Equity Financing Versus Debt Financing

Many small businesses encounter situations where they need money and have to find a way to get it. Lending standards can be somewhat tight in many places and this makes it difficult for some business owners to secure financing. There are going to be two basic avenues for business owners to travel when looking for financing. Equity financing and debt financing are the most common options, but which is better for your business?

Understanding Debt Financing

Debt financing is a term that refers to taking on debt to finance some type of purchase. Using a credit card to pay for an item or taking out a mortgage to buy real estate are both considered to be debt financing. This is going to be one of the most typical ways that a business will try to finance a purchase. A business owner might try to go to a bank to get a business loan that will make it possible to purchase something important for the company. 

For most business owners, debt financing is going to be very advantageous. Your lender won’t gain any control of your business or assets and you can pay them off over time. The only danger with this method is that there is the possibility that your ability to pay back the debt could be diminished due to financial hardships. You’re betting on your ability to pay your business loan or credit card balance off over time when you make this financing choice. 

Understanding Equity Financing

Equity financing is different because it involves investors pouring money into your business. You can offer shares of your business to investors so that you can get the money that you need. The one big advantage to this type of financing is that the investor is taking on all of the risks. Of course, the downside is that you will be losing a certain amount of control over your company due to giving away shares to these investors. 

Which Option Is Best?

Most small businesses will choose debt financing instead of going for equity financing. Equity financing is useful if you are worried about taking on debt or if you’re having trouble securing necessary business loans. Both of these financing options have a place in the business world and they can both work out very nicely. It’s just important to weigh your options and consider whether you want to give away shares of your business or if you’re better off dealing with a bit of debt. 

from Dearbhla Kinsella | Finance http://dearbhlakinsella.org/equity-financing-versus-debt-financing/
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The Impact of Sustainable Business

Climate change is a gigantic problem that is looming very large in people’s minds. Everyone is becoming increasingly worried about what climate change is going to mean for the planet, and people are finally starting to seriously think about how to solve the issues humanity is facing. Sustainable business practices are going to play a huge role in saving the planet, and it’s important for companies to recognize what needs to be done. Take a look at the potential impact of sustainable business practices by reading the information below. 

Changing Business Practices

Changing business practices is a necessary part of combating climate change. If things remain the way that they are currently, the world will continue to hurtle toward the worst-case scenario when it comes to climate disaster. Companies need to work hard to reduce their use of fossil fuels while also coming up with sustainable business practices. This is going to take ingenuity, dedication, and hard work. 

The first step to take is to examine your business practices and determine what can be changed to push your business toward becoming more sustainable. There are simple things that businesses can do such as eliminating plastic products, being mindful of energy consumption, and committing to recycling initiatives. Look for other ways that your business can become sustainable and try to commit to making the necessary changes. Some changes might be difficult, but it’s necessary for everyone to work together to solve this massive global problem. 

Inform Your Employees

Inform your employees about your commitment to combating climate change. It might actually be helpful to have large group discussions about sustainability so you can come up with new ideas. Your employees will play a big role in ensuring that your business succeeds with this initiative. Give your employees the resources they need to learn about sustainability and be ready to answer any questions they might have about the process. 

Set Yourself Up for the Future

Sustainable business practices have the potential to help the world avoid the worst possible scenario when it comes to climate change. It might take time for all of the businesses of the world to adapt to these new expectations, but this about the future of the planet, and every company needs a healthy planet to be able to keep moving forward. Set yourself up for the future and take action now. 

from Dearbhla Kinsella | Business http://dearbhlakinsella.com/the-impact-of-sustainable-business/
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The Evolution of Customer Service

Customer service has always been an important part of business success. Things are starting to change rapidly due to technological advancements, however. Changes in technology along with new expectations from customers are making the concept of customer service a bit different than it has been. Learn about the evolution of customer service and where things are going by reading on. 

The Customer Is King

The customer is always king, and you need to make sure that your customers are treated well if you want to continue to earn their business. In the past, customer service has always been about treating customers with respect while ensuring that any problems they have been dealt with satisfactorily. Businesses have gone from offering customer service in-person to having customer service call centers. Online customer service has changed things substantially and things have only continued to evolve from there. 

Customers Want Instant Customer Service

Customers in the modern era want instant customer service, and this is now a possibility due to changes in technology. It’s possible for customers to go online to get customer service help instantly instead of having to wait to speak with an agent. Companies are making use of chatbots to provide customers with solutions to common issues, and these bots are becoming more intuitive all the time. Some customers go to traditional websites to get help and others make use of dedicated apps. 

It’s easy to see that the customer service culture has changed substantially over the last several decades. The world is a busy place and customers don’t want to wait five or ten minutes to get a question answered. If a business wants to have the best possible customer service experience, making use of online chatbot options is necessary. This has changed the customer service game and will continue to be prevalent and expand in the future. 

AI and the Future of Customer Service

AI is a huge part of the future of customer service. It’s possible to use AI in conjunction with chatbots to give customers an even better customer service experience than before. This should lead to substantial boosts in customer satisfaction scores while also helping customers save time. Customer service will continue to be a big part of business success, and companies will need to evolve their customer service policies to keep up. 

from Dearbhla Kinsella | Business http://dearbhlakinsella.com/the-evolution-of-customer-service/
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Obtaining a Business Loan in Ireland

If you’re trying to start a business or are looking to grow your business, it’s necessary to have funding. Many companies need to look into procuring business loans to make things happen. If you want to obtain a business loan in Ireland, there are a few things that you should know. Take a look at the information below so that you can have the easiest time possible to get the business loan you need. 

Understand the Three Main Types of Financing

Before moving forward, you should understand the three main types of financing. There is debt, which refers to borrowing from an external source such as a bank. Equity involves having an investor put cash into the business in exchange for being given a stake in the business. Finally, cash can be inserted into the business by borrowing from family or procuring grants from government agencies. 

Consider Visa Business Cards

Visa business cards are a good alternative to traditional business loans. They are a great cash management tool that allows business owners to make necessary purchases for their businesses. Businesses can make purchases without having to utilize the cashflow for 37 days, and the purchases are interest-free. All businesses in Ireland can benefit from making use of these cards for short-term needs and small purchases. 

Term Loans Might Be Appropriate

Term loans are one of the most common types of business loans that companies elect to use. Most business loans in Ireland last from three to five years and businesses are expected to make monthly payments on the loan. These business loans make sense for large purchases and they give businesses a way to pay back the loan with very reasonable terms. 

Asset Finance Is an Option

Asset finance is an option when you need something specific for your business. You can have the bank buy the asset and they will then lease that asset to you via a certain type of agreement. Typically, these asset finance lease agreements last for three to five years, and businesses will need to make monthly payments on the lease. At the end of the lease period, businesses can choose to extend the lease or buy the asset outright. 

from Dearbhla Kinsella | Finance http://dearbhlakinsella.org/obtaining-a-business-loan-in-ireland/
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A Guide to Having Productive Meetings

Meetings are an important part of the business world and sometimes you might wish that they were easier. Many people struggle to keep meetings focused and productive. If you’d like to improve your ability to hold meetings while making them as productive as possible, keep reading. The following guide will help you to have better meetings moving forward. 

Prepare an Introduction

It’s always best to go ahead and prepare an introduction ahead of time. This should occur at the beginning of your scheduled meeting, and you should do your homework so you know who is attending the meeting ahead of time. This will make it simple to tailor your introduction, while also leaving time for others to introduce themselves if necessary. Proper planning is one of the best ways to ensure that your meetings go smoothly. 

Determine What Your Goals Are

Determining what your goals are is also imperative because your meeting needs to have a focus. Your meeting should be focused on accomplishing certain goals, and you need to lay things out properly to do so. Think about what you want to do and then create a roadmap for the meeting. This should lead you closer to your goals as the meeting comes to a close. 

Address Important Topics Early in the Meeting

Addressing important topics early in the meeting is always for the best. There is always the potential that something will interrupt your meeting, so you need to use your time wisely. Taking care of important agenda items early on will ensure that these topics are addressed instead of being glossed over. Never save important topics for the end of your meeting. 

Take a Stand on Tangents

You need to take a stand on tangents one way or the other. Sometimes a person in the meeting will start discussing a side issue or a new topic will come up naturally. You should determine right away whether you’re going to shelve such topics for later or allow discussions to continue. This is about making good decisions so you don’t waste time that you should be spending on other matters. 

from Dearbhla Kinsella | Business http://dearbhlakinsella.com/a-guide-to-having-productive-meetings/
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The Difference Between Finance and Economics

You probably understand that economics and finance are closely related to each other. Finance often informs and influences economics and vice versa. There are some cases where the distinctions between finance and economics become unclear. Keep reading to explore the difference between finance and economics. 

Finance 

Finance could be considered something that comes from economics in some ways. It is defined as managing, creating, and studying money, assets, investments, liabilities, banks, credit, and other things that make up the financial system. Finance is usually focused on studying prices, cash flow, financial markets, and interest rates. 

It’s also worth noting that there are different categories of finance to consider. Private finance refers to the decisions and activities of one person or one household. Public finance is a category that focuses on taxes, government spending, and other governmental financial issues. Corporate finance examines things at the corporate level and has to do with business expenses and managing assets. 

Economics

Economics is known as a type of social science that studies how people produce, consume, and distribute goods and services. Despite being a social science, the study of economics is actually very mathematics-oriented. The study of economics is important when you’re trying to understand how the economy is working. People study economics intending to determine how economies work so that they can explain things and make good decisions. 

There are two types of economic subcategories to consider. Microeconomics is the study of economic tendencies that is focused on individual decisions. Macroeconomics focuses on the entire economic system. Both types of economics are important when you want to understand things properly. 

Both Economics and Finance Are Important 

Both economics and finance are important areas of study that cannot be ignored. It should be easy to see that these two terms are related to one another, but you can also see that they differ in significant ways. People who study economics will need to be very familiar with the concept of financing. You should now be able to have a better idea of what makes these two terms distinct while understanding why they both matter so much.

from Dearbhla Kinsella | Finance http://dearbhlakinsella.org/the-difference-between-finance-and-economics/
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How to Build a Sustainable Business

It’s important to do your best to create a sustainable business model. If you only focus on creating something that makes money right now, there’s a chance that you aren’t setting yourself up for future success. Building a sustainable business really does require a different approach. Read on to explore how you can create a sustainable business. 

Learn to Play the Long Game

Planning ahead will help you set your business up for future success. Sometimes you need to play the long game instead of focusing so much on short-term profits. You should never trade your prospects of long-term success for short-term gains. Keep an eye toward the future and try to understand where the market is going so you can make wise decisions. 

Create More Revenue Streams

Your business is going to be safer if you can take the time to create more revenue streams. Companies that rely on only one or two revenue streams will face more danger moving forward. Diversifying is always a good idea, and you should try to do so in natural ways. Even just ensuring that you have a broad base of clients or customers can be helpful. 

Hire the Right People

Hiring the right people will be a huge part of your success as a business. If you want to enjoy sustainable business success, you need to make sure that you have good people in the right positions. Take the hiring process seriously and look for people that are a good fit for certain positions while also considering how well they mesh with the overall vision of your company. If you make sure to do this, you’ll have a much better foundation for future success. 

Share Your Vision with Your Team

Of course, you also need to share your vision with your team to make sure that everyone is on the same page. Be sure to have conversations about your vision and about any goals that you have set for your business. This will ensure that everyone is working toward the right goals while keeping the values of your business in mind—communication matters when you’re trying to build a sustainable business. 

from Dearbhla Kinsella | Business http://dearbhlakinsella.com/how-to-build-a-sustainable-business/
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