Startup Companies

Startup companies are a dream of individuals and institutional investors. Along with lower sustenance costs and a high potential of return on investment, startup companies also provide more scalability than an established business. In spite of the high failure rate associated with startup companies, their potential to grow with minimal resources and scalability to direct the growth in any direction has made them a popular investment choice. However, the intellectual property of startup companies plays an important role in deciding the value of the company. While 75% of the value of a public company is based on its intellectual property, 100% of the value of a startup depends on its intellectual property. This dependency of investor enthusiasm on the intellectual property has forced startup companies to look for newer ways to raise capital such as direct registration, reverse mergers, self registration etc.

Reverse merger is a cheaper and faster counterpart of IPO. When an existing public company becomes inactive and has any assets meeting with the exchange requirements, it may continue to be traded on a stock exchange. However, a company with no assets is normally traded in the OTCBB (Over the Counter Bulletin Board) or in the Pink sheets. A startup company may buy such "shell"s and continue to use the trading public stock. Though this is the fastest way to go public, it also had its share of disadvantages such as the new company stock trading without complete disclosure. In order to prevent abuse of the reverse merger option, the SEC review process mandates the submission of a Form-8K within four days of the merger. Since this was no different that issuing a public offering, the startup companies were now forced to find better alternatives.

Direct registration is a process where startup companies issuing the shares hold the shares, and the buyer is identified as the owner of the shares. Direct registration refers to registering the buyer's name in the books of the company and can be done by directly purchasing shares from the company. While similar to owning paper certificates, it also reduces the burden of paperwork. However, a minor disadvantage is that the shares cannot be sold at any time. Since the shares have been bought from the company, the share selling may happen once at the end of the day, week or month.

Despite their advantages, the aforementioned approaches are expensive. Self registration with the SEC is a cost-efficient alternative. This can be done by meeting the reporting requisites of the SEC review process. This way, the investor confidence in the shares increases. Moreover, registration with SEC is a better choice since unregistered companies are allowed to trade only on Pink sheets and other OTC forums.

From small businesses to enormous corporations, all successful businesses began with business plans.

Benefits of Building a Corporate Image

Corporate image is seen as one important factor that can influence the effectiveness of marketing. Therefore it is very feasible if the image is seen as one of the most important asset owned by a company or organization.

According to Zinkhan There are several reasons underlying the importance of companies establishing and managing the company's image, namely:

1. Can stimulate sales.
2. Company can build a good name.
3. Build an identity for its employees.
4. Affect investors and financial institutions.
5. Promote good relations with a community, with the government, with community leaders and with the opinion leaders.
6. Get a position in the competition.
   

SWOT Strategy

At some time we've talked about the sense of a SWOT Analysis and the 5 Things That Should Be Observed In Determining The SWOT Analysis. This time we will discuss strategies that will be based on the results of the SWOT analysis.

Basically this determination SWOT strategy is an action or decision made based on a combination of internal conditions themselves with the external influences that affect the continuity of business.

These strategies are:

1. Strength-Opportunity Strategy (SO Strategy)

This strategy is a blend of power possessed by a business entity with opportunities or opportunities that can benefit the company.

2. Strength-Threat Strategy (ST Strategy )

In the ST strategy, the results of an internal force analysis of a business entity owned, will be used to make decisions in the face of threats that may disrupt the continuity of business carried on.

3. Weakness-Opportunity Strategy (WO Strategy )

In this strategy, the weakness which may be owned by the company will be reduced and even eliminated possible to grab the opportunities that exist.

4. Weakness-Threat Strategy (WT Strategy)

The decision in this strategy is probably the most complicated to be decided as compared with previous strategies. Each company will always compete to gain market share there. Other companies will analyze the weaknesses that may be owned by your store, and they are waiting for the right to attack you, and it is a threat to the sustainability of your business. WT strategiy are defensive strategy designed to confront the threat from competitors who might attack the weaknesses that are owned by the company.

To be more clear about the relationship with the internal conditions of the external conditions to decide on a strategy of SWOT, consider the following chart:

Whatever form of business, both retail and production efforts of business, strategy and SWOT analysis is always used. To better understand the analysis and strategy, please see the Case Study: A SWOT Analysis In Retail Stores as an example of implementation of the SWOT analysis and strategy in a business.

Manager is a Leader

In a business , you may always hear the term manager. The question is, whether the different between manager with a  leader? there are managers who are not leaders? Then what is the difference between the leader and the manager? The answer is yes, there might be a manager, but not a leader, because the manager is a position whose is given by an organization in the form of Letter of Appointment, while the leader is a form of behavior or attitude held by a person inside him so that they can control and direct others to be submissive and willing heart to do a thing desired by him. So of course, a manager does not necessarily have the character of a leader, but a leader could have served as a manager.

A manager who has the character as a leader is a manager who is able to direct and control their employees so that they are willing to do something in accordance with their wishes. The employees will be willing to work even without any coercion. A company that has a manager as a leader will make the conditions in the work environment tend to be more comfortable. A leader will understand the conditions and situation of his men. He was able to touch and move the hearts of employees.

An organization, whether or not a business organization or even a retail stores, needed someone who not only served as a manager, but in his heart also has the soul of a leader who is able to protect, nurture, and direct the people under it, and maybe even also in the surrounding . Then lets began studying to become a leader, because having the ability as a leader will be more difficult rather than a position as manager.