Preparing Your Business for Sale
These days I hear from many entrepreneurs and owners of family businesses who are thinking about selling their businesses. Some are selling due to health issues. Some have to sell as the owner has passed away. Many business owners tell me that they are thinking of selling because running that business is just not any fun anymore. Others are ready to retire and live the good life.One thing that is important to remember is when the economy is like it has been in the last several years, that is the time to buy, as there are deals out there, albeit the deals have issues with them. Conversely, if you think that you will get top dollar when you sell during this period, be prepared to be disappointed, as there are a lot of people looking for the deal of the century.Another thing to consider is every business for sale has to prepare itself for sale. Prior to placing your home on the market, you may paint the house, change the carpeting, remodel the kitchen, refresh the landscaping, to name a few items. Once those are done, then you would be contacting several brokers to interview them to determine a market plan and price to place on the home.In a similar fashion, there are items to take care of that take time prior to placing the business on the market. First, one of the things that you are selling is your depth of people who work for your company. If the buyer perceives that you are the one that they are “buying” in the purchase, you will receive less out of the purchase and you will probably be expected to work at the company for several years after the sale. If you do have management other than yourself, you may wish to prepare a multi-year employment contract for your key people so that they will still be with the company should it sell during that time frame.Second, you need to get your financial house in order. This means that if you need to sell off or shut down a division which is unprofitable and which is holding back earnings, that may be what you need to do in order to maximize your return from the sale of the entire company. This also means that you need to go over your financial reports with your accountant to clean up any issues that your accountants may have had with your financial statements. Collect those accounts receivable. Keep your financial ratios better than or at least in line with other businesses in your industry. Keep your financial house disciplined.Third, consider what assets to sell. For instance, if your business has real estate that is being used by your core business, consider having that asset in its own separate limited liability company and doing a separate lease at market rental value between the business and the LLC, which will provide you with returns for years to come. Retain your cash.Fourth, clean up and organize your physical plant. If the physical plant or offices are organized and clean, it will reflect well on a potential buyer. This should be part of your normal routine anyway, whether you sell your core business or not.As you can tell, most of the preparation work that you may do up front, prior to your placing the business with a broker or finding a buyer yourself, makes good business sense. Whether you sell or not, you need to run your business in a way that makes the business more profitable, efficient and competitive. Then, especially after this current market passes, you will be ready to find a buyer who will pay you what your business is really worth.
How Can an Automotive Business Benefit From Online Display Advertisements?
Display advertisement is considered as one of the most successful advertising strategy on Internet. According to the latest IAB report, online display advertising market represented 37% ($5.5 billion) of the total online advertising market during the first six months of 2011. Among the various forms of online display ads, banner ads constituted for majority of revenue ($3.414 billion) representing 23% of the market.Different forms of online display advertisingOnline display advertising is a form of web marketing where promotional messages in the form of text, logos, audio, video or pictures in static or animated form are displayed on the relevant websites or search engine result pages. These online display advertisements are of 3 forms – banner ads, pop up ads and text ads.Banner ads are the most common types of ads and are similar to the traditional banners, highlighting the business name and giving a small description of the business.Pop-up ads are similar to banner ads in their design, but their placement is different. These ads are not steadily placed and pop-up suddenly, mainly during navigating from one content page to other.Text ads are limited only to text content. They can be easily downloaded and they can be made effective using right keywords.Online display advertising is very helpful for automotive businesses as they are product oriented and this marketing strategy best serves the purpose of quickly engaging the customers. Below are few benefits that assure success of your auto business through this advertising strategy.Attractive display of auto models catches the attention immediately: Display advertising is a perfect strategy to promote your automotive products. A well designed display ad with graphic images (static or animated) of the vehicles and their description in the audio/video form grabs the attention of the viewer immediately. In short, display ads can act as a miniature version of your virtual or traditional showroom showcasing your auto models.Targets the audiences searching for automobiles: Display advertising is targeted and thus, effective in generating leads and creating conversions for your business. An automotive business can target its audience based on behavior, geography and context.In behavioral targeting, your auto business ads appear if the user is searching for auto products or content. Geographical targeting is the best way to make business, as it enables your ads to be displayed when a user browses from your local area. And contextual targeting is a way to display your ads in the websites which are in any way related to auto business (like auto spares retailer, auto new websites, auto forums, etc.). By targeting the right audience you can eliminate wasted impressions.Highly interactive marketing strategy: Display ads are highly interactive and entertaining ways of advertising. Especially, for an automotive business, as it needs an interesting and knowledgeable illustration of the auto models to attract customers. You can be as creative as possible in explaining your automotive business in the limited web space available. Remember, an effective display ad creates brand awareness and affinity for your brand even if the viewer does not click your ad.Can easily track the success of business strategy: Online display advertising gives immediate results. The click through rates and conversions rates help in tracking the effectiveness of a display ad. These ads can be adjusted, improved and replaced immediately based on their performance. Regular tracking of the progress of various ads helps you save time and money spent on the ad and assures success for your marketing strategy.In addition, display advertisements are cost-effective. You can purchase these ads through pay per click or cost per impression. Based on the performance of the ad in generating traffic and ROI, you can increase or decrease the spending on that ad.
Crypto Currency Vs Fiat Currency
Crypto currency vs. Fiat currency
Are you aware of the fiat currencies and the crypto currencies? They both are currencies in one form or the other and are open for public use across the world. But they are both different and distinct in their own ways. There is always one group that favors the use of cryptos, while the other has a soft corner for the fiat currencies.
In cashless society- crypto money play a huge role
If you have a look at the market of the 1970s and 1980s, you will find that the cash played the dominant role. But, with the change in the technology, electronic transactions have become the usual norm. Today, more and more people are influenced in becoming the cashless society. With the progress towards the cashless society, cryptocurrencies have a big role to play.
Crypto currency and fiat currency are always at loggerheads
Cryptocurrency and fiat currency are popular types of digital currency, especially when it is about an online transaction. They both are currencies currently in use in the market but have some differences in them. There is a hell lot of hypes that you will hear on a daily basis comparing the crypto money and the fiat money. This article will highlight the difference between the two in a more comprehensive and clear manner.
Differentiating in what the currencies stand for
Before going for the difference between the two, you must understand what do they stand for and how are they are defined.
The fiat currency is a legal tender that has the support of the central government, and it operates in the physical form. For instance, US dollars, British Pounds, Euro etc. On the other hand, the crypto currency is a non-legal tender, and doesn’t have any backup from the central government or bank.
Hence, the difference between crypto currency and fiat currency is noted as follows:
• Crypto-currencies are decentralized and global in nature. There are no one entity or government that controls the currency with their laws and regulations. The Fiat currency is centralized, under the control of the laws and regulations of the banks and government.
• Crypto-currencies have their existence only in the digital domain. On the other hand, you will find that the fiat currencies have a tangible and physical existence.
• There is a limited supply of crypto-currencies with a maximum set of them getting supplied in the market. Whereas, the fiat money has an unlimited supply as the government and bank are entitled to produce coins and paper money whenever the situation is required.
• The Bitcoin and other crypto type currencies are created by the computers, while the fiat currencies are issued by the local government and the banks.
• Cryptocurrencies are presented as the public and private code pieces. On the other hand, the fiat currencies are presented in the form of coins and paper money.
• The value of the crypto currencies is not recognized by the supply and demand of the market. Whereas, the fiat currency value is determined by the market regulations of supply and demand.
The different types of crypto and fiat currencies
In the last one decade, the popularity of crypto type currencies has emerged as a huge success. It was in 2009, when Bitcoin was first introduced, and years after several other types of crypto currencies have emerged. Starting from Litecoin. Dogecoin, Ripple to the Dcash and Zcash, there is a plethora of them. On the other hand, the fiat currency has a rich and ancient roots, with the Great British Pound, that dates back to 775 AD. It is considered as the oldest currency in the world that is still in use.
The differences in the anonymity between the two currencies
When you are using the fiat currencies, you need to undergo a user identification or verification process. You are asked to upload a recent picture of yourself and some of the required documents to be issued as per the public authorities. You don’t need to undergo any of the required processes with the crypto currencies. Though your personal information and confidential details don’t get public, but all your transactions are recorded and tracked in both the fiat and the crypto currencies.
Fiat currency vs crypto currency: transparency level
• The transparency level with the crypto type currencies are considered to be more. This is because the revenue streams are displayed in a public chain. Everyone can witness their own and others’ transactions.
• The fiat or govt. currencies are not transparent, as there are not public chains to see the revenue streams of the people.
A comparative historical roots
If you compare the crypto money with that of its counterpart, fiat or government currency, you will find that their existence and creation brings the difference. The Fiat or government currency, dates back its existence as early as 775 AD with the introduction of the Great British Pound. This is why fiat type currency is easily accepted by the people all over.
On the other hand, the crypto coin was perhaps first introduced only a decade ago, with the introduction of Bitcoin in 2009. The challenge that the Bitcoin and other crypto currencies face is catching up with the immense popularity and increasing fan base of the fiat currency. Crypto currency, is no doubt gaining importance and popularity in the economic market, but it has still not been accepted widely in the society as the fiat currency.
A comparative history of the two currencies:
• It was in the 11th century, when the Chinese Song dynasty was perhaps the first one to issue the paper money. It was not allowed to exchange with valuables like gold and silver or silk.
• There were Tally sticks that were introduced as a fiat or government currency. 1100 Tally sticks were introduced as a combat for the shortages in gold.
• 1971, was the year, when the fiat currency received a worldwide recognition. President Nixon introduced it in order to eliminate the dollar pegging system to gold.
• It was in 1998, when the idea of an anonymous electronic cash system emerged by Wei Dai. Bitgold-the very first crypto currency was created by Nick Szabo, but it didn’t receive as much attention as Bitcoin.
• In 2009, Bitcoin was introduced in the market, that became the first crypto currency that was accepted across the globe. In 2011 and after, a series of several other crypto currencies were introduced. Some of the popular ones include, Litecoin, Dogecoin, Ethereum, Ripple, Zcash, Dash and so on.
The traits of both the currencies
The potential of the crypto type currencies and fiat currencies, accessing their traits is important. You will find that in some of the criteria, Bitcoin and other crypto currency is superior than the fiat or government currency, and in some cases, the latter surpasses. It is absolutely your call to choose the type of currency (crypto type currency or fiat type currency) based on your personal needs and requirements.
Let us compare their traits with respect to certain factors.
• Both the crypto coins and fiat type currencies are interchangeable in nature.
• As per the portability is concerned both the currencies secure more or less the same position.
• With respect to the non consumable criteria, crypto currency and fiat type currency have the equal status.
• Crypto type currencies have high durability as compared to the fiat-currencies that have moderate level of durability.
• Both the crypto or virtual currencies and the fiat or government currencies ensure secure and safeguarded transactions and exchange.
• Crypto or digital currencies are highly divisible in nature. On the other hand, the fiat type currencies are moderately divisible.
• In terms of the transaction process, the crypto currencies are easy and hassle free. Whereas, on the other hand, the traction process associated with the fiat currencies are easy, but not like the cryptos.
• The crypto based currencies are decentralized and global in nature, unlike the fiat currencies that are centralized and functions under the laws and regulations of the government.
• The crypto based currencies have high scarcity, where as, the fiat currencies are unlimited as the government can issue coins and paper money whenever there is a need.
• The crypto based currencies are based on mathematical algorithms, and are programmable. The fiat currencies are not at all programmable.
• The fiat currencies are sovereign in nature, while the crypto currencies are not.
The process of the functioning of the currencies
You can find the significant differences between the crypto or digital currencies and the fiat currencies with the way they both operate and the transaction process that take place. They are contrasting in nature. The transfer of money using the Bitcoin is very quick, and you absolutely don’t need any third party association.
On the other hand, if you are involved with the money exchange using Fiat type currency, a mobile wallet is in use. You can exchange an amount of e-money that gets transferred into the equal e-value amount. Both the fiat and the crypto currencies enable you to purchase everything that you desire. But the processes involved are absolutely distinct from each other.
Depending on the things you purchase, you will find that one currency form is better than the other. This is absolutely your choice.
Is Bitcoin, a crypto currency better than the fiat-currency?
The long term benefits and the capability of the Bitcoins is still not established. But it has been predicted by the crypto currency gurus and experts, that they will go a long way, especially revolutionizing the way the online transactions are done. In the current market, the Bitcoin is mainly included in the online casinos and the gambling, but it is not limited to it.
Furthermore, when you compare the fiat currencies, the Bitcoin allows you to seize the power and authority from the banks and the government since it is not controlled. The cryptography based currency has the capability to create or come up with the free market capitals. Fiat currencies are affected by the inflation and the changes in the market, unlike the crypto based currencies. Such aspects make individuals believe that cryptograph based currencies will soon take over the mainstream currencies and bring a transformation in the way the money is used.
Why is Bitcoins considered to be a better aspect than the fiat type currencies?
• Bitcoin gives you the opportunity to re-create a free market capitalism.
• The power of controlling the money is absolutely with the individuals, and not with the banks like the fiat type currencies.
• When there is an inflation, the Bitcoin is not affected. But the Fiat type currency will be easier to lose and get affected by it.
• The Bitcoin currency is easy easier to exchange and transfer as compared to the fiat or government currencies.
• The transaction fees involved with the Bitcoin are way cheaper and easily affordable.
Crypto currencies seem to be a favorable option among the people
The fiat type currencies are the centralized and legal way of exchanging money. But, the crypto currencies have acquired immense popularity in the past few years. There will never be anyone who would act as a middle man, like the case with the banks. Moreover, the cryptos are way cheaper and less expensive that the conventional fiat currencies.
Send money anywhere directly without waiting for the bank’s approval
You can send money to anyone in the world directly, and it is super fast. The money gets cleared within a few minutes time. You don’t have to wait for the traditional clearing and verification processes of the banking systems, which might take up to several days to get a clearance. Since it is decentralized and doesn’t come under the law and regulations of the government, nobody has any power to do anything with your account.
The blockchain technology has a very big role to play
Thanks to the crypto currencies, that gives us the power and the authority to become our very own bank, and take control over our finances. It is because of the blockchain technology that offers a higher level of sophistication while dealing with the finances. In fact, there are some mainstream financial industries that have started incorporating the idea of the technology.