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Business

Is Bitcoin Taking Over the Business World?

by Matthias
written by Matthias

Bitcoin has registered immense success over time. Its prices shoot up to 750% in a year so it would not be too early to say it is taking over business. However, recent reports are worrying. With a recent big crash, you may be uncertain whether to invest bitcoin. Reports from China show that bitcoin prices plummet by 30% and the uncertainty that ensues should make you reconsider your choice to invest in bitcoin.

Bitcoin’s Firm Foot on Business and why you should not invest in it.

The infatuation with bitcoin is major. As a Cryptocurrency its doing better than real time currency. Experts however say it is an investment Armageddon. It can plummet anytime soon and the below reasons peak into bitcoin. Despite its firm foot, it lacks in:

  1. Bitcoin has unregulated space

Bitcoin’s lack of regulation by either government or banks is the red flag that should warn you off. In the case of a grievance, you will have no authority to address it to. When you are ripped off after you have bought a commodity suing your credit card, you will be compensated. On the other hand, if you are ripped off by a bitcoin transaction, you have no grounds to ask for compensation.

You should not invest where there is unregulated schemes. Therein lies pain if you lose your investment yet you cannot ask to be compensated.

  1. The issue of bitcoin’s legality

The legality of bitcoin is one major hurdle, most especially for Indian investors. Even though bitcoin has not been declared legal, it is recognized by the Reserve Bank of India and other Indian authorities as currency. This was however cleared in a December 2013 press release.

 

In the press release, traders of bitcoin and other virtual currencies were warned about potential operational, financial, customer protection, legal and security related risks. If this alone is not enough to keep you from investing in bitcoin, the latest February 2017 press release ought to.

The press release stated The Regulator had not licensed companies to trade in visual or digital currencies. The Reserve Bank of India added that if you deal with bitcoin it would be at your own peril.

  1. Ponzi schemes abound

You should be aware of the high risk of fraud. Fraudsters have banked a lot on the misinformation and lack of clarity that has surrounded bitcoin and Cryptocurrencies. Weigh your options keenly if you see a promise of ‘high returns’. It might be a Ponzi scheme.

Watch out for those companies that promise to double your initial investments. Miscreants will use the growing fame surrounding Cryptocurrencies to lure you into Ponzi schemes. If you want to invest, do so in the right state of mind because bitcoins are highly volatile. Promises of great returns after a short time are therefore highly unlikely.

  1. Prone to illegal activity

Extortionists and even terrorists can utilize the Cryptocurrency space as advantage over your investment in bitcoin. Illegal activities might just be at the end of your transaction without your knowledge. Cybercriminals can lure you and take advantage of your investment and you have no way to ask for compensation because they know how to cover their tracks.

Cybercriminals mask their addresses and even the government is not able to snuff them out. On one occasion, a bitcoin trader had his computer locked by hackers. They demanded from him payment in 3 bitcoins for his computer to be unlocked. He made the payment but the hackers did not keep their end of the bargain.

Hacking incidents and cybercrime make it impossible to track these legal activities. This stands as a danger in the Cryptocurrency space. Bitcoin has an unregulated scheme and this will expose you to unforeseen risks such as anti-money laundering and financing terrorism laws.

  1. Extreme volatility

Investing in Bitcoin is a high-risk venture because its prices are volatile. Bitcoin investment has been met with a fair share of skepticism. Analysts have their reservations about bitcoin because it lacks an ecosystem that will allow them study its investment. Bitcoin lacks enough ecosystem making it impossible for analysts to study is an investment.

What the bitcoin ecosystem lacks is enough individuals, organizations, entrepreneurship support organizations and top performing startups. These elements make bitcoin give bitcoin a ‘lesser’ ecosystem. You should invest if you have imperfect information. Bitcoin prices are not regulated and if you join the bandwagon, prices climb even higher.

Being lured by bitcoin’s high prices will burst your bubble of expectation. When this happens, it will cause widespread loss and your initial investment will not be recovered.

  1. Neither currency, nor commodity

Bitcoin lacks clarity on its origin. The proponents of bitcoin have unlike ‘fiat currencies’ failed to call bitcoin a commodity. This corrupts even the thought that bitcoin has been mined using complex mathematical formulae. Bitcoin does not fall in the currency category. Before you invest in it, you should know that any government does not control it.

The act of bitcoin declaring itself as democratic makes it risky for you considering investing in. Ensure that your investment is at least backed up by a tangible asset or at least by sheer demand.

  1. If you are not familiar with bitcoin, do not invest

Take it from global bankers and experts who have warned against investing in bitcoin. They are of the opinion that Cryptocurrencies are but a bubble waiting to burst. You may be caught up in the quagmire that bankers and retail investors are caught up in. Retail investors have used the Citgroup CEO Virkam Pandit as leverage because he invests in bitcoin.

This should not make you invest if you have no knowledge prior to bitcoin. You should follow Warren Buffet’s take of not investing in something that you do not understand. If you are not convinced yet, if bankers ask you to keep away from bitcoin because they do not understand bitcoin it is most likely that retail investors have no understanding of the phenomenon as well.

Conclusion

Bitcoin is a lucrative form of Cryptocurrency business. What lags it from ‘taking over the business world’ are the above reasons. It is an unregulated scheme and you should only trust your investment with an avenue that has put in place enough measures to secure your interests. Still it is the fad on the business street, there is no denying that.

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Business

Successful Businesses from Shark Tank

by Matthias
written by Matthias

Usually, you may have an original business idea but you need funding. This has been the case for many of the contestants you have watched in the debut of all the Shark Tank episodes. These entrepreneurs who make the cut have a chance of showcasing their idea to a large viewing audience; their potential customers.

The chosen few whose ideas are outstanding land a deal with one or more of the show’s investors. This pedestal gives the select companies the chance to scale and in some cases, they end up becoming a nationally recognized brand. This review samples out some of the most successful stories on the show, some are the shark’s own favorites.

Successful Businesses from Shark Tank

  1. Lollacup

This debut was a BPA children’s drinking cup with a flexible straw which allowed children to drink easily. For 40% of the phthalate-free children cup company’s equity, Robert Herjavec and Mark Cuban invested $100,000. It has since made a gross sales of over $1,000,000 since its debut on the Shark Tank.

  1. Squatty Potty

Squatty Potty’s debut on Shark Tank was no surprise. This personal care company was already well established and renowned for manufacturing a toilet stool that enhanced easier bowel movements.  For 10% of the company’s equity O’Leary and Lori invested $350,000. The Business Insider was shocked at the 24hours that followed after the two sharks bit.

Squatty Potty made $1 in sales within 24hours. Its gross revenue in 2015 was $19 million and was expected to shoot up further to $30 million.

  1. Ten Thirty-One Productions

Before their debut on Shark Tank, the Hinnants made about $1 million in sales. When Cuban decided to invest $2 million for 20% of Melissa Carbone’s Ten Thirt6y One Productions, a live horror-entertainment company in season 5, the company is now expecting $6.5 million in gross revenue.

This boost in sales was boosted by an appearance in Cosmopolitan magazine. The company has grown and one thing that has stood out is the company’s philanthropic nature. It has used its profits in India to house a total of 100 kids. Last year alone the company grossed $3 million in revenue and although the shark disclosed the company’s exact figure, he hinted that it makes a half a million dollars in annual revenue.

  1. Breathometer

Breathometer is a portable breathalyzer that works with a smartphone and mad its first appearance on Shark Tank’s 5th episode. For a 30% deal of their company’s equity, Kevin O’Leary, Daymond John, Herjavec and Lory Greiner got on board with an investment of $650,000. In partnership with Cleveland Clinic, Yim, the company CEO secured an additional $6.5 million in funding. This partnership helped Yim develop a more accurate and more portable main product. This was all in addition to a product that could track both oral health and hydration levels.

In reference to what Yim told Inc., the Breathometer was going to make $20 million gross revenue in 2015 which was double what it made last year.

  1. Bubba’s-Q Boneless Ribs

A former pro football player from Ohio came to sell the sharks his scrumptious baby back ribs which can be cooked in a microwave in 2 minutes. This went down in 2015 and John invested in the idea for 30% equity, for $30,000. When he spoke to the Business Insider, John told of his amusement because he had not expected to make the most out of a rib business.

John not only helped Baker license rights to his company but also helped him to secure a deal with a large-scale food processing plant. The shark said that he can make Bubba’s-Q become a national brand with a sterling $200 million in lifetime sales.

  1. Tipsy Elves

A man from Lubbock came to the sharks with his colorful, magnetic light strands were a remarkable solution to one of the holiday’s biggest headaches. It was only one of the sharks, Robert Herjavec who placed his money on Evan Mendelsohn and Nick Morton’s ugly Christmas sweater.

This was in season 4 and most viewers thought that Robert’s investment of $100,000 for 10% equity was a lost cause because the sweaters were a fleeting fad; Christmas comes only once. It turned out to be his most profitable Shark Tank investment when he spoke to Business Insider.

In order to stay ahead of trends, Herjavec helped Tipsy Elves become a year-round novelty apparel company. He helped the company capitalize off not just Christmas but also but in multiple holidays and even the college football season.

The change in annual revenue has been immense because, before its debut on Shark Tank, it made gross revenue of $900,000 in 2013 and last year $8 million while $12 million this year.

  1. Grace and Lace

This business idea was a husband-and-wife duo, Melissa, and Rick Hinnant’s fashion company, Grace, and Lace that shark, Barbara Corcoran invested $175,000 for 10% equity. When she spoke to Business Insider, the shark said that Grace and Lace was her most profitable Shark Tank investment.

  1. Wicked Good Cupcakes

Wicked Good Cupcakes, a mother and daughter company that makes cupcakes premiered on the show in season 4. The duo made a deal with O’Leary who instead of equity invested $75,000. After its debut on the show, the duo expanded Wicked Cup Cakes to a new production facility. In the course of this, O’Leary made $1 for every cupcake sold and when his return on investment was paid back, he earned 50cents for every cupcake sold.

  1. Scrub Daddy

This sponge company has become the biggest Shark Tank’ success stories. Investor Lori Greiner has had a total of $75 million in revenue over the past three years as return on investment in Scrub daddy. In season 4 of the show, Lori made a deal with Scrub daddy CEO, Aaron Krause for $200,000 in exchange for $20 equity.

Reiner invested in the company not because of its gross sales because it had not been doing so great; $100,000 in sales over 18 months. The investment was based on foreshadowed potential Greiner saw in the company’s signature offering.

It was a proprietary smiley faced sponge that was better than the traditional sponge as it was more durable and hygienic. She helped grow Scrub daddy by placing the company in a myriad of stores like Bed, Bath and beyond and also QVC. The sponges have become the best sellers.

 

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Business

Top 8 Pillars of a Successful Business

by Matthias
written by Matthias

Pillars hold something up giving it a strong foundation. Just like a chair held in place by its legs, a business needs pillars to hold it up. These pillars are found in the business ecosystem and are wide in variety. The best minds in the business have given their insight on pillars that have held up their successful businesses.

The founder of GST, Glenn Bolton made his discovery on certain factors that will either grow the volume of your business or plummet its destruction. There are more than 30 pillars of business but have been ramped up to 8. These 8 are major key and if you make sure to incorporate each into your business structure, your profit margins will grow tenfold.

Pillars of a Successful Business

The following are the main pillars for your business success;

  1. Trends

Trends will allow your business to cast a new level of business. Companies like Apple, Facebook, Reuters and Amazon among many others have implored trends. When you implore trends, it will keep your business ahead because you will find a way to grow through its adjacencies.

Some of the top 10 trends that you have to heed to make your business successful are; new ways to scale business, new type of business ecosystem, a different type of leader and leadership values, rise of the global middle class, global division of labor, the universal connector, cloud infrastructure and many more.

Knowing these trends will help you learn how to conduct your business anonymously on a huge scale. They serve as a source of innovation because trends will deepen your understanding of the business pyramid. This is how Unilever has penetrated the Indian market.

  1. Products

In conjunction with products that your business is engrossed in, these 9 factors should define your product line. On-demand, access how big the market is big for your products and services. Popularity will help you know if your products and services are a requirement or fashionable. Also, ask yourself whether your products provide value for money to its end user.

Basing on the services that your products provide, ask yourself whether those services are what people truly need. If it is yes, then your customers should readily pay full retail for the value of your products. Services and value reflect products uniqueness because they show exclusivity of your products.

Assess the longevity of your products in the market. If your products last long in the market, you will know the future of your business. Place your basis on whether there are more products ‘in the pipeline’ and your current competition.

  1. Company

Just like products, this third pillar of a successful business lets you upscale your business success by asking yourself certain company related questions. It starts with your management, knows the track record of your co-founder team that is running your company.

For a successful business, your company has to tread on legal lines. If it treads legally, what about the ownership? Is it listed on the stock market publicly or it is a private company? Check on globalization aspects because knowing if to market worldwide or only locally will what reserves to adjust such as an internet presence.

  1. Income

A successful business does not base alone on its profit margins. Its rate of return on your initial investment has to be promising for your compensation. Also, what leverage you hold will work out the success of your business. In turn, the rewards that you get have to be fair for the levels of commitment shown.

Speaking of investment, your return on investment matters. How soon you can return your initial investment will determine your level of commitment to how much money is required from you. Income revolves greatly around supplementary cash you can make in your spare time. How long it takes before you replace your current income will be based on income limitations.

It, however, relies on your payment schedule because knowing that will give you a fuller picture of whether your income is unlimited or potential limited.

  1. People

For you to make great strides in business you need to count on your co-founder team. The sort of people you surround yourself have to be smarter than you. Take it from Russell Simmons, the Def Jam Recordings founder whose take on people to surround yourself should be those smarter than you.

Accomplishing feats is a prerequisite for a team that is inspired to instill greater good in the company. Inspire teamwork by putting in place graded recognitions and foster an environment that kills a one-man show.

  1. Support

Training will host your business. You have to ensure that forums have been put in place to offer support. For meetings, you can strategize whether to go for online options or physically attend the meetings. Instill creativity which will give your support team effective tools in developing market materials and acquiring a domain name or creating a website.

  1. Stewardship

Businesses that are shortsighted in stewardship lack in outliving a company’s societal duty of giving back to the community. You, therefore, have to consider environmental impacts by assessing your ecological outlook. Charity and equality, therefore, have to count.

Be resourceful by having a policy of equality and participate in charity events as a way of giving back.

  1. Process

Take it from analysts and Dr. Edwards W. Deming’s take on how systems and processes will corrupt your business if you will not be vigil. He says that 85% of reasons that account for failure in meeting customer expectations are based on system and processes deficiencies.

You, therefore, should not take it lightly because systems and process can jeopardize your business. Have a complete understanding of your company’s systems and processes, make I part of you.

These pillars are the most elaborate pillars of a successful business. There also is profit but it is generally represented in the pillars. If you trends are overly your priority just like Unilever, your business will work its adjacencies through all sorts of markets. These pillars will radically move your business into markets you did not know you could dominate.

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Startups

7 Mistakes That Startups Need to Avoid

by Matthias
written by Matthias

Startups are like walking on eggshells. Without precision, the commitment you put in starting a business can be caught in a web of startup mistakes. This is normal for starters because startups usually have a high rate of failure. With a wave of insight from top entrepreneurs, you will get past startup mistakes and your business will make the list of minority successes.

This review has taken notes from the world’s best; Tony Robbins, Mark Cuban and many others just so it can mentor you past the 7 Mistakes That Startups Need to Avoid. Furthermore, it strives to make your business large and influential. You should know that startups that get past failure are renowned today, take for instance McDonald’s.

7 Mistakes That Startups Need to Avoid

Startups have a nursery bed. The ecosystem in which you launch a startup will define its success and volume. One good example of a startup ecosystem is the Silicon Valley. To simulate a perfect ecosystem, however, you have to avoid startup mistakes.

Get these facts right because these 7 mistakes are the blizzard that every startup needs to avoid. You can build a co-founder team to secure financial resources and key skills for your business but have no insight on these 7 mistakes you need to avoid.

  1. Getting everything done on your own

When you let loose a bit and delegate duties to a select team, it broadens your focus even more. When you construct all the duties to yourself just so you can be a one-person show, your startup will not go far. Functionality should not obscure you from seeing the greater picture.

Delegating tasks, however, comes with its fair portion of challenges. Things will sometimes not go precisely as you want them to. Just because a fall-out is perfect when you get things done will corrupt teamwork. Startups are built on teamwork.

  1. Not enforcing accountability and punctuality

You do not have to be shrewd and neither should you be the too ‘nice guy’. When one member of your team is constantly late yet you do not reproach him/her, your entire team will see your weak accountability side. You should enforce accountability because that and punctuality are the real cornerstones for a successful startup.

Lateness shows a lack of reliability. Therefore as an entrepreneur, you have to build punctuality and accountability as standards to grow your support team. Your co-founder team will grow with the standards that you set for them, therefore, give it your best shot to model them.

  1. Lack of genuine interest

Your interest has to be deeply endowed in the business venture you indulge in. Virgin group under magnate Richard Branson has dominated the world because the entrepreneur has a deep passion for what he does. To accomplish feats and win big you have to care the impact your business has on a daily basis.

Check your entrepreneurial vibe just so it is not flawed. At the end of the day, you have to be certain that the energy and time you place in your business will not go down the drain. Lack of genuine interest will thwart your startup.

  1. Getting hung-up on details

Your desire to set a limit should not get you overly absorbed in details. This is a path down self-destruction because sometimes, hitting the perfect mark will steal your peace. Let things flow and then go with the flow.

In the beginning, your business will not bloom and impatience will only make it worse. Getting overly absorbed in details will make you short-sighted. If you have the details in mind yet not overlook them, you will have a chance to deal with problems at hand.

  1. Building an expensive website on day one

Building yourself a brand by buying a domain name or making a website will sell your business first. The last thing you should not jump hurriedly to as a startup is spending a lot of cash on making a website. Have a spendthrift mind if you are sure of getting back your initial investment, but then again be economical.

Start off with a basic website which will be easy and cost friendly to launch. It will also market your brand early and there is no sense in spending cash you do not have. Even though your gut will tell you it is right, some of the assumptions that you make are flawed. You have to learn and adapt in order to grow and accommodate your customer needs.

  1. A consistent rebranding of products that don’t sell

You have to be sure of your target audience. It will save you the trouble of newly packaging a product because it does not sell well. This is one of the biggest startup mistakes that will wreck your entrepreneurial days.

If your product does not do well, it will be a result of either marketing it in a wrong way or marketing the right product to the wrong people. Understanding our target audience should be your top priority to avoid flawed marketing. When you work with your target customers, you will be created for them the best version of a product they need.

  1. Unnecessary expenses

With a startup, you have to keep in mind that not all the office luxuries; espresso machine, fax machine, double monitor setup will latch onto you right from the beginning. You have to evaluate your work layout. If you have few employees that are comfortable working from home, you will not have to rent office space.

In the start, you will have to forego some of the niceties and let your initial investment payback first then the luxuries will fall into place. You need a mindset that allows you only to spend cash on activities that will positively influence your company’s revenue.

Startups can crumble under your feet if you cast a blind eye to these 7 mistakes that startups need to avoid. It is a freaky affair to indulge in because startups have a relatively large scale of failure. If you make it past the failure bracket you can be certain of immensely growing your business over time.

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