Black Swan Management, LLC

Investments and Strategies for the Future of Business

Posts Tagged investment

Reasons Why You Should Hire A Franchise Lawyer

Oct 25

Posted by Tom Brinic in business, investing | No Comments

A contract is binding. When one signs on a contract, it cannot be broken. The terms and agreements apply.

A franchise agreement is a binding contract. It defines the obligations and rights between the franchisee and the franchisor. A franchise lawyer comes in between. He reviews the contract as well as the agreement both parties signed on.

Franchise lawyers are credible to handle unique franchise agreements. For example, duplication of the concept of a business can provide consistent services. The consistency allows franchisors to establish a brand identified to them. They can also have franchised locations that are associated through networking lead to the total reinforcing of the brand to their image.

The franchisor must be protective of its brand. It also has the power to dictate issues that is indicated in a franchise agreement. Franchise attorneys must know the legality of the conditions as presented by both parties – the franchisor and the franchisee.

The franchise lawyer’s task is to provide the consistency between the franchisor and franchisee in order to protect the brand. He also dictates the issues that are covered in the contract both parties signed.

If the franchise lawyer does not have the experience to comprehend these franchise matters, there is a tendency for the stipulations to be misinterpreted and his decisions are biased and favor the franchisor.

Therefore, you, the businessman, must have a financial lawyer you trust beside you when making investment decisions. A franchise lawyer specializes on those matters and would gladly review the franchise agreement before you sign.

A credible and well-reputed franchise lawyer separates the contract terms as well as the acceptable obligations set amidst the common practices in a relationship between the franchisor and the franchisee. He weighs out what is unusual or extreme.

Franchise lawyers can help businessmen negotiate with the franchisor. At least by having them on your side, you would get an explanation on the changes the franchisor would like to make and those that have the possibility to be rejected. He may also help you evaluate the opportunity after buying the franchise, as well as coming up with your future business plan.

However, hiring a well-reputed franchise lawyer is not an easy task. Ask anyone who often invests in franchise, inquire for of they know someone they can refer. Try to also ask your own attorneys or accountants whether they know a lawyer who specializes in franchising.

Also, franchise lawyers must be fully informed of all the regulations upon purchasing the franchise. FTC Franchise Regulations require the disclosure of all information such as advertising, licensing, contracting, sales and other promotions of the franchise.

Disclosures that often create an argument between franchisor and the franchisee are:

- the name of the franchisor

- any fictitious name of the franchisor

- franchisor’s trademark

- the last five years business experience of the officers and directors

- whether the franchisor, officer, or director have been involved in any actions of fraud during the last seven years

- terms of the franchise agreement including details on how to modify, terminate or sell it

As a businessman, you can expand your own business instead of selling what you already sold to others. Be the franchisee and not the franchisor. If your company owns and runs a successful franchise, expect lotsa cash rolling in.

Thanks to a franchise lawyer, each move you make regarding the expansion of your business will be legal and guaranteed.

Before making a responsible decision involving franchising your business or investing in a computer repair franchise, you should get all the information you can regarding the matter. Our website, Franchising My Business offers news, tips and advice to help you through this decision making process.

http://franchisingmybusiness.com

Author: Tom Brinic
Article Source: EzineArticles.com
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Internet Forums – Six Ways To Avoid Disaster

Oct 18

Posted by Elaine Currie in internet business | No Comments

Internet Forums are highly popular, they cater for all tastes and deal with every topic imaginable. People visit Internet forums for a variety of reasons, the most common being the search for information or entertainment. The Internet forum is a safe environment if you behave sensibly but you can find yourself in dangerous territory if you ignore the following warnings.

Don’t Join Internet Forum Flame Wars

An Internet Forum flame war is to be avoided at all costs. The airing of differing points of view, debate and discussion are healthy things for an Internet forum: they keep it lively. An Internet forum flame war can make entertaining reading but don’t be tempted to join in or start one. If you make a habit of leaping into forum flame wars, you will acquire a reputation as a trouble-maker and you could find yourself barred from a forum because of your behaviour. Another good reason for avoiding forum flame wars is that you could find yourself caught in the crossfire. Before you know it, people will be firing at you from every direction when all you intended to do was have a bit of fun.

Don’t Make Jokes On An Internet Forum

Well, you can if you really must, but remember that the Internet forum has the same drawback as email: the reader can’t see your expression or gestures. The smile, shrug or grimace which can lift your comment from serious to humorous will be missing and your message will be something which the reader has to interpret. If the reader gets it wrong, you might very well find that you just started your very own Internet forum flame war quite unintentionally. You can safely tell a joke on a forum (provided that your joke’s content is appropriate) but sarcasm and irony are dangerous and best avoided.

Don’t Be An Internet Forum Drama Queen

The Internet forum is not a suitable stage for you to perform your very own drama. If you flounce about making extravagant statements merely for effect, you will be the object of ridicule by other forum members even if nobody tells you so. If you are a member of a support forum for a particular programme, it is quite in order to post a message to the forum saying something along the lines of “I’ve started to feel unsure about [whatever], I don’t think it’s going to work out unless I make some changes. Can anybody suggest what I should try next?” Compare this to the next post in drama queen style: “I quit! This Sucks. I’ve done everything right so it must be this ****ing programme. You will never hear from me again!” Which forum member would you want to help? There will be kind people who feel the drama queen’s pain and offer support and suggestions. When the drama queen makes a big re-entrance to the forum after a few days sulking, posts “I’m back!” and expresses a resolve to work diligently towards success, the kind people who offered support will feel that their advice must have done the trick. When the forum drama queen posts another “Goodbye Forever!” message, the same kind people will empathise as the drama queen is obviously being affected by an emotional roller coaster and they will offer further sound advice. The kind forum members will be pleased when the drama queen makes a further “I’m Back And Here To Stay!” recovery. By about the third or fourth “I Quit!” drama, even the kindest people will be wishing the drama queen had stayed quit the first time round and Internet forum credibility for the drama queen ends there.

Don’t Be An Internet Forum Puppy

A real puppy can’t help chasing after everything that moves, getting under people’s feet and being hyperactive to the point where it sometimes becomes annoying: that’s just its nature. The Internet forum member who behaves like a puppy can help it and should desist. I am talking about the person who joins an Internet forum for the sole purpose of getting the links in his signature file on the forum as often as possible. The annoying forum puppy will respond to every message posted whether he knows anything about the subject or not. He will post messages which are of no value to anyone, these messages will range from boring pointless observations to obscure drivel to requests to poll an unimportant question which bears no relevance to the forum. If you are desperate to plaster your signature file all over the place, join lots of Internet forums and just post a few messages on each. With any luck, you will grow out of this time-wasting pursuit before the other forum members form a lynching party.

Don’t Be An Internet Forum Seconder

Have you ever come across Mr Me Too? If you have, you will know who I mean. He is about as annoying as the Internet forum puppy. Mr Me Too will post a response to every thread that appears on a forum. It won’t take him long as he won’t bother to read through the thread, all he will do is add a comment saying “me too” or “I agree”. This gets his signature file posted with the link back to his website and that’s all he wants. Mr Me Too does not go to the Internet forum for entertainment or information or to contribute anything useful. If you are subscribed to a forum thread and receive notification that someone has posted a further message on the topic, it is very irritating to log in at the forum only to find that someone has posted a message saying “me too” or “I agree” just to give his signature file an airing. It is sadly true that the Internet forum puppy and Mr Me Too will get their links on the Internet alongside the forum members who post meaningful messages. When the day arrives that Search Engine Robots are able to distinguish the difference between valuable forum messages and drivel, those two offenders will find that it’s pay back time for their transgressions.

Don’t Attack The Internet Forum Moderators

If you have a message removed or edited by an Internet forum moderator, there will be a reason, so don’t post complaints on the forum. Even if you don’t understand or don’t agree with the decision, there is no point in arguing. Attacking a moderator is like holding up a placard saying “I’m a pest, throw me out”. The moderators are there to ensure the Internet forum is kept to the required standard. Remember that somebody owns this forum and invests time and energy in keeping the environment — well — moderate. The Internet forum is not your private sand-pit, you are a guest and if your behaviour is not appropriate, your invitation to play could be withdrawn. You should also remember that anything you post on an Internet forum will be available for public scrutiny for years to come.

The dictionary definition of the verb to moderate is: “to keep within measure or bounds; to regulate; to reduce in intensity; to make temperate or reasonable”. If this does not sound like your kind of environment, perhaps you should stay away from Internet forums.

Copyright 2005 Elaine Currie

Author: Elaine Currie
Article Source: EzineArticles.com
Provided by: Electric Pressure Cooker

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Investors in Your Business – Are They the Best Solution For Your Funding Problems?

Sep 20

Posted by Lee Lister in business startup, venture capital/funding | No Comments

When looking for investors in a new business – I usually suggest that you go first seek out any grants or government assistance that your state, county or country offer – as this money is often subsidized and easier to obtain for a new business.

Your next stop would be the bank. They will be seeking to lend you money that is secured on some kind of collateral. A business loan is more usually for 2 – 5 years. A bank will not generally want to get involved with your business – just some confirmation that they will get their money back with interest.

The next port of call is an investor. Now these people are totally different to banks – in that that are actually investing in you and your business and they often want to get involved with your business as well. So let’s analyze this a little more.

What are investors looking for?
* In your business: They want a sound business or business idea with some kind of unique concept that they believe will rapidly move to profitability. They want a well thought out and credible business plan with realistic financials.
* In you: They want a hard working entrepreneur with good experience in the business area. They will look at your personality, your abilities and your past resume to see if your are the kind of person that can make a success of this type of business. Similarly they will want to feel that they can work with you – because they will be.
* From the loan: Investors will only want to invest in your business for a few years, often a low as one year. They expect to be able to obtain a good rate of return on what they see as a risky investment. They will also often require a share of your business as their security. If you are seeking a large loan – they will often request a seat on the board of your company so that they can exercise some kind of control on the business activities.

What they will bring to your company:
* Experience and Guidance: Investors often invest in areas that they know a lot about. They are obviously keen for your business to be a success as their return on their investment is dependant upon this factor. This means that they will often offer guidance and help to you as part of the package.
* Cash Injection and Cash Flow: Some times you can request a staged investment from an investor, subject to you reaching agreed deadlines. This not only concentrates the mind in your business development, but also ensures that money is available when you need it. Suffice it to say that cash is always welcome in a business.

Your business plan is very important. You need to prove that you meet all the requirements above, but you also have to include what is called an Exit Strategy. This basically answers and lays out in detail, the four questions that every investor will ask:
* What’s in it for me?
* How soon do I get my money back?
* How risky is it?
* How much will I make from this investment?

One last suggestion for you – if you do not have the experience of every part of your new business, I would consider bringing such a person onto your team. Good luck with your new business.

Author: Lee Lister
Article Source: EzineArticles.com
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Real Estate Commission – A Corrupting Influence

Aug 18

Posted by Peter Mericka in real estate | No Comments

Real estate commission is the way in which real estate agents are paid for the services they provide. They receive a percentage of the price received for the property. Effectively, the real estate agent requires the seller of a property (the vendor) to sign over to the real estate agent a part of the property being sold.

Another way of looking at it is to say that the real estate agent, through the wording of the listing contract, effectively has his name added to the title deed of the vendors property, so that the real estate agent becomes a part-owner of the property. When the property sells, the real estate agent receives a payment that represents his share in the vendors property.

Most readers will be aware of the arguments in favour of real estate sale commissions, so I wont discuss those here. My focus is on the ways in which the sale process can be skewed against all parties involved, when the motivation to win a commission takes precedence over more important considerations.

Commission is a winner-takes-all, loser gets nothing situation. This increases the pressure on the real estate agent to secure a sale. Time is also a problem. If the real estate agent cannot secure a sale within a time acceptable to the vendor, the vendor may take the property off the market, or away from the real estate agents agency. This will result in a total loss for the real estate agent.

Finally, the vendor becomes an obstacle between the real estate agent and his commission goal. In order to receive payment for his share of the vendors property, the real estate agent must receive an offer to purchase within the available time, but the offer must be accepted by the vendor. If the vendor decides that the offer is not acceptable, then the real estate agent loses.

In order to win the gambling game that is real estate sales, the real estate agent may decide to tip the odds in his favour and there are numerous ways in which this can be done.

At the listing stage the real estate agent may use improper means to win the listing contract. These include over-quoting on valuation, and offering dodgy sales figures.

During the sale process the real estate agent may be tempted to tell potential purchasers things that are untrue. I have seen many sale contracts with clauses designed to protect real estate agents against the consequences of false statements. Known as porkies clauses, they invariably state that the purchaser acknowledges that any information provided to the purchaser by the real estate agent is provided on the understanding that the purchaser will not be relying on it for any purpose.

When a purchaser has submitted an offer, and the purchaser cannot be convinced to increase her offer, the real estate agent may be tempted to pressure the vendor into accepting what would otherwise be unacceptable. Observations, such as the market has softened or the market has spoken to us are used by real estate agents to convince vendors that the real estate agents high estimation of value can no longer be relied upon, and that the vendor should now accept what the vendor believes is an unacceptably low offer.

For some years now, I have been arguing that real estate services should be provided on a fee-for-service basis.

I will explore the replacement of real estate sale commissions with a fee-for-service structure further in future articles.

Author: Peter Mericka
Article Source: EzineArticles.com
Provided by: Programmable Pressure Cooker

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How to Maximize Your 401k Mutual Fund Returns

Jul 27

Posted by Ulli G. Niemann in stocks | No Comments

When it comes to 401k’s there is an overabundance of sad stories. Here is one that at least has a happy endingand it’s getting happier all the time.

Last year (in 2002) a friend of minelets call him Jackphoned and asked if I could help him with his 401k. Jack works for a large company as Senior VP of lending and is financially pretty astute. However, when it came to his 401k mutual fund decisions, he had repeatedly made the same mistake most people were making. As a result, he saw his account drop in value substantially.

At the time we were in the midst of the 2000 bear market, which showed no sign of letting up. Jack had purchased into a Lifestyle fund because someone recommended it. By the time he finally bailed out, it cost him dearly. However, he continued to make the same mistake by reinvesting.

He checked with the 401k representative and subsequently switched to a variety of mutual funds ranging from World Stock to Domestic Hybrids, Large and Small Value as well as Growth. But nothing worked and his portfolio value headed further south.

By the time we met to discuss his 401k Jack was pretty disgusted by the canned advice he had received and the continued losses he was sustaining.

Jack knew that I had pretty much eluded the bear market of 2000 by having sold all of my clients positions on 10/13/2000. We were safely in our money market accounts weathering out the storm (see my article How we eluded the bear in 2000 at http://www.successful-investment.com/articles12.htm.

Thinking about this, Jack could only shake his head because at no point in the market slide had he ever been given what I believe was the right advice. That is, no one suggested that, since we were in a bear market, he might want to step aside and remain in the safety of his money market account. So he stayed invested, hoping against the evidence all around him to find something that was not crashing. That was his mistake, and one shared by many.

The advice that he consistently and continually received was that the market was close to a bottom, stocks have to move up from these levels, and, my personal money losing favorite, the market cant go any lower. That’s what people wanted to hear and believe. But my tracking system said otherwise, and I followed its indicatorsmuch to the delight of my clients.

Jack wanted to know how I could help. Looking at his mutual fund choices I realized that they were actually pretty decent, and he had a variety of some 13 funds. So, what was the problem and how could we solve it? In a way, the answer was simple. But people were having to get pretty beat up before they would see it.

My first step was, with Jack’s permission, to log on to his 401k web site. Then I started making some adjustments. Since my trend tracking model was still in a Sell mode, I liquidated all of his positions and moved the proceeds into money market. This accomplished one thing right away: He stopped losing money. When you stop moving backward, in relation to everyone else you are moving forward!

Second, as my trend index moved into a Buy mode on April 29, 2003, I researched his funds again. Based on strong momentum figures, I invested in two of his mutual fund choices. The result was very gratifying: the funds I chose moved up around 10% in the two months after my Buy. (Other funds I had tracked and selected for other types of investment programs moved up as much as 26% in that period.)

Jacks been happy ever since. While the 10% appreciation is not as great as I was able to do with assets outside his 401k, it still confirms that the key to successful investing is methodology and discipline. Our disciplined approach relies on objective information. It disregards Wall Street hype designed to perpetuate commission-rich buy now while it’s low, or buy and hold strategies.

If you have been in a situation similar to Jack’s, or you want to avoid being in one, find an investment advisor who bases his decisions on a measured and objective approach. That will give you the edge no matter whether the market is going up or down and will give you the greatest protection from sad stories with your 401k.

by Ulli G. Niemann

Author: Ulli G. Niemann
Article Source: EzineArticles.com
Provided by: Electric Pressure Cooker

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How to Market Like Warren Buffett Through the Eyes of An Investor.

Jun 30

Posted by Paul Speziale in warren buffett | No Comments

Lets take a break for a minute from the flashy TV ads and the phone calls at dinner time asking us to change long distance plans.

Lets put away and forget everything we know about marketing just for a second, just long enough to see it from another angle, because in a minute I want to show you how to look at marketing and investing that will change your life forever.

To start, how do we define the two terms: marketing and investing? Well, investing is defined as to commit something (usually money) in order to obtain a financial return. But the word is based from the word investire in Latin, which means to clothe, or to cover, gain control of something.

So investing is all about gaining control over something in order to obtain a return correct?

Okay, now lets examine what marketing means. Marketing is defined as the total of activities involved in the transfer of goods from the producer or seller to the consumer or buyer, including advertising, shipping, storing, and selling.

But why on earth would someone want to transfer their goods to a consumer?

To make money, to make a profit and to grow larger as a business thats why. At least, thats how it is in a capitalistic society, which I am presupposing.

So, can you see how the two concepts are linked? Can you see how the very act of marketing is also investing?

Now, lets take a page out of the book of the most famous and ridiculously rich investor, Warren Buffett. You know him; he is the king of marketing. He above everyone else, understands how investing and marketing are linked.

Whats important about his style of investing is that he doesnt hold the charts, graphs, market capitalization, and the other technical business statistics with the same importance as does Wall Street.

In fact, he snubs Wall Street by looking at the fundamentals of the marketing aspects of a business. Lets examine them; there are only 3 real big ones:

1) He understands that you shouldnt fight the market. If people all of a sudden wanted Pogo Sticks instead of Coca-Cola, then he would look at that company. He looks for winners and products that market must have.

2) He understands that in order to protect a future investment, the product must have a high profit margin in other words, it cannot have a lot (or any) competition. He calls this a consumer monopoly. A product that can ride through the ups and downs of a roller coaster economy and still retain healthy margins.

3) He understands consumables. He wants to know that a consumer of that product will be buying that product again and again. That is the secret, he understands, to protecting his investment. A product that is a one time sale, will force the company to spend all their efforts on pursuing new customers. An effort, that is not only extremely costly, but takes away from their ability to innovate.

He picks the companies with those 3 attributes and waits for the price to go low so he can get a great return on investment.

So what can we learn about Warren Buffets marketing approach to investing? A lot.

If you are in business: Look at your own business and see if you can apply his 3 basic fundamentals to your business. Come up with creative ways to increase your profit margin and test them out, before you commit.

If you are an investor: Look at the companies you want to buy or already have bought. Will they provide you the return you want? Does their business model contain any of those three fundamentals? If not, perhaps they might be worth re-examining.

While Warren is unusual in that he made so much money, his principles are sound.

If you are looking out for the long term then investing and marketing become clearly linked together. Because with both of them, you expect an outcome that takes you further ahead compared to where you were yesterday.

Author: Paul Speziale
Article Source: EzineArticles.com
Provided by: Electric Pressure Cooker

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