The cost of startup is very high when starting a company, the business owners must pay extra attention to break-even point. The break-even must be first goal of a company, there are many ways to focus on the break-even, the most common way is to focus on the monthly break even point. At the end of the month the company must cover the cost of fixed cost and as well as variable costs. The fixed costs are the priority over variable costs, usually fixed costs are the highest cost of a company. The rent and the salaries are the biggest contributors to the costs. Every employee has to focus on contributing to the growth of the company, otherwise the employee becomes a cost to the company. In fact the biggest cost of a company is the salaries and as well as the cost of salaries of employees. The higher the cost operating the company the higher the break-even point and less chance of achieving the goal anytime sooner. The break-even point is vital to companies because before this stage companies cannot focus on expanding the business. Think of it like this, someone has to fund the operation of the company and if the company cannot make enough earning the person that is funding will lose interest. Therefore, it is vital that the company does not exhaust the investment and lose the interest of the investors. There are many businesses failed because their did not make the break-even point as priority. How can you achieve break-even point fast?
The number one tip for investment for beginners is to start small, most of the investors that are beginners makes mistakes when they start investing. The investors should give them self a chance to make mistake, if investors invest big then they lose so much which does not allow the investors to continue to invest. Start investing small and do not invest big even if you are investing well because you might have the beginners luck. The good investors invest based on their knowledge that their built up. As an investor you need to understand many things such as the market, company and the economy.
The first thing you need to know in investing in share market is "demand and supply". When investors purchase shares the demand for shares increases, and when shares are sold the demand for share reduces. The price of shares in stock market is determined based on demand and supply. Therefore, it is important to look at factors the influences the demand and supply of the shares in specific company. The shares are traded among people after it is sold at Initial Public Offering (IPO).
Thinking about value can eliminate the extra unwanted thoughts, putting your focus on value can help you to be productive and in return you will get an established company with strong foundation.
The success for almost any type of startup is a team, a startup with the good team can build a strong company with a strong foundation. However, it is very hard to find the right people for your team. The members of your team should be flexible to able to cooperate with each other. The flexibility and understanding can help to fix the problems and move forward.
How to look for a team member?
Peaking a team is not as easy as it may sound, but in fact, among the hardest part of a startup is having the right team. Look for the team members that has the same understanding as you and that has the potentiality in overcoming the problems. Look for the person that wants it as much as you, if the person doesn’t want it as much as you then there is no point of including him/her in your team because they will drag you down. Another essentialities of peaking a team member are an understanding of what he/she can contribute, therefore, look for the team member with skills and knowledge that will be vital for your startup.
Ambition of a team member
An ambition is good because it helps the person to try hard to achieve their dreams and goals, however, an ambition is not always good especially in a team. In a team, an ambition of team member should be on the same mission and vision instead of individual ambition to be someone else. For example, a team might have the same goal to startup the company and then have a net profit of $100,000 within a year and then achieve even more goals of a company then it is very good. However, if one of the team members wants to build their individual reputation or be above all other members then this kind of ambition is not good for the team, instead, it will create misunderstanding among the members.
The speculators are investors that profit from price changes, they usually buy when the price of financial instrument is low and sell when the price is high. The speculators are highly interested in futures market due to potentiality of high profits.
The cost of transaction in futures market is low
The speculators are interest because the transaction cost in futures market is low compared to other types of market such as stock market.
The futures market is open to all the investors
The speculators are interested in futures market because the futures market is open to all traders regardless of the size of the traders investment. All the traders have relatively equal access to the futures market.
The margin and high leverage in futures market
The traders do not pay the full price of the futures they can only pay the margin of the futures to trade, therefore the leverage is high which leads to high profit, but it also means high loss. For example, if the futures price is $1000, the trader can trade that with only $100 or in some cases as low as $10.
Evaluate your skills and knowledge
We have skills and knowledge that most of the people are willing to pay for, by evaluating your own skills and knowledge you can have an idea of what kind of services or products you can offer to customers. You will be amazed how many people could be interested in what you can offer to them. Few examples are: Tennis players use their tennis skills to startup tennis academy, good chefs use their skills to startup restaurants. If you do not have obvious skills like the example I made then you will need to look into your other skills and as well as your contacts which could help you to startup consulting business.
Look at your surroundings
The business ideas are all around us, but not many people can see these ideas or even if they do see some great ideas but they might not understand how they can turn that idea into a business. Look for small and simple business ideas rather than thinking about complex ideas, it is so hard to find complex ideas, but if you do get complex ideas and if you know how to turn that into business then it is great. Look at your surroundings to find simple and the easy business idea that can attract customers. Think about the business ideas which you can continuously add value. The greater the value of the products and services the greater the value of your company and the greater the value of your company the greater the attraction of investors to expand your business.
Not everyone is blessed with a good supervisor or a boss, but some of the bad supervisors or bosses have horrible ways of reducing the quality of work performed by employees. These are the top two habits of horrible bosses.
Putting pressure every day over small things is a bad habit of a bad boss
It is normal to put pressure on the employees when there are deadlines, or it is also normal to put pressure on lazy and inefficient employees but it is not good to put pressure on employees every day and constantly over small things is a bad habit of a bad boss.
Devaluing employees is another bad habit of a bad boss
If you have a boss that does not say good things about you then you are lucky, because there are some bosses that say so many negative things to their employees. Some bosses or supervisors treats their employees badly when there is a guest in the office to show off to their guest. These things might sound childish but it happens a lot in many countries. Devaluing employees is a very bad habit of a bad boss, especially the employees that contributes so much to the company. The best thing to do is to be a team player and appreciate the hard work and contributions put by the employees rather than constantly devaluing them.
Level of Equity ownership will have an impact on the Venture Capitalist and Entrepreneur
Optimal level of ownership is the best for venture capitalist and entrepreneur
The ideal level of ownership is optimal level of ownership which is 50% for both parties. In real life it is much more complicated than this because there are more than one owners of equity in the team of entrepreneur which they can come to disagreement anytime and they can also reduce their level of effort if as an individual does not have enough ownership.