are tips on how to use social media for business and how social media marketing can help support your business goals and raise awareness about your brand and products or services.
Start with Social, but Plan Bigger Whether you have a website or not, there are several benefits when you use social media for business to help establish an online presence including: • Simplicity and speed: easy-to-use interfaces mean your presence can be up and running in minutes. • Cost-effectiveness: a social media page can be developed for little or no cost. • Built-in base of members: social networks are a place to reach and engage existing and potential customers. If your business already has a website, you can use your social media channels as marketing tools to amplify your company brand, message and content in order to drive visitors back to your main website. But if a website isn’t in your strategy or budget (despite the fact that you can actually create a great website today for free), your business can still benefit from registering a unique, descriptive domain name.
Two primary ways to use a domain in support of a social media presence are: 1. As a branded Web address that point to your social presence. 2. As a branded email address to reinforce your social presence while giving your business added credibility.
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Use Content to Attract Customers The best way to get your customers’ attention and drive user interaction is to deliver frequent, high-quality and compelling content on your website and social presence, or with a blog post that targets your audience. Here are a few tips: • Have a plan: know what you want your content to do for your business. Are you looking for leads or brand awareness? Your plan will help you see the path ahead, and more importantly, allow you to measure success or failure. • Define your audience: know who they are, what they know, and — more importantly — what they don’t. This can help you form your content. • Play to your passions: your content is bound to be more compelling and attractive if you have a deep and clear interest in the subject matter.
Try Paid Advertising to Get in Front of New Customers Paid advertising relies upon a variety of targeting mechanisms including keywords to put your ads into the paid advertising or “promoted ad” section on social networks where your customers and prospects spend time. Display ads may also appear on the sides of the users’ pages and as they are integrated seamlessly into the user’s experience, they don’t generally feel like typical obtrusive ads. Paid advertising can be an effective strategy and many social platforms have budget-friendly options. Placing ads on social media channels like Facebook, Twitter and LinkedIn, can work with any budget, and ad campaigns can easily be set up with just a credit card. You can also target your audience using age, gender, location and interests, among other demographics. Consider including images in your ad. Ads with images are more attention getting, leading to more clicks, shares, likes, and re-tweets. YouTube offers a variety of advertising options, in some cases charging fees only if users actually watch your videos. Source: http://smallbiztrends.com/2015/07/use-social-media-for-business.html
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TECHNOLOGY Four Technology Trends for Small Businesses By John Rampton, Entrepreneur, Online Marketing Guru & Startup Addict
As a small business owner, it’s not always top priority to keep up with the "next big thing." You have a business to build, finances to manage, employees to retain and customers to attract, meaning you don't have time to be in the loop about the latest gizmos and hottest technology trends. It may be easy for business owners to think this way, but that doesn't mean it's a smart business move. One of the most challenging disadvantages that small businesses have is that you don't have the funds and manpower that giant corporations often do. Not keeping up with the latest business tech trends can put you even further behind since these solutions are capable of organizing and analyzing operations so that you can focus on sales and growth.
Below are four tech trends that will contribute to that growth for small businesses. Customer Relationship Management (CRM) We all know, communication makes or breaks all relationships. For small businesses, the key to selling faster and better is to understand and communicate effectively with your consumers, which sounds simple, but is actually quite difficult when you factor in all of the other priorities you have. It's easy to miss out on relevant information, which leads to missed opportunities. This is exactly why it's so necessary for small businesses to implement a customer relationship management (CRM) software to keep track of the interactions and gain better access to customer data. Many CRM systems are affordable and helpful in the sense that all of the information you need for better customer relationships is all in one place.
Network Security Technology has changed the way we do business, but it's also made us more vulnerable to cybercrimes. Those at the front lines of this danger are small businesses; 60 percent of all cybercrimes are actually directed at small establishments. Considering the numerous incidents of data breaches occurred in recent years, small businesses should make cyber security a top priority. The last thing a business wants is to have their customer credit card information stolen or private messages made public by cyber crooks. In 2015, small businesses that have not made network security a priority should take the leap to protect both their company and customers. Don't wait for something unfortunate to happen before taking action since it takes much longer to win back trust after you've lost it.
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Business intelligence tools Want to get to the "aha" moment quicker everyday? Business Intelligence (BI) tools is your answer with its ability to offer real-time access to data and analysis that so often leads to quicker intelligence and a higher level of informed decision-making skills. While simple tools such as spreadsheets may have been enough to get your business rolling in the beginning, it fails in manipulating information that allows small businesses to see the "big picture." Implementing a proper BI tool can help small businesses analyze high volumes of data across multiple sources, and more easily identify how they're all connected.
Smart Inventory Management Poor inventory management is one of the major reasons small businesses fail. Failing to track inventory can lead to products sitting around for years. With a limited budget, small businesses need to think about their inventory like cash. If there were piles of cash stocked in your warehouse, wouldn't you find some kind of system to track it? Poor inventory management leads to bad customer service and companies end up with large write offs on their financial statements. A few smart inventory management tools that would save small businesses a lot of money -- and headache -- are the Wasp Inventory Control, most ideal for small businesses from 5-to-99 employees, Fishbowl Inventory, most suitable for small businesses with 100-999 workers, and AdvancedPro Inventory Management Software for users who prefer QuickBooks. Source: http://www.huffingtonpost.com/john-rampton/4-technology-trends-for-small-business_b_7 519382.html
Ministry of Industry, Investment & Commerce
“Shaping the Entrepreneurial Mindset”
SCHEDULE
NOVEMBER 16-21, 2015 Monday, November 16 GEW Official Opening & Launch of the Week’s Activities JBDC Camp Road 9:30 am
Tuesday, November 17
Biz Connect
JBDC Business Centre MONTEGO BAY & OCHO RIOS 9:00 am - 5:00 pm
Business Dialogue
Mona School of Business & Management, UWI – 5:00 pm
Wednesday, November 18
IRC Open House and Exhibition
JBDC Incubator & Resource Centre - KINGSTON
9:00 am - 5:00 pm
Biz Connect
JBDC Business Centre -SAVANNA-LA-MAR 9:00 am - 5:00 pm
Thursday, November 19
Biz Connect
JBDC Business Centre - MANDEVILLE/ HANOVER 9:00 am - 5:00 pm
Business networking event TERRA NOVA HOTEL 5:30 pm - 8:00pm
Friday, November 20
JBDC/ScotiabankLaunch of the JBDC Entrepreneur Development Programme TERRA NOVA HOTEL 10:00 am
Saturday, November 21
Scotiabank/Branson Seminar For further information about sponsorship, exhibition and registration: Contact: expo@jbdc.net • 930-8531 • 928-5161-5 Ext. 277 www.jbdc.net FIND US ON
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FINANCE
Understanding Your Tax Obligations So you have started a business or have been operating one for some time but
due on the last business day of the month following the period in which trading
need to understand what your tax obligations are. It is best to get it right from the
took place.
start, but it is never too late.
A Minimum Business Tax (MBT) was introduced in 2014. It should be noted that the
Tax System
MBT is not a tax on income. Consequently it does not replace the filing and
Jamaica, like many other countries, has a self-assessment tax system which gives
payment of quarterly Estimated Income Tax (IT07/SO4a) or annual Income Tax
taxpayers greater control and responsibility over their tax affairs. Taxpayers
return. It is levied on all businesses, whether operating as a company or individual
calculate, file and pay their taxes at specific times as set out in tax policies and
or whether the business is making a loss or is dormant. In the case of individuals, the
laws. Where the individual or company fails to file a return, the Commissioner
MBT law has been amended to exclude persons with a gross annual revenue equal
General is empowered to take compliance action.
to or less than $5M.
Tax Types
The annual payment of $60,000 is due in two parts: on June 15, $30,000; and on
There are several tax types that a business person needs to know about,
Sept. 15, $30, 000. The MBT can be credited against income tax payable (other
depending on the nature of their business. However we will focus on Income Tax,
than income tax liability arising from employment).
Payroll taxes and contributions (if you have employees), General Consumption Tax
Importance of Due Dates
(GCT), and most recently the Minimum Business Tax, also known as MBT.
It is very important that you know the due dates for filing and paying your taxes.
Income Tax, as the name suggests, is a tax on all sources of income, such as
Remember being late has consequences where you can be penalised and or
earnings from operating a business or employment, rental or investments. This is
summoned to appear before the court. Don’t let that happen to you.
payable by residents on their worldwide income. While Non-residents are taxable
On the flip side, filing and paying on time can literally benefit you. Employers who
on income earned in or in relation to Jamaica, if they are here for more than three
file and pay monthly returns (S01) on time can benefit from an Employment Tax
months. Quarterly payments are due March 15, June 15, September 15 and
Credit. This means that an employer can claim payments made on time for
December 15, while annual income tax returns and payments are due on March
Education Tax, NHT, NIS and HEART, both the employer and employee portions,
15. The requirement for annual returns and payments and for quarterly payments
against annual income tax payment. So you see it pays to be compliant.
do not normally apply to income from employment.
Compliance Self-Check
Please note that there is no age limit to the payment of Income Tax; however
Now that you better understand your tax obligations you need to ask yourself
persons over the age of 65 years get an exemption of $80,000, while pensioners are
certain questions to check if you are compliant:
allowed an exemption of $80,000. There are also certain exceptions to Income Tax,
•
Am I duly registered where this is required?
such as exemptions by law where income is not taxable, e.g. charities or
•
Have I filed all relevant returns with TAJ?
circumstances where persons can get tax relief for a specific period.
•
Have I filed on or before the due dates?
As an employer, a business is obligated to deduct and pay over payroll taxes and
•
Are my returns accurate?
statutory contributions, on a monthly basis for Income Tax, Education Tax, National
•
Have I paid all liabilities?
Housing Trust (NHT) and National Insurance Scheme (NIS) contributions and HEART,
•
Were payments made on or before due dates?
under the pay-as-you-earn (PAYE) system. This is due on the 14th of the month following the deduction, now using the single S01 form.
NO to any means you are NOT 100% compliant and should check with your
In the case of GCT, every person who carries on a taxable activity is required to be
professional or with TAJ.
registered for GCT. This refers to a business entity which sells taxable items and
For More Information
whose gross income is equal to or more than $3M per annum. Registered Taxpayers
Contact the TAJ Customer Care Centre at 1-888-TAX-HELP (829-4357), email
are required to submit a monthly return accounting for GCT collected from sales
taxhelp@taj.gov.jm or visit the website www.jamaicatax.gov.jm. You may also like
and GCT spent on acquiring goods and services. Since October 2014 the return is
or follow TAJ on Facebook or Twitter at jamaicatax.
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FINANCE
Many local businesses are likely to know how hard it is to gain or maintain cash flow to fund the development of the business or meet those income deficiencies. There may come a time when customary small business financing, for example, loans and credit, will be constrained or not in reach to keep production going. In business, "cash is king" and this is why the EXIM Bank continuously seeks to develop creative and innovative products and services to address the needs of the SME sector to promote sustainable businesses that can contribute to Jamaica’s economic growth and prosperity. This has heralded the "roll out" of the new Receivables Financing Loan as the Bank perpetuates its thrust to boost the productive capacities of non-traditional sectors such as Tourism, Manufacturing, Agro-processing, Mining, the Tourism Industry, Information Communications Technology and the Creative Industries. This Receivables Financing Loan allows customers to access up to J$60 million or US$ equivalent per transaction at affordable interest rates and may be utilized to secure raw material or goods while the business awaits payments. It also facilitates the on-going access to funds as soon as each loan is repaid and offers flexible collateral requirements for borrowers. Promoting sustainable growth and development for Jamaica’s productive sector is at the heart of what the EXIM Bank does and the increasing difficulties that local entrepreneurs continue to face in trying to keep their businesses afloat, calls for targeted solutions that are tailored to offset these challenges. The issue of limited cash flow continues to affect local businesses and this problem is compounded with the customary delays in getting their
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receivables paid in a reasonable time by customers. EXIM Bank’s Receivables Financing Loan, which is now available to local SMEs, is a significant step in enabling these companies to bridge this gap and stay competitive. EXIM Bank’s Receivables Financing Loan is available to business entities registered in Jamaica. Loans are offered on a short or medium term basis, with short-term loans being offered for a maximum period of 120 days. It may be used to finance the following: working capital, pre and post shipment transactions, equipment acquisition and refurbishing or upgrading of facilities. Each transaction attracts a small processing fee which is payable upon approval of the facility. The introduction of this loan financing facility, which addresses the practical and day- to- day needs of SMEs, is expected to pave the way for accelerated growth in this very important sector of the economy.
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FINANCE
5 Ways of Funding a Business
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One of the biggest challenges for entrepreneurs and small business owners is
These angel groups can be found in most communities – and on the Internet,
finding the funds necessary to launch – and eventually grow – their
with a description of their purpose and objectives. After doing their due
businesses. If you’re reading this, you’re likely looking right now.
diligence, these groups will determine if your business meets their requirements, and if so, will schedule a meeting to gather more data.
Consider the following tips as a guide while looking to fund your business in
Investments can range from $50,000 to $500,000 or more. At this stage of the
the following five ways:
business, angels become very real and serious investors and owners with high
1. Bootstrapping
expectations looking for solid results.
In the idea/experimental stage, use your own financial resources, such as
5. Bank Loan/Venture Capital
money from a savings account or careful use of personal credit cards. Wise
In the later stages of a growing business, the now-incorporated business might
deployment of these precious dollars is critical.
need a bank loan for various needs, including operating capital and
2. Friends and Family
long-term growth. To secure this loan, financial institutions will require several years of financial information on both the business and the entrepreneur.
If you don’t have your own savings or credit cards – or you do, but your
They will want collateral to secure and guarantee a loan. To facilitate the
growing business needs additional funding – all is not lost. Consider inviting
process, engage with the financial institution at the earliest stages of the
family and friends to invest in the company with the understanding that their
enterprise–not necessarily for a loan at first, of course, but for a merchant
money may not be returned. In most cases, these friends and family are
account, credit cards and a checking account. Over time, the bank will
investing in you, not your business. Both parties should think of this investment
become familiar with the company and the entrepreneur will be in a better
as a grant with no strings attached. If the enterprise succeeds, a reward to
position to seek additional banking products – including loans – when
these risk-takers would be a nice gesture.
needed.
3. Crowdfunding
For some very fast growing companies, the organization reaches a point in its
Let’s take the “friends and family” investment discussion up a notch
life cycle when venture capital funds are required for hyper growth. In this
or two. If you haven’t heard about crowdfunding, you must not be
case, the company may need tens of millions of dollars to enter new markets,
serious about funding your business. Crowdfunding allows for a
expand sales or add new products. Once again, these investors, who have
wider pool of small investors with fewer restrictions and is ideal in
money to deploy, conduct their due diligence to ascertain the viability of the
the early stages of a business, especially if you don’t q u a l i f y
enterprise. Their ultimate goal will be to sell your business to garner a financial
for a bank loan, aren’t ready for angel or venture capital
return for its limited investment partners and the entrepreneur.
funding (as outlined later in this article), or don’t have the friends or family willing – or able – to provide the “no-strings-attached grant.”
4. Angel Investors As your business reaches the next level of growth and you see steady revenue on the horizon, begin to approach sophisticated “angel” investors if you need more funding. This affluent individual – or a group of individuals who pool their research and resources – provides capital for a business start-up usually in exchange for convertible debt or ownership equity.
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If you keep these five means of funding in mind and develop a business plan that demonstrates the value of investing in your company, you’ll significantly increase the odds of securing the capital you need, whatever stage of business you are in. Source: http://www.forbes.com/sites/alanhall/2012/10/20/5-means-of-funding-a-small-b usiness-how-to-get-your-piece-of-the-pie/2/