venture-capital

The Flora and Fauna of Venture Capital

I have found that many entrepreneurs are confused by the differences between the various flavors of angel and venture capital. This is not surprising since the categories used are overlapping and are often used inconsistently by different investors. However, there are some broad generalizations that can be drawn – typically based on the timing of the proposed investment and the typical purpose of the investment in the company’s lifecycle. Depending on the timing, you can also draw some basic conclusions as to the type of investor that will be involved and, in each category, generalizations can be made as to the type of security the company will sell and the magnitude of return the investor will seek.

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The earliest stages of investment are usually characterized as seed rounds, proof of concept investments or angel investments. These investments usually do not occur until after the investor has tapped out his friends and family (in what is often characterized as the “friends and family” round). The money invested is intended to allow the founders of the company to do their initial research, to complete the initial programming or to apply for the initial patent(s). Companies at this stage usually do not have a saleable product and do not have very many employees, other than the founders/inventors. The investors are almost always NOT traditional venture capital funds. Rather, they consist of wealthy individuals or groups of individuals that are willing to invest their own money and take the extreme risk involved in making equity investments into companies that often only have a good idea. Alternatively, the investor may be a government or university funded incubator that was established to help entrepreneurs or scientists get their ideas off of the ground. In this stage, the amount of the investment is typically relatively small – e.g. $100,000 to $500,000, seldom more than $1,000,000 in total. Also, the investor usually takes common stock in the company – the same stock that the founders get. Alternatively, the investor will take a convertible note that allows them to have the protection of debt at the beginning and also allows them to convert at the valuation established by later investors. Investments at this stage are extremely risky and are subject to significant dilution when new investors come in during later stages. Consequently, angel investors look for returns of at least 10x their initial investment, and sometimes as high as 20x or 30x their initial investment. The next stage of investment in a typical company’s life cycle is early stage venture capital. This type of investment usually is not available to a company until it has a proven product and a business plan. However, it is not necessary that a company be profitable or even be producing its product. The funds the company raises will be used to mass manufacture the product, market the product, build a sales force and further develop the product. For this investment, the company will be able to attract early stage venture capitalists. These venture capitalists often have smaller funds which are more suited to making the relatively smaller sized investments found at this stage of a company’s life. In this stage, the amount invested is typically in the $1,000,000 to $5,000,000 range. The early stage venture capitalist will almost always be investing in Series A preferred stock of the Company. This security will be superior to the common stock held by the founders and any angels and will typically come with dividend rights, liquidation preferences, some form of anti-dilution rights and a right of first refusal on stock sales by the founders and angels. Sometimes it may also come with pre-emptive rights, redemption rights and drag along rights and other rights and preferences. The venture capitalists at this stage will look for returns of at least 5x their initial investment and would gladly accept higher returns. There may be multiple additional rounds of equity financing after the Series A round. These types of funding are often called growth capital or mezzanine financing. Usually, the company will either be close to profitability or will have a clear path to profitability and the funds are meant to allow the company to expand its sales force and marketing efforts and ramp up its revenue growth.

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The money may also be used to develop additional products or to research expansion ideas. These investments are usually made by the larger size venture capital funds and the amount invested can range from $1,000,000 to $25,000,000 or higher – depending on the company and the market opportunity. The investment will typically be made for additional rounds of preferred stock – for example, Series B or Series C preferred stock – and each successive round will generally having superior rights and preferences to the prior rounds. Venture capitalists at this stage of investment may still look for 5x investment returns, but depending on the opportunity and the trajectory of the company, will often settle for 2x or 3x returns. Occasionally, a company in the growth phase of its life cycle, or that is on the cusp of the growth phase, will raise bridge capital. This is typically debt that “bridges” the gap in funding between rounds of venture capital financing. Usually, it takes the form of a convertible note that will automatically convert into the next round of preferred stock, sometimes at a discount. The lender may be an existing investor in the company or it may be a new venture capital fund that is contemplating making the follow on round. Another type of financing that is available to companies in their growth phase is venture debt. This is a loan from a bank that is often securitized by the company’s accounts receivable, inventory or equipment. The venture lender will take warrants in the company to help increase its return on the loan. Typically, these lenders seek combined returns in the 12 to 18% range. The final type of financing that a company may seek can be characterized as acquisition or buyout capital. This type of capital is used to purchase the assets or stock of other businesses that will then be adsorbed into or added onto the company. The investor may be the company’s existing venture capitalists or it may be a private equity fund that is building out a platform in the company’s industry. In the later case, the investment may come with a right to purchase the company outright in the future. This type of financing also occurs when a company’s venture capitalists start planning their exit strategy. By putting together the right pieces it may make the company more attractive as an acquisition candidate or perhaps more eligible for an IPO.

Collectible Coins

The Advantages of Owning or Buying Gold or Silver Graded Collectible Coins

Are there major advantages of owning or buying gold or silver graded collectible coins over that of bullion or bars? Most definitely there is. The following is not an exhaustive list, but does include several things to consider. Coins cannot be beat as an investment opportunity.

Coins are extremely easy to handle and store, in contrast to bars or bullion, which is not. They are manageable in size. They are easy to hide for the sake of security, and they are not heavy, so are easy to carry from place to place. This makes their sale much easier than bullion.

Coins are also very easy to buy. The buyer only has to check the karat and percentage. These should be 24 k and .9999 percent, respectively. When buying or selling bars, they must be assayed. This means involving transport and a third party, all which make for a security problem. This is not true for coins. Collectible gold coins are not only a beautiful acquisition; they have a history behind them. They have been in circulation for some period of time. The following coins are not all that are collectible, but are the major ones.

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American Gold Eagle Coins These coins are beautiful, one of their pluses. They are considered possibly the most beautiful of all coins. A nest of eagles is on the reverse side, and a walking liberty on the obverse side. They were minted and issued as with a face value. They can be bought directly from coin dealers or at auction, such as at Ebay. Of all coins collected and traded, they are the most traded. They consist of 91.67% gold and are 22K. This is below the desired standard, but because of their beauty they are still much desired.

Canadian Gold Maple Coins These coins rival the Gold Eagle coin for beauty, and are even considered the most beautiful in the world by some. They are the most pure, consisting of .9999% 24 karat gold. They are inscribed on the obverse side with a bust of Queen Elizabeth II and the maple leaf on the reverse side. They are legal tender in Canada, and can be purchased from most coin dealers.

Gold Krugerrand Coins The South African president, Stephanus Johannes Paul Kruger is the figure depicted on this coin. Due to several adventure movies featuring the coin, it became very famous. It contains a full ounce of gold, one of the first to do so. It can also be obtained in one-fourth, one-half, and one-tenth ounce sizes. Though they are not beautiful like the Gold Eagle and Maple Leaf, they are nevertheless at a premium due to their popularity. They can be gotten at most coin dealers, but demand a high price.

Silver Collectible Coins These coins have all the advantages of gold coins, except the beauty. Most of the silver coins are not considered nearly as beautiful as the gold coins. Most investors actually collect the junk dime, because it is so cheap, readily available, and result in the best investment. Silver has risen in price much more lately than has gold; making these silver coins the better investment. Still, the beauty of the gold coins can’t be discounted. Collectors tend to collect them for their beauty as well as their investment. In a time of great economic catastrophe, though, beauty might not be such a consideration.

In summary, the advantages of coins are that they are relatively easily obtained and have almost nonexistent buying and selling costs. They can be stored locally and handled with ease. They are readily available to the collector to admire. Coins are also easily recognizable and can be assumed to have certain known traits, though if they have been tampered with, this won’t hold true. Tampering will probably be evident, however.

Venture Capital

The Stages of Venture Capital Investing

The following is Part 2 of my five-part series on the roles of angel investors and venture capital investors in emerging technology sectors with explosive upside potential, such as the nanotech, cleantech, biotech, information technology and new media sectors. In Part 1, I gave a general overview of the playing field. Below, I examine the stages of an emerging growth company’s lifecycle and the types of investment that it hopes to obtain at each relevant stage. Introduction Many investors are confused by the differences between angel and venture capital. This isn’t surprising; the categories are overlapping and are used inconsistently. However, there are some broad generalizations that can be drawn, typically based on the timing of the investment and the purpose of the investment in the company’s lifecycle. Depending upon the timing, you can draw some basic conclusions as to the type of investor that will be involved (e.g. single angel vs. angel consortium vs. venture capitalist). And, in each category, you can glean the form the investment will take (e.g. common stock vs. convertible debt vs. preferred stock) and the size of the return investors can expect. That is, if there’s a return–very few private emerging growth investments are actually a success. More below the fold. Seed Round The earliest investment stages are usually characterized as seed rounds, proof of concept investments or angel investments. These investments usually don’t occur until after the target entrepreneur has tapped out his friends and family in what’s usually called a “friends and family” round. The money you invest is intended to allow the founders of the company to do their initial research, to complete the initial programming or to apply for the initial patent(s). Companies at this stage usually don’t have a saleable product and don’t have very many employees, other than the founders/inventors. Traditional venture capital funds very rarely invest in seed rounds. Rather, seed investors typically consist of angels that is, wealthy individuals or groups of individuals that are willing to invest their own money and take the extreme risk involved in making equity investments into companies that often only have a good idea. Occasionally, a seed investor may be a publicly or privately funded incubator established to help entrepreneurs or scientists get their ideas off of the ground. In the seed round stage, the amount of the investment is typically small, say $100,000 to $500,000, seldom more than $1,000,000. Also, the investor usually takes common stock in the company–the same stock that the founders get. Alternatively, the investor will take a convertible note that allows him to have the protection of debt at the beginning but with the possibility of converting and receiving the upside of equity. Typically, the conversion will occur in concert with the closing of the next round of investment and will be at the same per share price used in the next round. Often, you receive some sort of additional incentive for making a seed round investment such as a conversion discount or grant of warrants. Investments at the seed stage are extremely risky and are subject to significant dilution when new investors come in during later stages. Consequently, angel investors look for returns of at least 10x their initial investment, and sometimes as high as 20x or 30x their initial investment.

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Early Stage Venture Round The next stage of investment is early stage venture capital. Investors usually aren’t interested in making this type of investment until the company has a proven product and a business plan. However, it isn’t necessary that the target be profitable or even be producing its product. The funds invested will be used to mass manufacture the product, market the product, build a sales force and further develop the product. Typically, these sorts of investments are made by early stage venture capitalists, larger angels or angel consortiums. Early stage venture capitalists and angel consortiums usually have smaller funds to deploy which makes them more suited to making the relatively smaller sized investments found at this stage of a company’s life. In this stage, the amount invested is typically in the $1,000,000 to $5,000,000 range. The investors will almost always be purchasing Series A preferred stock of the target. This type of stock is superior to the common stock held by the founders and any seed round angel investors and will typically come with dividend rights, liquidation preferences, some form of anti-dilution rights and a right of first refusal on stock sales by the founders and seed round angels. Often, the investors will also receive pre-emptive rights, redemption rights, drag along rights and other rights and preferences. Investors at in early stage investments will typically look for returns of at least 5x their initial investment and would gladly accept higher returns. Growth Stage Venture Round After the Series A round, there may be multiple additional rounds of equity financing. These types of funding are often called growth capital or mezzanine financing. Usually, the company seeking this sort of investment will either be close to profitability or will have a clear path to profitability and the funds are meant to allow the company to expand its sales force and marketing efforts and ramp up its revenue growth. The money may also be used to develop additional products or to research expansion ideas. These investments are usually made by the larger venture capital funds and the amount invested can range from $1,000,000 to $25,000,000 or higher, depending on the company and the market opportunity. The investor typically will receive additional rounds of preferred stock–for example, Series B or Series C preferred stock–and each successive round will generally have superior rights and preferences to the prior rounds. Investors at this stage may still look for 5x investment returns, but depending on the opportunity and the trajectory of the company, may settle for 2x or 3x returns. Bridge Round Occasionally, investors will be willing to invest bridge capital into a company in the growth phase of its life cycle, or one that’s on the cusp of the growth phase. This investment takes the form of debt that “bridges” the gap in funding between rounds of venture capital financing. These investments range in size depending on the company and the market opportunity and they’re made by all types of investors, depending on the size of the investment. The lender may be an existing investor in the company or it may be a new angel or venture capital fund that’s contemplating making the follow on round. Usually, the debt will be represented by a convertible note that will automatically convert into the next round of preferred stock, sometimes at a discount. Also, investors will usually want some sort of warrant coverage to provide equity upside in the deal. Investors at this stage expect a blended return that takes into account the interest rate on the debt and the potential value of the equity. These target returns vary greatly, but often move in the 12 percent to 18 percent range. Buyout Capital Round The final stage is characterized as acquisition or buyout capital. This is used by the company to purchase the assets or stock of other businesses that will then be absorbed into or added onto the target company. The investors may be the company’s existing venture capitalists or it may be a private equity fund that’s building out a platform in the company’s industry. In the latter case, the investment may come with a right to purchase the company outright in the future. This type of financing also occurs when a company’s angels and venture capitalists start planning their exit strategy. By putting together the right pieces it may make the company more attractive as an acquisition candidate or perhaps more eligible for an IPO. In the next three parts of this article, I’ll explore angel investing, angel syndicate investing and venture capital investing, in greater detail and I’ll discuss the important characteristics of each mode, including typical legal and business issues.

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Where to Sell Gold

What to Expect When You Sell Your Gold
Selling gold that you have in your possession is usually a pretty straightforward deal. You take or send your gold into a dealer or shop, they test the fineness, and then give you an offer based on the quality, quantity, current spot price, and how much they need to profit to cover their overhead. One of the most important things to keep in mind when you are selling your gold is that you will probably never get spot price for your bullion, and you won’t get anywhere near spot price for scrap gold. This is simply because places won’t be able to resell your gold for much over that price.
For most people selling jewelry, or some other sort of gold that either isn’t in coin or bullion form, the gold dealer might make you an offer from anywhere between 20% and 80% of what they can sell it for. The lower end of this range would be from pawn shops late at night, or from ads you might see on TV where you can mail in your gold for cash. The higher end of the range will come from jewelry shops and specialty gold buyers. If you have a lot of gold to sell you can get a higher premium on it.
If you are selling gold coins, you might be able to get higher than spot price because of the numismatic value of the gold, but that’s unlikely as most gold coins have essentially no numismatic value. The same goes for very fine jewelry, especially if it is very old or has some sort of documented history tied to it.
Places to Sell Gold
One of the first places that come to mind when someone thinks about where to sell gold is a pawn shop. Pawn shops are well-known for buying pretty much anything, but if you go into almost any pawnbroker’s store, you will find an expansive jewelry counter with plenty of gold. Pawn shops are one of the most popular places for selling gold because you can walk out with cash for your gold 20 minutes after you walk in the store. This can be handy in a pinch, or if you are just looking at selling gold jewelry or other pieces of gold you might have around your house.
Most major cities have dedicated gold buyers. These are people who make a living off of buying and selling gold, and they are always in need for more supply. Finding a gold buyer around your area isn’t very hard, most of the time, they advertise pretty heavily because they know there are plenty of people out there who have gold, but they may not be willing to part with it at a certain point in time. Later on down the road, they might think, “Hey, I’m wanting to sell my gold, who should I call?”, and the branding that the gold buyers have done around town would likely pay off. Coin shops are usually good for selling gold, especially if you have gold coins, since they probably already have their own list of gold buyers, allowing them to give you money that day, then turn around and unload the gold on another buyer soon thereafter. It’s possible to sell scrap gold at coin shops, since most of them have the right tools needed to gauge the quality of gold that you have, but there are better places where you can get more money for when you want to sell your old gold.
Jewelry stores will often advertise that they can buy gold, since they do use so much of it anyway, especially the stores that specialize in creating their own jewelry. If you plan on selling gold to a jewelry store, call around to get their current offer prices before driving around town to 5 different places just to hear 5 different answers. Larger jewelry stores will usually tend to give more money for your gold than both smaller stores, and chain stores.
If you have a lot of gold for sale, you might be able to sell it to a gold investor. These investors are looking for physical gold to hedge against inflation and the stock market. Generally, they will not be interested in a couple of gold rings, but they would certainly be interested if you had gold bullion for sale, or a large amount of gold from the Treasury, or just investment grade gold in general. Finding a gold investor can be difficult, but if you talk to your financial advisor, they may be able to point you in the right direction, or they may know someone looking for some gold for sale.

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Best Place To Sell Gold
Figuring out the best place for selling your gold can be very tricky, since it does depend on a variety of factors.
• Location – Selling your gold in a large city is a lot easier, and can potentially bring you more money since there are plenty of other people who want to buy gold as well, driving up prices.
• What’s in demand – In a down economy, bullion gold will be in higher demand than treasure gold.
• Supply – If there are a lot of people in a certain area looking to exchange their gold, you will still be able to find someone to buy it off of you, but you might get a lower price than you normally would.
• Season – The closer you get to the holidays, the more people are trying to spend money on gifts and parties instead of scrap gold or investment gold. At the same time, people looking to get extra money will be selling gold and the prices will go down.
• The kind of gold you have – If you have gold that is considered investment grade, sending it into a “mail-in your gold” program makes little sense. The same thing goes for very nice gold coins, taking them into a pawn shop when you can sell them to a coin dealer isn’t the best way of going about things.
• Who you sell it to – Jewelry stores may not be able to handle a large amount of gold, or may shoot you a lower price than normal if they think they can’t use it right away. The individuals you sell your gold to are all in their own unique markets and situations.
If you have gold bullion or proof gold coins, you can easily get 90% of the spot value, most of the times closer to 98%+ of spot value from people looking to buy gold as an investment. These people realize are buying not to turn around and sell it right away, but they are going to hold onto it. Since historic rates for gold have been trending higher, investors can afford to pay near spot price for your gold now, then sell it years down the road, hopefully for a profit.
The best place to sell your gold if you have jewelry or other small items could very well be a nice pawn shop. Pawn shops that cater to people looking to spend a decent amount of money can afford to give you more money for your gold than you might be able to get elsewhere. If they have their own gold smelting operation, or can sub-contract it out, they stand to be able to make more money the more gold they get, so they offer a higher price hoping to outbid their competition.
Selling gold coins to a coin shop is usually your best option when it comes to how much money you’ll get from selling, how easy the people are to deal with in regards to knowing what the coins is worth, and the ability to possible consign your gold for a certain percentage if the dealer would rather go that route.
How to Get the Best Price For Your Gold
Getting the best price for your gold depends a lot on who you sell it to. Besides the obvious differences in the people who buy gold as an investment as opposed to pawn shops and online gold companies, and what they can offer you, there are a few tricks you can use to make sure that you get the highest amount for your gold.
1. Call around – This is probably the best tip that can help you get the most money out of trading in your gold. Call around to jewelry stores, pawn shops, coin dealers, and gold buyers in your area to see what kind of price they can offer you for your gold. This works well when you try to sell your scrap gold, when you have a gold coin or a piece of gold jewelry, you may actually have to take it in so they can put a solid price on it depending on the condition.
2. Check online – There are plenty of places online that can help you find the best place to market your gold. Online gold buyers may enable you to send your gold in by insured mail, send you an offer, and if you accept it, send you a check. These mail-in programs are probably the most convenient way of selling gold online.
3. Take in your gold for an appraisal – If you have a lot of gold and you aren’t sure whether it’s 14k or 24, or if you have gold coins and you aren’t sure of their value, take it to someone who can give you an honest assessment of what the gold is worth. By having a firm number in your hand, you will at least know if someone is making you a fair offer, or if they are trying to lowball you when you sell your gold.
4. Always negotiate the price – When you sell, you’ll usually be able to talk to someone with the authority to make a deal with you. They do have to make a profit, but their first offer will always be their bottom price, with a little bit of negotiation, you can get them to raise their offer. You’ll win because you get more money, and they’ll win because they will still be able to sell your gold for a profit.
Selling Gold Online
If you decide that selling your gold online is the best way to go, you are going to have to choose among many different gold buying websites. These can be divided into two basic categories: scrap gold sites, and bullion gold sites.
Scrap gold sites will buy just about anything. If you have old jewelry, medallions, coins, even bullion – they’ll buy it. The down side is they are also likely to give you a really low price. Their typical customers aren’t investors – they are people who happened to have gold and now need cash, and are usually desperate. Hopefully you’ve taken our advice on buying investment-grade bullion and aren’t in that boat! Worse yet, you really have to read the fine print with these operations. Some of these placed let you ship the gold to them for free, but essentially hold the gold hostage if you don’t accept their (low) offer, charging you a high shipping fee to get it back. Especially if you’re dealing with small amounts of scrap gold this can devastate your returns and you’re almost stuck selling to them.
While the number of “mail-in your gold” ads have gone down over the past year, there are still plenty of TV spots that run which promise a lot of money for your spare gold. These services usually give you the least amount of money out of any buyer, mainly because they have to pay a lot of money for every TV commercial that they run.
Selling your gold at a scrap site is probably not the best idea for most people, especially if you live near a pawn shop or any of the other places listed above, since you will get quite a bit more money from those places. If you do decide to exchange your gold at one of these locations, be sure to check around for some customer reviews before you send anything in. People tend to talk about how much they were offered from online gold buyers, which means you can get a basic idea how much they are giving per ounce of gold.
The other kind of site is the bullion gold site. Most often, these are the exact same sites that you purchased your bullion from in the first place. In fact, some will even store it for you between purchasing and selling back to them (for a fee, of course). Almost invariably these guys only accept identifiable investment-grade bullion, including the common bullion coins and marked bars from well-known mints suck as Perth and Credit-Suisse. The good news is they pay top-dollar for this gold, often at or barely under the spot price. This is why you bought investment gold in the first place.

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Pros and Cons of Places to Sell Your Gold
• Jewelry Stores – Pros: Plenty of jewelry stores to choose from, helpful staff in a professional environment, usually you’ll get a fair price for your gold. Cons: Some stores may not be interested in buying, you will get below spot price.
• Pawn Shops – Pros: You will get money for your gold immediately, you can negotiate the price, they will take about any kind of gold. Cons: Most pawn shops will give you below spot price, there may not be a lot in your area.
• Gold Investors – Pros: Usually will give near spot price for gold. Cons: Most of the time they are only interested in investment grade bullion or coins, may be very hard to find an investor in some areas.
• Coin Shops – Pros: They will offer a decent price for most gold coins, you might be able to consign instead of sell outright. Cons: Only interested in coins made of gold for the most part, there may not be too many in your area.
• Online Gold Buyers – Pros: Very convenient, usually don’t even have to leave your house to get your money, great prices from investment gold sites. Cons: Offer you the least amount of money for your gold (from scrap gold sites), it can take a couple of weeks from the time you wish to sell until you have your money.
So Where Should I Sell My Gold?
If you have investment grade gold bullion, the best bet would be to find a gold investor and sell your gold to them, or to sell directly to a large bullion dealer/mint. You’re going to get pretty close to spot price, and they will be interested in any good gold that you have. For scrap gold, if you can find a jewelry shop buying gold at a decent price, they would probably be your best bet, you’re not going to get spot price, but you’ll get more than at most other places. If you can’t, pawn shops in large cities that deal with a lot of gold or similar specialty gold buyers are your best bet. Avoid anything that starts with shipping scrap gold so your gold can’t be held hostage with shipping costs.

Stock Exchange

This Is Everything You Need To Know About Owning A Listed Company

Perhaps the biggest financial event for millennials this year is the listing of Snap. The concept of owning a piece of a company that is a daily part of our lives is apparently the reason why a great deal of millennials started investing in the stock market.

If the listing of a millennial-owned, millennial-driven company could lead to so many of us taking interest in the stock market, then surely the listing of more millennial-owned companies should be much sought after.

Citi bank

Meet Donna Nemer. She is the Director at the Johannesburg Stock Exchange (JSE) and a former Managing Director at Citi bank in New York. Donna found herself in the world of global banking when she realized that it would afford her the dream of working and travelling extensively throughout the world.  We decided to tap into her well of knowledge to learn more about what it would take to get more millennial-owned businesses listed on a stock exchange.

Millennials are known to be the entrepreneurial generation. An article by Fortune has labeled us as “millennipreneurs,” as we are starting more companies, managing bigger staffs, and targeting higher profits than our baby boomer predecessors. How important is it that startup founders think about the possibility of listing their companies as they grow in profits?

The growth of small- and medium-sized (SME) businesses is crucial to the health of emerging economies, as these companies are key employers.

It is with this in mind that the stock exchanges such as the JSE created AltX. The AltX is for companies that are well established, but not yet ready to list on the JSE’s Main Board.

Given our tough economic climate, many countries are increasingly looking to SME businesses to promote growth and make a dent in the unemployment figures. However, access to financing remains a challenge that hinders expansion for many businesses, as banks are increasingly unwilling to lend to smaller businesses.

This is where a listing on AltX can be an exciting opportunity for smaller businesses to raise capital. With this said, it is important for stock exchanges to attract SMEs and market to them in the way that they need to be marketed to. We need to be speaking the same language as them, using more online and digital platforms and using faster and better technology, making it easier for them to do business with us.  Access to capital markets is critical to small companies that are looking to expand their brand and grow.

We are very proud of the track record of AltX in that over a third of the companies that have listed have successfully grown and migrated onto the main board of the JSE.

When can a startup founder start considering listing their company?

The decision to list your company’s shares on a public market is a significant one. It must be based on an honest and realistic assessment of your company. A listing on the JSE improves the ability to access capital to fund acquisitions and organic growth. Local scrip or local fund raising can be used to fund the company’s expansion plans.

As your company grows and matures, listing on the JSE may be the best vehicle for your company to raise capital, improving your profile.

The minimum criteria to satisfy a listing are as follows

Share Capital
R2 million ($151,000)

Historical financial information on listing
Minimum of one financial year required

Profit forecast
One full financial year required unless three year profit history is provided

% held by public shareholders
10% ( applicable on listing)

Board of Directors
Competition of the AltX Director Induction Programme (this can be done prior to or after the listing)

A listing means that the company will go public so even if a company meets the listing requirements, timing is important.

Finance

Key considerations for going public include:

Financing:

Have other alternative financing sources been explored and/or exhausted?
Does your company need public financing for growth?

Management:

Is your management team experienced and balanced?
Does it include directors and senior executives with a proven track record in managing public companies

 Business Plan:

Is there a well-developed business plan that identifies potential revenue and income as well as the resources necessary to sustain growth and success?
Is your company prepared for the compliance and disclosure requirements that public companies are required to follow?

 Growth Potential:

Is the market size for your company’s product or service sufficient to sustain the growth plans and expectations that will attract broad investor interest?
Is your company profitable, or has its product reached commercialization with evidence of market acceptance?

 There are also other factors to consider such as transparency and costs. When it comes to ownership, the owners and founders of the company must consider how much control they want to retain. When a company goes public, a reasonable percentage of shares must be publicly owned and tradable.

Can you briefly take us through the Initial Public Offering (IPO) process.

Interact with the Primary Markets Team of the JSE
Decide where your company will feel most at home – on the main board on the smaller AltX board, which is for small to medium companies
Find a sponsor (Main Board) or a Designated Advisor (AltX)
Submit all required documents to the JSE Issuer Regulation division
Embark on a capital raising roadshow
Finally, List

What is the most interesting Initial Public Offering (IPO) process that you have been a part of and why?

All IPOs are different and I must confess that I have found them all exciting.  To see the company CEO and executive team, together with advisors, accountants, legal advisors all together to open the market is truly exceptional.  Here in South Africa we call the sound of the kudu horn and beat the African drums to announce our listings which is not just steeped in our cultural heritage but gratifying after all the hard work that goes into a listing.

That said, two recent listings stand out for me personally.  One was the SA listing of AB InBev, a large multi-national company that, while acquiring SAB Miller, listed on our local market.  It was one of the largest listings in JSE history and really put the high quality of our country’s capital markets in the international spotlight.

The other one would be Choppies, a Botswana based retailer that listed in SA and raised capital for its African expansions strategy, thereby demonstrating the role that the JSE can play to grow intra-African trade and investment ties and positioning SA as a regional financial center.

 In your experience do first time founders usually get support from a leadership perspective when they list their companies? Especially considering the age of some startup founders, like Evan Spiegel of Snap who listed his company at only 27.

There is no question in my mind that first time founders gain enormous insight and experience when they open their companies up to public shareholders.  Firstly there is the requirement for a much higher level of transparency and disclosure which go way beyond what is done when companies are in private hands.

The need to explain strategy and performance to a broad range a stakeholders requires founders to be open, honest, to really understand their business and to publicly demonstrate the duty of care that he or she has.

For some founders, this comes naturally but for others, the support from the executive team, the outside accountants, legal advisors and others are critical to their success and being able and willing to accept that support is an important character trait.  There are plenty of examples of both successes and spectacular failures as far as this goes!

 Lastly, what is the best advice on money that you’ve ever received and who was it from?

I’m an old fashioned investor that believes in diversification and investing in real assets, as opposed to financial assets.  It’s typical of all that we learned in my generation.  Time will tell if it was good advice!

Bearer Share

What is a Bearer Share?

What is a Bearer Share? A carrier share is a value security completely claimed by whoever holds the physical stock endorsement, consequently the name “conveyor” share. The giving firm neither registers the proprietor of the stock nor tracks moves of possession; the organization scatters profits to carrier shares when a physical coupon is introduced to the firm. Since the offer isn’t enrolled to any position, moving the responsibility for stock includes just conveying the physical archive. Understanding Bearer Share Carrier shares come up short on the guideline and control of regular offers since possession is rarely recorded. Carrier shares are like conveyor bonds, which are fixed-salary protections having a place with the holders of physical authentications as opposed to enrolled proprietors. Key Takeaways Carrier shares are unregistered value protections claimed by the owner of the physical offer reports. The giving organization delivers out profits to proprietors of the physical coupons. The utilization of conveyor shares has dwindled overall since they cause expanded expenses and are helpful instruments to make sure about financing for fear mongering and other crimes. The Dwindling Issuance of Bearer Bonds Carrier shares are regularly worldwide protections, basic in Europe and South America — in spite of the fact that the utilization of conveyor partakes in these countries has dwindled as governments get serious about namelessness related criminal behavior. While a few purviews, for example, Panama, permit the utilization of carrier shares, they force reformatory duty retentions on profits gave to proprietors to demoralize their utilization.

Bearer Shares

Marshall Islands is the main nation on the planet where the offers can be utilized without issues or additional expenses. Numerous huge remote companies over the previous decade or so have additionally decided to change to full use of enrolled shares. Germany-based pharmaceutical mammoth Bayer AG, for instance, began to change over the entirety of its carrier offers to enrolled partakes in 2009, and in 2015, the United Kingdom abrogated the issuance of conveyor shares under the arrangements of the Small Business, Enterprise and Employment Act 2015. Switzerland, a purview known for its accentuation on mystery in banking exchanges, has additionally started the way toward changing over carrier shares into enlisted shareholdings. As of March 2019, the Swiss Federal Council has just started the procedure of interview to cancel conveyor partakes in the nation. In the United States, conveyor shares are for the most part an issue of state administration, and they are not customarily supported in numerous purviews’ corporate laws. Delaware turned into the main state in the U.S. to boycott by rule the offer of conveyor partakes in 2002, per the state’s site page on corporate law. Advantages of Using Bearer Shares The main unmistakable advantage to be picked up from utilizing conveyor shares is protection. The most elevated level of namelessness conceivable is kept up as for proprietorship in a partnership by a holder of carrier shares. In spite of the fact that the banks that handle the buys know the contact data of the individuals buying the offers, in certain wards, banks are under no legitimate commitment to uncover the character of the buyer. Banks may likewise get profit installments for the benefit of the investor and give proprietorship affirmation at investors’ comprehensive gatherings. In addition, buys can be made by a delegate, for example, a law office, of the genuine proprietor. Burdens and Risks of Bearer Shares The responsibility for shares regularly agrees with an expanded expense brought about from employing proficient portrayal and counsels to keep up the secrecy that conveyor shares give.

bearer-shares

Except if the carrier investor is a money related as well as legitimate master in these issues, dodging the numerous lawful and duty traps related with conveyor offers can be a troublesome test. Likewise, in a post-911 world in which the danger of fear based oppression lingers vigorously, some portion of the procedure to counter the danger is to remove the wellsprings of psychological militant subsidizing. Thusly, in an overall exertion to discourage psychological oppression financing, illegal tax avoidance and other unlawful loathsome corporate movement, numerous locales have ordered new enactment that places exceptionally close limitations on the utilization of carrier shares or, as referenced, have through and through abrogated their utilization. For instance, the Panama papers embarrassment broadly utilized carrier offers to disguise genuine responsibility for. This has brought about the hesitance of numerous banks and monetary establishments to open records or have any relationship with organizations or investors that bargain in carrier shares. The selection of locales and monetary organizations ready to bargain in carrier shares has limited fundamentally. Employments of Bearer Shares Carrier shares have some substantial uses, yet their innate drawbacks. Resource insurance is the most well-known motivation to utilize conveyor shares on account of the protection they give. For instance, people who would prefer not to chance their benefits being seized as a major aspect of a legitimate continuing, for example, a separation or an obligation suit may fall back on the utilization of carrier shares.

Business From Home

How To start a business From Home

With today’s internet technology, it’s not hard to start a business from home. The benefit of Home based business is that it’s not spend you so much money to start an own office for your business but you can still get good income and connect with millions of people from all over the world just by using a computer with internet connection from your home. If you intend to earn a good income by just working from your home and want to plan on starting a home based business. This article gives you some vital resources on how to start a business from home and steps by steps to start a business from home immediately without spending a large amount of money.

From Home

How To start a business From Home

All Resources & Steps You need to start a business From Home

1. Decide what kind of business you want to have when you start a business from home.

Before starting a business you always need to research your niche carefully. There are many difference niches to start a business at home but you need to choose what is between talents you have and things you enjoy. If you choose only things you enjoy that may not mean you will be good at it.

Resources:

Steps To Generate Niche Business Ideas
3 simple steps help you to generate Niche Business Ideas

Niche Keyword Research – The Right Approach
Easy guide to Learn How to Research Your Niche Market

Introduction to niche research and Clickbank
This video is a great look into how to go about doing your research with Clickbank

8 Step Blueprint For Doing Niche Research
Steps by steps to research niche to start business.

How to Research Your Business Idea
Your business idea may indeed be brilliant–or it may need some work. Here’s how to find out whether you’re ready for startup.

2. Know the competition in your niche.

The competition of a niche is sometimes very huge but that’s not mean you must stay away the niche you chose. You just consider for choosing a smaller niche. If you live in a smaller area, you have a better chance of landing that job.

Resources to learn how to research the completion in your niches:

How Niche Marketing Helped My Business Compete Against the Big Chains

Get to Know the Competition
A simple, 4-step competitive analysis will help you rise above the pack.

12 Ways to (Legally) Spy on Your Competitors to start business from home
Here are some time-tested methods that predate the Internet, as well as newer techniques to mine the wealth of information readily accessible online.

10 Tips on How to Research Your Competition for starting business from home
Keeping tabs on your competition is a great strategy for growing your business. Follow these tips, from fellow small business owners, on which tools are best and how to get started.

3. Understand the needs of your area.

Listen to what people say, what they want and what they need & meet them.

Resources:

Understanding People’s Needs
What kinds of needs do people have?, Why should the leader try to understand people’s needs?, How can a leader best understand people’s needs?

The analysis phase: Understanding what the customer wants

Understanding Customer Needs
The secret to start a successful business is to place your customers in the heart of the. An effective way to do this is to find out what they want and understand their needs.

4. Figure out your profits before starting a business.

Profits are all things you want so that you need to figure out before your business is started. To do this you must ask yourself two questions: How much will people pay for your services? Can you make a good income off this?.

Work at home

5. Check into legal barriers before starting your business.

Different countries/areas have different rules and regulations for home based businesses, and you need to check into those at your town’s city hall before investing much time and money in your business. Otherwise, you may get banned in the future.

6. Create a business plan on starting a business from home.

Think of what things you will do for your business & what time you can do such things. It’s that pretty hard to figure out a business plan but it’s very useful for you in the future.

VC Fund

Dividends and Preferences: How to Invest in a VC Fund

So you always wanted to be a partner in a venture capital fund? Well, here’s how it works. The following is Part 3 of my five-part series on how to invest in early stage technology companies as an angel investor or through an investment in a venture capital fund. Privately held companies in emerging technology sectors–such as nanotech, clean tech, biotech, info tech and new media–frequently have exciting upside potential that can only be fully harnessed by investing in them when they’re in their infancy. In Part 1, I gave a general overview of the playing field and in Part 2, I examined the stages of an emerging growth company’s lifecycle and the types of investment that it hopes to obtain at each relevant stage. Here, I’m going to explain how you can invest as a limited partner in a venture capital fund. When you invest in a venture capital fund, your role in the early stage company will be completely “hands off.” You’re investing in the vision and/or track record of the venture capitalist and will rely on the venture capitalist to make and manage your investment decisions. It’s crucial that you match your investment goals with venture capitalists sharing similar goals. For example, an investor that wants to maximize exposure to nanotech and its commercialization would not want to invest with a generalist venture capitalist or a venture capitalist focused on the Web 2.0, SaaS or cloud computing sectors. Before you invest in a venture capital fund, there are several things to consider which I detail below the fold.

VC Fund Structure

1. An investment in a limited partnership in a venture capital fund is long term and illiquid. Long term in this case typically means it will be 10 years before all of the fund’s investments will be liquidated, sometimes even longer. Money will only be distributed to you as the venture capital fund liquidates these individual investments. There’s no easy way for you to get your money back and there’s typically no market for you to sell your limited partnership interest.

2. You’ll be required to qualify as an “accredited investor.” For an individual, this means you must either have a net worth (or joint net worth with your spouse) in excess of $1,000,000; or have income exceeding $200,000 in each of the two most recent years; or joint income with your spouse exceeding $300,000 for those years; and a reasonable expectation of the same income level in the current year. Some funds have even higher net worth thresholds. If you’re unable to meet the fund’s investment criteria, they won’t accept your investment.

3. The fund will require you to make a sizable upfront investment coupled with a substantial commitment for future investment. Most funds require, at a minimum, a $100,000 up-front investment with a minimum commitment in the $500,000 to $1,000,000 range. These numbers vary greatly depending on the size of the fund and the experience of the venture capitalist, however, they very rarely fall below these thresholds. The remaining bulk of your commitment will be tapped by the venture capital fund over a period of four to six years known as the “drawdown” period.

4. Investing in emerging technology companies is exceptionally risky and there’s a strong possibility that a number of the venture capital fund’s investments will be worthless and that none of these investments will see significant returns. The risk of losing all of your investment is higher when investing in a venture capital fund than when investing in public equities. However, it’s probably lower than if you invest directly in companies as an angel or angel syndicate. The reason for this is twofold: You’ll have exposure to a larger number of potential and actual investments through a venture capital fund; and the venture capitalists are theoretically better at identifying emerging trends and companies that are good bets than angels or angel syndicates. Now, if you meet these criteria, can afford to have your capital locked in for a long period of time, and don’t mind the risk of substantial losses, the potential benefits are substantial–annual returns can often reach up to 30 percent for successful venture capital funds. If you decide to pursue investing in a VC fund, you’ll be given a private placement memorandum that describes the fund’s objectives, the experience of the venture capitalists and the terms of your investment. It also includes a comprehensive “risk factors” outline that provides extensive detail on the various risks that you’ll be assuming. You’re also given the subscription agreement you must complete to make your investment and a copy of the limited partnership agreement that will govern the legal terms of the fund. Familiarize yourself with these legal terms and consult with your attorney and other professional advisors before you pull the trigger. Bear in mind, the terms of the limited partnership agreement are typically not negotiable. This makes a certain amount of sense since the venture capitalist fund will usually have 20 to 30 different investors and may talk to hundreds of potential investors. These investors commit at different times and commit different amounts of money, so it would be extremely time-consuming and arduous to negotiate separately with all of them. Now, if you were going to commit for a substantial percentage to the fund, then you’ll have more latitude on terms and conditions. However, the typical individual investor is investing a relatively small amount when compared to the public pension funds and other large institutions investing and, consequently, he/she has relatively little bargaining power. Fortunately, the terms of venture capital funds don’t vary much from “market” rates that have evolved over the last 20 to 30 years. This can make it easier for you because you can simply check to see if the terms you’re being offered are in the market range. A few of the most common economic terms are the management fee, the carry, and reinvestment rights. Typically, governance rights for limited partners in venture capital funds are minimal. The management fee is the lifeblood of a venture capitalist. This is the money that they live off of from day to day. Usually, the management fee will be a percentage of committed capital. That is, the total capital that everyone has committed to the fund, not the capital the fund has actually drawn down. Traditionally, this fee has been 2 percent but anything from 1.5 to 2.5 percent is common, depending upon the size of the fund. With a larger fund, the percentage may be lower and vice versa for a smaller fund. This fee is taken annually and can add up relatively quickly. For example, if the fee is 2 percent, on a $200,000,000 venture capital fund, the venture capitalists collect $4,000,000 a year for 10 years-–or $40,000,000. And this is completely independent of whether they make good investments. Occasionally, the management fee will be capped at actual budgeted expenses or will scale downwards to reflect the fact that more work is required during the funds early years; however, a flat percentage is the norm. The carry is the second form of compensation for venture capitalists. However, unlike the management fee, the carry is directly tied to success. The carry is the percentage of the fund’s profits that the venture capitalist gets to keep, typically 20 percent. Often, the investors are guaranteed some ordinary rate of return on their investment (eg, 6 percent or 8 percent) that the fund must first deliver before the carry will kick in. However, the latter distributions will be tiered up so that the venture capitalist ends up with 20 percent of all profits. Occasionally, there may be some deviation from the 20 percent figure, but this is rare. One thing to look for is whether the fund looks at the profits of the fund as a whole or on the profits from each individual investment. If the former, there’s often a “clawback,” so that if an early portfolio company has a home run but all the rest are losers, you’ll be able to take back the excess profits that are distributed to the venture capitalist. Reinvestment rights are the right of your venture capitalist to take profits from early successes and reinvest them into new investments rather than pay them out to you and the other limited partners. This may be a good thing for you because it means you have more capital at work and, in a sense, this is free to you since the management fee doesn’t apply to reinvested money. On the other hand, it may be a good idea to take some money off the table. Some form of reinvestment right, at least for the first few years, is relatively common. Just make sure you understand what it means to you. The next part of this series will look in detail at angel investing and its important characteristics, including typical legal and business terms.

personal budget

5 reasons why a personal budget fails!

If in a previous article I have talked about the 10 reasons you should use a personal budget, now we are talking about the reasons a personal budget fails to reach its purpose.

You know very well that a budget helps you plan from a financial perspective any activity you have and it gives you an objective image on your personal finances.

Most of the times, after we start using a personal budget, we end up failing to take it into consideration and it stops coinciding with the financial activities we make.

I have to tell you ever since the beginning that it is not easy to make a personal budget. The most difficult part is to stick to the plan.

Personal budget is a plan you make at the beginning of the month and you have to comply with it without any deviation. Most of the times, we see at the end of the month that we have failed to take it into consideration and that we have spent more.

Personal-budget

Before analyzing your own personal budget, let’s see what the main reasons for its failure are:

5 reasons why a personal budget fails

1. You have very high expectations!

Each time someone makes a personal budget, he/she has high expectations from it. It takes a while until you achieve your own personal budget.

At the beginning, as you are not used to it, you will see that the planned budget does not coincide with the achieved one and differences between them occur.

Do not get scared and do not lose motivation. It is normal!

A good budget is not created over night, or in the second night.

You end up having a budget after at least 6 months. After 6 months, while you were focusing a lot on your expenses and your income, and made a habit out of it, you can say that your budget is good.

Until then, take your time, do not lose motivation and give yourself as much time as necessary to plan your budget each month.

2. Personal budget is not at hand!

We are human. Humans generally forget. We are forgetting small things happening to us daily.

This can be a problem when it comes to organizing a personal budget.

If you are a forgetful person, I recommend updating your personal budget daily.

Give yourself 5-10 minutes each evening and update your budget. See what you have spent that day and how much money for spending you have left for the next days.

3. Maybe you are not using a budget model which is in your advantage

There are many budget models you can use. Some of them are online, some even directly on your phone, others in Excel.

I, for one, use a budget model in Excel, which I update each time I go to the computer. I am spending quite a lot of time at the computer and it helps me be in contact with it.

HERE you can find the budget model I use. It is in Excel and easy to use.

I recommend it with the utmost trust.

4. You are forgetting about the expenses for fun!

When we are planning our budget we are tempted to write absolutely all expenses for invoices, food, but we are forgetting the expenses for fun.

We are thinking that we will not have that much fun in that month and we write a small amount.

The reality is completely different. In reality, you go out each week (sometimes daily) and you are spending more than you have set.

It is crazy if you do not plan the expenses with fun. It is a very important category where the amounts can be very high if you are a “party person”.

5. You forget about the “Unexpected or extraordinary expenses” category

You have many expenses in a month. Many invoices, much shopping to do, you have many places to go to.

Once with these “many”, you will end up finding it very difficult to foresee them. Then, there are the extraordinary expenses, which you had no way to foresee, such as: something in your car breaks, the TV/phone/computer etc. breaks.

All these are expenses that can affect your budget.

Best solution: Add 10% of the total amount in the “Unexpected or extraordinary expenses” category.

This category will help you get off a lot of trouble without affecting your financial planning.

These are the most important 5 reasons why a personal budget fails. Make sure you are not breaking them and always take into consideration the 10 reasons you should use a personal budget.

In the end, I am waiting your opinion about why a personal budget fails.

Why do you think people cannot comply with their personal budget?

debt

41 Techniques That Can Get You Out of Debts. How to Get Rid of Debts!

I think that when you end up having debts is one of the most difficult moments of our life. We end up depending on multiple persons, persons depending on us and the stress grows limitless. How to get rid of debts? is the most important question…

Each day we think only about this and this is not helpful, in all situations, for getting rid of these debts.

Maybe the debt cannot be settled in a very short amount of time, but if you are willing to make more sacrifices than you usually do, your debt will be gone in a quite short time.

unsecured-debt

I will show you below a series 41 practical ways you can get rid of debts:

41 techniques that can get you out of debts

  1. Choose the right attitude. Do not let negative thoughts overtake your mind. Think positive.
  2. Make a list with all your debts (including bank credits, interests etc).
  3. Do not add more debts. Those you have are enough. Your task is much too difficult as it is.
  4. Find a second or a third job. Any additional income helps you pay your debt faster.
  5. Remove any other passive expenses you may have (the fully comprehensive car insurance must go, the savings for additional pension must be removed  etc)
  6. Analyze your assets. See what you need and what you do not need. Sell what you do not need!
  7. Think if you are using your cable TV or your internet at maximum level. If not, cancel them or have a cheaper subscription.
  8. Pay your smaller debts first. It is a psychological game called the Debts snowball.
  9. Try using cash. Do not use the card, because you lose a certain amount of money for each transaction. Give up cards for a while!
  10. Pay as much as possible from your debts each month! Do everything possible not to get rid of money quickly. The quicker, the lower the interest.
  11. If you receive a bonus/raise, use it to pay your debt.
  12. Make money out of your hobby. See what you like doing and try to make money out of that.
  13. Develop your financial management part. Use a personal budget to manage your money better.
  14. Make money out of affiliate marketing. Try selling goods online for a fee.
  15. Make a personal blog and try to make money out of it. If you are involved enough, you can end up making enough money out of advertisements or affiliate sales.
  16. Never miss a debt payment. Each missed deadline will bring penalties, namely amounts added to the debt.
  17. Evaluate your consumer behavior. If necessary, reduce consumption!
  18. Use a calculator or even your mobile phone when you go shopping so that you know when you have reached your limit. Thus, there are no surprises when you get to the cash register.
  19. Read books about financial education. They will help you figure out how to earn more, how to manage your money better and how to spend them “wisely”.
  20. Set your own income objectives. Tell them to a close friend or a family member, so that your responsibility grows. Usually, if you tell your objectives to people around you, it will be more difficult to give up on them.
  21. Celebrate any victory you had on settling your debts. It will help you motivate yourself more to get rid of debts. (Not by drinking. You can buy something you needed for a long time).
  22. Never lose heart. Always fight as if it is the last thing you do. Successes will not be late.
  23. Follow financial blogs. Keep an eye on the best blogs of this area and find out how others managed to earn more money.
  24. Stop eating out. This costs you more. Eating at home something you made is cheaper and healthier.
  25. Reduce your costs for going out. Try to watch movies at home or, when you go out, buy cheaper drinks. This does not need too many costs.
  26. Analyse your closet. Try to use the clothes you have and stop buying others. Buy clothes only if it is really necessary.
  27. Get rid of the smartphone. It costs quite a lot (electricity, internet etc). With it, you can get rid of the internet subscription. (only if it is necessary ? ) For the moment, we can live without it.
  28. Do not buy expensive phones. Buy a phone for talking and a minimum set of activities. They are more efficient.
  29. Start a small business, in your free time. Ex: painting, pictures, babysitter, web design etc.
  30. Always ask your creditors how you can reduce the interest. Reducing this interest to the lowest amount leads to the reduction of the owed amount.
  31. Rent a room. If you are staying in an apartment, try living only in a room for a while, and the other room you can rent to other people.
  32. If you live in a rented apartment, try moving in the cheapest apartment or even in a studio. The utility expenses are much lower for a studio.
  33. Develop yourself a businessman mind. Buy things cheaper and sell them on olx.ro or on other websites with a mark-up.
  34. If you know a subject very well (ex. Maths, Romanian, Geography etc), give private lessons. You can earn somewhere around 30 lei for 2 hours.
  35. If you have a photo camera, take some artistic photos and sell them on ShutterStock.com. You earn money for every sale you make.
  36. Stay more hours at work if they are paid extra.
  37. Follow store sales. Buy products only if they are on sale.
  38. Take only the money you need out of your card at the beginning of the week. Forget it at home ?
  39. Participate at various contests. You never know when luck might show up and you win some money.
  40. If you have too high debts, uses refinancing. Interests can be lower than those you have now.
  41. Give up expensive vacations and parties. Try to stay at home and have fun with as least money as possible.

These were the ideas I had. Some are applicable for you, others are not. Try to make a list of 10-15 which might fit you. They are not all generally valid.

I wish this list continues up to 50 or 100, but I need your help for this.

If you know other useful and practical ways to help us get rid of debts, you can leave them in a comment below and I will add them to this list.

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