Private Archives - GUJRAT INDIA

AIG, Private Equity and Venture Capital

AIG: Maurice Greenberg’s piece in today’s Wall Street Journal nearly provoked an attack of apoplexy. I’m not sure if I’ve read such a slanted, self-serving editorial in a long, long time. I’m pretty shocked that the WSJ would publish such pandering drivel. Be that as it may, we all know that the Big Mo controls gobs of AIG shares both directly and through his management of CV Starr, so let’s just say that we know where he is coming from. When he starts out with the bailout-inconsistency argument, he kind of had my ear. But when he went on to praise the Citigroup package while chastizing the AIG deal, I couldn’t help but call bull$hit.

To date, the government has shown everything but a consistent approach. It didn’t give assistance to Lehman Brothers. But it did push for a much-publicized and now abandoned plan to purchase troubled assets. The government also pushed for a punitive program for American International Group (AIG) that benefits only the company’s credit default swap counterparties. And it is now purchasing redeemable, nonvoting preferred stock in some of the nation’s largest banks.

The Citi deal makes sense in many respects. The government will inject $20 billion into the company and act as a guarantor of 90% of losses stemming from $306 billion in toxic assets. In return, the government will receive $27 billion of preferred shares paying an 8% dividend and warrants, giving the government a potential equity interest in Citi of up to about 8%. The Citi board should be congratulated for insisting on a deal that both preserves jobs and benefits taxpayers.

But the government’s strategy for Citi differs markedly from its initial response to the first companies to experience liquidity crises. One of those companies was AIG, the company I led for many years.

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The maintenance of the status quo will result in the loss of tens of thousands of jobs, lock in billions of dollars of losses for pension funds that are significant AIG shareholders, and wipe out the savings of retirees and millions of other ordinary Americans. This is not what the broader economy needs. It is a lose-lose proposition for everyone but AIG’s credit default swap counterparties, who will be made whole under the new deal.

The government should instead apply the same principles it is applying to Citigroup to create a win-win situation for AIG and its stakeholders. First and foremost, the government should provide a federal guaranty to meet AIG’s counterparty collateral requirements, which have consumed the vast majority of the government-provided funding to date.

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The purpose of any federal assistance should be to preserve jobs and allow private capital to take the place of government once private capital becomes available. The structure of the current AIG-government deal makes that impossible.

The role of government should not be to force a company out of business, but rather to help it stay in business so that it can continue to be a taxpayer and an employer. This requires revisiting the terms of the federal government’s assistance to AIG to avoid that company’s breakup and the devastating consequences that would follow.

Hank, you’ve got to be kidding me. The U.S. taxpayers saved Citigroup’s life, and for that we may get up to 8% of the company. THAT is called a “punitive program” in Hank’s parlance for the U.S. taxpayer. In my world when you save a company you own ALL the equity, not 1/12th of the equity. The fact that the taxpayer gets up to 80% of AIG – now that starts to make sense. I agree with the Big Mo’s contention that “The purpose of any federal assistance should be to preserve jobs and allow private capital to take the place of government once private capital becomes available.” But that has nothing to do with post-restructuring equity ownership. He then pulls on the heartstrings by saying “The maintenance of the status quo will result in the loss of tens of thousands of jobs, lock in billions of dollars of losses for pension funds that are significant AIG shareholders, and wipe out the savings of retirees and millions of other ordinary Americans.” Well, Hank, that is 100% on you. YOU should have thought things through before building a company and a culture that gambled it all – and lost. You tell that retiree, that pensioner how you screwed them. That’s called integrity. This thinly-veiled call for personally getting bailed out is both insulting and offensive. And I’m not buying it. I’m sure that my fellow U.S. taxpayers aren’t, either.

Private Equity: The daisy chain of secondary sales of PE L.P. interests will almost certainly accelerate. It is one of those slow-motion train wrecks that is painful to watch. The calculus is easy to understand: public equity values plummet, PE values are stickier and fall more slowly, PE as a percentage of overall assets rises to unacceptable levels, precipitating a wave of sales of PE L.P. interests. An interesting feature of this dynamic is autocorrelation, where PE values are slow to adjust notwithstanding the public market comparables that are available. If industrials are down 40%, then don’t you think a portfolio of PE holdings in the industrials sector should trade well beyond 40% down due to illiquidity? This isn’t the way many PE funds choose to see the world, however. Regardless, the secondary market is just that – a market – and the discounts being placed on marquee funds like KKR and Terra Firma reflect this reality. Pensions and endowments have to dump stuff, and are trying to do so at a fraction of their basis. But even at fire-sale prices it is hard to move the merchandise. In the next few months we’ll see just how desperate these investors are. Might we see KKR trade at 30 cents on the dollar? It’s possible. And frightening.

Venture Capital: I attended an interesting brownbag today with my pals at betaworks. A big part of the discussion was around funding in today’s hostile environment. Here are a few of the tidbits that came out of the dialogue:

Be prepared to live with your current investment syndicate.
If possible, have a deep pocketed investor as part of your syndicate.
Raise 18-24 months of capital, no less. This can be done through a combination of capital raised plus a reduction of operating burn.
Restructurings are getting ugly. Investors, whether inside or outside, are demanding both haircuts from the last round plus and a priority return of capital such that they are fully repaid before anyone else gets anything. Looks, smells and feels like a cram down. This is why having 24 months of capital in the bank upfront is so important.
In these down times coalitions get formed between Management and New investors vs. Old investors. This mis-alignment of interests can lead to gridlock and push a company to the brink.

There was much more but these were the high points. Even with today’s difficulties there was still a lot of excitement about new companies and new ideas, with the confidence that money would come to those that truly deserve it. In short, there’s hope.

By: Binaryoptionstradingsignals

Rising Insecurity – Rising Demand for Private Jet Charter Services

Thanks to the growing security chaos at the airports, companies now increasingly prefer to travel through private charter jets.

According to a survey conducted by Air Charter Guide, there was an 80 percent increase in business-related bookings of private jet charters within two weeks of Sept. 11, 2001 terrorist attacks when commercial airlines were hijacked to ram into the World Trade Center and the Pentagon.

Similarly, private jet service companies reported a rise in demand from their customers, both old and new, following a terror alert in the UK.

Following 9/11 and the subsequent increase in terror threats, stringent security checks at the airports have made the whole experience of traveling even more frustrating and exhausting.

One has to endure long queues, all kinds of checks and intimate body searches to board an aircraft. Confiscation of even petty things such as nail clippers and tweezers has become a common sight at the airports.

Hence, when we explore the reasons why more and more people are now preferring to travel by private charters flights instead of commercial flights, despite the obvious difference between costs, the reasons are quite a few:

o In the wake of terrorist attacks, security is unquestionable. In a private air charter, you know exactly who the pilot is, what type of baggage is on board and who the fellow passengers; if any, on the flight are. This provides the much needed peace of mind.

o Time is money for business travelers. Private charters have become even more popular among top corporate executives whose time is too valuable to waste in long queues. There is no question of delayed or cancelled flights; as the private flight is scheduled only at the time you want. In fact some organizations don’t mind spending an extra bit on arranging private jets for their senior staff too apart from their top executives.

o Private flights enable the optimum utilization of time and ensure confidentiality. You can work on your laptops, conduct meetings; just about everything in the sky that you can do on the ground in your office. Fax, e-mail, phones, computers; everything is easily accessible.

o Private charter flights maximize the productivity of the employees by saving their valuable time.

Apart from business honchos, an increasing number of common people are also considering private flights as a preferred alternative to commercial flights.

Charter-aircraft operators now claim that as many as 90 percent of their inquiries are from new or first-time charter customers.

Apart from convenience, privacy and comfort, private air charter also provides better protection and security in these chaotic times.

Private Label Manufacturing – Make Your Own – Start a High Profit Business

Private label manufacturing of cleaning products, toiletries and cosmetics is a growing and highly profitable industry.

Many businesses – from hair and beauty salons to cleaning companies, supermarkets and many more – are beginning to realize the value in promoting their own business name and logo, and gaining customer loyalty for their own products, in preference to providing free advertising for multi national conglomerates.

Private label manufacturing gives any business the opportunity to have its own range of products, with its own brand name and label, for which customers must return exclusively to them to re-purchase.

With the correct formulations, these products can be as good as, if not better, than the leading brands. Private label manufacturing allows you to choose the quality of your ingredients and know exactly what is in the products you are using and selling to your customers.

You don’t need to hire a private manufacturer in order to produce your own range of products. You can easily and safely do it yourself. In fact, you can even manufacture products for other companies.

Private label manufacturing is also extremely profitable. If you have an existing business and use cleaning products, toiletries, skin or hair care products on a regular basis, you have the potential to save a substantial sum.

If you’re looking to start a business, or increase your existing income, cosmetic and chemical manufacturing has little competition for such a huge market.

The profit margins in private label manufacturing are something most outsiders find amazing – a bottle of shampoo which sells for $10 or more can cost as little as 50 cents to make from raw ingredients.

Private label manufacturing is also surprisingly easy – if you can follow simple directions, you can easily mix together the ingredients required to make everything from window cleaner and laundry detergent, to deodorant and air freshener, self-tanning spray, acne treatments, mineral make-up, etc. You can use exactly the same raw ingredients as the major cosmetic and chemical manufacturers.

Private label manufacturing is a highly profitable service to offer for fundraising and promotional activities for sports clubs, schools, service organizations, and similar groups.

Private label manufacturing does not require an expensive laboratory and equipment – it can easily be done from home or workshop.

The formulations are not common knowledge – which means it is an extremely difficult business for others to copy. This also explains why the major manufacturing companies are some of the wealthiest corporations in the world.

Private label manufacturing is a unique and prestigious business offering unlimited opportunities to expand further in many directions.

Private Limited Company Registration In Delhi

Registering a company is the most important task before starting a business in a legal way. Whether it’s a private limited company registration, partnership, proprietorship firm or limited liability partnership registration, a business should get incorporated based on its nature of business, organizational structure and its fiscal status. When it comes to Delhi, which is one of the most preferred investment hub, a business group or individuals must fulfil the statutory compliances recommended & suggested by Ministry of Corporate Affairs and its concerned authorities before executing their business plans.

Registering a company is still considered as tedious task because of involvement various legal formalities. Here we will try to discuss the simplest way of company registration in India. Initially the form processing were done manually from the back – end teams (still operational) but after initiation of MCA21 portal the formalities became simpler and faster. Below are comprehensive details of the documents & schedules to register a company in India.

Mandatory Requisites Before Process Initiation

Minimum Authorized Capital Rs 1,00,000.

Minimum Two Directors

Pan Card of Each Directors

Address Proof of Each Directors

At least Two Photographs Of Each Directors

Business Premises/Office Address Proof (Rent Agreement Valid)

Phase I Initiated

Day 1: Processing of DIN (Director Identification Number) & DSC ( Digital Signature Certificate).

Day 2: Awaiting DIN & DSC -> DIN & DSC Received.

Day 3: Name Availability Check & Name Approval Application In Progress.

Day 4: Pending For Action -> Assigned-> Pending For Approval/re-submission.

Day 5: Name Approved.

Phase II Initiated

Day 6: MOA ( Memorandum Of Association) & AOA (Articles Of Association) Drafted.

Day 7: Processing of Incorporation Application

Day 8: Pending For Action -> Assigned-> Pending For Approval/re-submission.

Day 9: Certificate Of Incorporation Issued.

Day 10: PAN (Permanent Account Number) of Company Applied.

Once our company got Incorporated, we may take a leap towards our working & get the relevant certificates related to our nature of business. For example if we are providing services then we fall into service provider category hence liable for Service Tax Registration. On the other hand if our business relates sales & purchase of products & commodities then we must opt Sales Tax registration.

These both certificates helps us in smooth operations in terms of billings & quotations.

It is always recommended that we should consult a legal or financial consultant prior to starting a business as it involves some legal issues that can be resolved by taking help of the experts in private limited Incorporation.

Corporate Social Responsibility of Private Companies in Natural Disasters

1. INTRODUCTION:

1.1. THE ABC of CSR:

History is the sole witness to the phenomenon of shift in priorities in Business. There was a sudden lateral shift, wherein the focus drastically shifted from profit maximization to welfare of the society. This in terms of various management Gurus was the era of ‘Corporate Social Responsibility.’ CSR can be defined as ‘bringing corporate behaviour up to a level where it is congruent with the prevailing social norms, values, and expectations of performance.’

By Indian Companies Act, 1956, Section(3) (1) a company means a company registered under companies act, like any juristic person company is a legal entity. By this act it acquires a legal status muta mutandis to that of a person, one who is capable of having his own Rights and duties. CSR is nothing but a way to accomplish the fundamental duties prescribed in the constitution of India which a normal legal person is suppose to follow.

According to Berle ‘Company’ is not merely a legal institution rather a device for attainment of socio economic end. In layman’s term Corporate Social Responsibility (CSR) is an obligation rather a mandate that a corporation needs to abide to in order to maintain a perfect equilibrium between the 3Ps i.e. Profit maximization, people’s right, and the planet. Nothing in this world comes for free, CSR is the opportunity cost that the company has to pay in order to exist in this society.

Archie B. Carrol (1979) defines social responsibility as a four step scale. He feels the company apart from economic and legal responsibilities also has ethical responsibilities. Several scholars tried to develop an integrated model to define the perfect structure of CSR, however no one has successfully propounded one.

Modern business organisation is nothing but a hub of socially conscious people who constantly make an effort to align their profitable opportunities and ventures with their social industries and values intact. CSR provides a skeleton of boundary for free market to operate in a responsible manner. It is an undisputed fact that the legal framework of India has empowered the companies to the heights of zenith, but one must never forget with great power comes great responsibility.

To conclude this section, It may be noted that CSR is not a modern discovery and certainly not a discovery that can be accredited to the economically developed nations around the globe. Altogether CSR has travelled a long way, from the lines of philanthropy to a legal mandate; it has incorporated several changes in itself. Hopefully the noble concept of CSR doesn’t disappear midst the urban blight.

1.2. CSR and Natural Disasters: A brief idea

There has been a rapid growth in the facet of CSR for disaster management and combating techniques. India has been customarily susceptible disasters on account of its unique geographical dimension. In view of India’s high vulnerability profile, the recurrent phenomena of a range of geophysical as well as hydro-meteorological hazards impact millions across the country leaving behind a trail of heavy loss of lives, property and livelihoods. Many Areas tend to lose their development gains due to these draconian events. The economic and social losses caused by natural disasters continue to scale year after year as disasters occur with unswerving regularity encircling every possible segment of the nation including the industrial and corporate sector.

Comprehensive risk management activities is an inalienable part of Corporate Social Responsibility. Corporate Sector in order to comply with this obligation has started exploring its precious mine of knowledge in order to obtain paradigms to avoid disasters. The Research and Development team of several companies have actively tried to adopt measures which would mitigate the risk of the disasters. In addition to this, the corporate sector can be a precious source of technical knowledge, as for example in the case of identification and research on technological solutions to prepare for and respond to natural disasters. On the whole, corporate sector has the prospective for fortification of its own safety and protection against natural cataclysm as well as in assisting the community in reducing its vulnerability to the disasters.

2. DISASTER MANAGEMENT AND PARTICIPATION OF THE BUSINESS HOUSES:

2.1. Brief Idea:

Despite of all the debates in the society it is an undisputed fact that Business houses can prove to be of immense significance in disaster management. After all the root of proper business development lies in the well-being of the society. A disaster doesn’t spare any strata of the society. When a disaster strikes, the first thoughts those race to all our mind is the – what is government doing? Where are the NGO? Where are the social support organisations? Business houses take a backseat and come to mind only as a source for fund raising. Unlike what we think and believe There is a lot more to Disaster Management (DM) than just providing monetary support. Many of the business needs like “Proactive support” is applicable in the areas of disaster management also. While government has responsibilities on one side the business also has equal responsibilities if not more to the society in such situations of dire needs. After all the business happens only due to existence of such societies and business needs shoulder its share of responsibilities.

Can business houses contribute more to disaster management that just provide money? Can there be a better proactive role that business houses in India can play in such disaster management situations? A vaccine is nothing but a proactive measure taken to avoid possible damage due to onset of a disease (when disease itself cannot be stopped). This is precisely what each business is trained for and focuses to do – to avoid future pitfalls and protect itself against future uncertainties.

2.2. The Indian Perspective And Role of Companies:

The companies in India have closely weaved philanthropy in their business schedule and most importantly, they never tried shying away from the moral and ethical obligation they have as responsible part of the country. ‘N’ number of example can be quoted from our day to day life where such mega mammoths have come up for help, times when they were needed the most. Gandhi described large business as ‘trusts’ of the ‘wealth of the people’ and thus emphasized on the larger social purpose that industrial wealth should serve in India. Following the same ideology a number of companies have taken the front seat and tried mitigating risk at large. The Companies that have taken a lead are:

• The Birla Group: Birlas have opened the Aditya Birla Centre for Community Initiatives and Rural Development with focus areas of sustainable livelihoods and environmental sustainability. Specific projects include developing and building capacity through Self-help groups, SGSY – dairy, readymade garments, jute project, basket making, aggarbatti (incense sticks) making, bee keeping, durries making, check dam, irrigation, land development, Soil and water conservation, Pasture development, Social forestry/ plantation activities/ nursery, Horticulture, Farmer training etc. The foundation also stresses on infrastructure development by focusing on creation and maintenance of Roads, Dams, Community centers, water channels and culverts.

• The Bajaj Group: JBGVS, a Registered Society and a Trust, is an apolitical and secular organisation which aims to act as a catalyst for rural and urban development. It assists the resident community of the selected villages and areas, in integrated development, making their villages and areas into models of excellence for others to emulate. JBGVS works with the participating rural community in the selected villages to improve their quality of life. Stress is laid on alleviation of poverty, health care, education, empowerment of women & gender justice. JBGVS relies on a participatory approach in implementing all its projects and also that of the local elected bodies like the Gram Panchayat (village council), Co-operative Societies, Self Help Groups, Women and Youth Clubs in decision making. JBGVS works at the grassroots level in 33 villages and hamlets of Khed and Maval Talukas of Pune District and 11 villages of Aurangabad district, Maharashtra. The integrated development activities under implementation include women empowerment, income generation, health programmes, agricultural extension, animal husbandry, watershed development, drinking water schemes, sanitation and education. 5600 families comprising a rural population of about 30,000 people are co-partners in these development activities. An HIV/AIDS Awareness, Prevention and Care Programme called ‘Project JEEVAN’ was launched in September 2004, with the aim of generating awareness about HIV/AIDS, thereby, arrest further spread of disease and help those affected to lead a comfortable life. It covers 33 villages in Pune District and slums of Pimpri Chinchwad Municipal Corporation (PCMC) area.

JBGVS has been implementing Drought Prone Area Development Project of Zilla Parishad in 7 villages of Pune District since 2003. The overall project cost is Rs.2.10 crores and it includes watershed development work over 3,500 ha. 22 farm ponds, 3 diversion bunds, 4 soil nala bunds and 3 cement check dams have been constructed till April 2008. The activities carried out under this programme helps increase water table in non irrigated area, wells and thereby increase crop yield.

• The Reliance Group: The Reliance Rural Development Trust (RRDT) works to improve the rural infrastructure under the Government of Gujarat’s rural development plans. RRDT created 760 facilities in the rural areas at a cost of Rs. 24.07 crore. The facilities included 247 concrete roads, 465 anganwadis, 38 drinking water facilities, 1 panchayat office, 2 community halls, 5 check-dams and 2 other amenities in the rural areas of the State of Gujarat. RRDT has turned out to be an exemplary corporate NGO implementing government’s developmental plans for rural areas of Gujarat. It is a unique synergy between a corporate giant like Reliance Industries Limited and the Government of Gujarat, formed to carry out rural development projects in private public partnership.

• The TATA Group: The Tata Group instituted the Tata Council for Community Initiatives (TCCI) to work out a comprehensive plan for its social and community initiatives. TCCI acts as a facilitator for the entire group’s social initiatives. It is the umbrella agency that guides and supports Tata Group companies with their community development initiatives. Reinforcing the implicit beliefs the Group brings to its mission of sustainable development with an explicit set of structures, TCCI has a charter that embraces social development, environmental management, biodiversity restoration and employee volunteering. The Tata culture in this critical segment of the overall corporate sustainability matrix – inclusive of working for the benefit of the communities in which they operate, of building India’s capabilities in science and technology, of supporting art and sport – springs from an ingrained sense of giving back to society. In collaboration with the United Nations Development Programme (India), TCCI has crafted the Tata Index for Sustainable Human Development, a pioneering effort aimed at directing, measuring and enhancing the community work that Group enterprises undertake. The Index provides guidelines for Tata companies looking to fulfil their social responsibilities, and is built around the Tata Business Excellence Model (TBEM), an open-ended framework that drives business excellence in Tata companies.

• Infosys: Infosys Foundation has made significant contributions in disaster relief and rehabilitation. It has worked in the tsunami-affected areas of Tamil Nadu and the Andaman Islands, earthquake-affected areas of Kutch, cyclone-devastated areas of Orissa, tribal areas of Kalahandi in Orissa and drought-hit areas of Andhra Pradesh. After the Indian Ocean Tsunami, the Foundation helped victims in Tamil Nadu and the Andamans at various stages.

• The Oil & Natural Gas Corporation (ONGC): The corporation organizes health and community welfare programs in the neighbourhood. Major emphasis has been given for promotion of education, health and community development and in times of natural calamities such as floods, cyclones, earthquakes, landslides, etc. Priority is given to areas around the projects with the following themes:

Education, Promotion of literacy and higher education, Grant of scholarship & assistance to deserving young pupils of weaker sections of society, Facilities for constructing schools, renovation of school buildings, other infrastructure, Healthcare & Family Welfare, Medical camps, Mobile dispensaries, Supplementing the efforts of already existing health centers in the rural areas, Health care for women, children and disabled.

• ICICI Bank Ltd: Its work is focused on four distinct areas:

Sustainable development: To provide the poorest of India’s households access to technology and services that improve livelihoods while conserving natural resources and protecting ecosystems.

Climate change:To promote investments, policies and research that reduce the impact of harmful climate change, improve India’s ability to adapt to climate change and explore linkages between poverty and climate impacting behaviours

Responsible Investment:To encourage policy makers, financial institutions, corporations and individuals to incorporate long term thinking on environmental impacts into investment decisions and to measure quality in green investments.

Accountability:To engage in research and policy advocacy to improve environmental governance and encourage accountability for environmental degradation.

Apart from these there are several others who have effectively tried evolving ways to mitigate disasters and their effects. Others that follow closely behind are Mahindra and Mahindra, Eicher, DCM Shriram etc. A glimpse of such an unending list gives us a feeling that we do reside in a nation where not only people but also the corporations keep their schedule in line with philanthropy and ethics.

3. RECOMMENDATIONS:

Companies should concentrate on disaster mitigation, i.e., minimizing the potential risks by developing disaster early warning strategies, preparing and implementing developmental plans to provide resilience to such disasters, mobilizing resources including communication and tele-medicinal services, helping rehabilitation and post-disaster reduction.

There are three main ways in which corporate sector contributes to the process of disaster risk reduction:

• Corporate Social Responsibility (CSR) in supporting relief, rehabilitation and risk reduction activities;

• Redefining the business continuity plan to factor in hazards, risks and vulnerabilities;

• New business opportunities created in disaster reduction due to the increase in emphasis on risk reduction.

In many countries, big business houses have their own non-profit organizations which run range of social projects on education, health, community development and entrepreneurship development etc which reduce disasters in the long run. Smaller business houses mainly contribute to projects run by NGOs. Government can create an enabling environment for greater corporate sector investment in disaster risk reduction activities through innovative partnership.

Raise Capital With Private Investors

If you have launched your own startup, your first biggest challenge is to raise capital. Fortunately, you choose from a lot of options to raise the funds your business needs. Among all the sources, crowdfunding is one of the best ones as it helps redefine how startups can get off the ground. In this article, we are going to help you know the benefits of raising capital with private investors through a crowdfunding platform. Read on to find out more.

Benefits of raising capital with private investors

1. Funding is not equity-based

First of all, crowdfunding is not necessarily equity-based. Although startups have the liberty to use the equity in order to catch the attention of potential investors, It’s not required to give up ownership to collect capital.

The good news is that some platforms allow their members to apply a reward-oriented approach in order to raise capital. For instance, if your business deals in a specific product, make sure you hand over a few units to your prospective investors before you roll it out for the ultimate users.

2. Attracting potential investors is easy

With crowdfunding, you can attract a lot of potential investors without putting in a lot of effort. Although you can try for angel investors, keep in mind that this process can cost you a lot of time. The reason is that you will have to pitch your small business concept several times.

On the other hand, if you use a crowdfunding platform, you will have to post your business pitch in only one place. And this page will be ready by hundreds of investors from across the globe.

These platforms have a lot of useful features that may help startups collect funds from investors. So, attracting potential investors and raising capital will be much easier using crowdfunding platforms.

3. Higher visibility

Crowdfunding can help you make your startup more visible. Since marketing may consume a large chunk of your budget, it makes sense to use a crowdfunding platform instead. For potential investors, it’s easy to fund a crowdfunding campaign.

And these activities can help boost the visibility of your brand. Plus, you can also attract investors for your next funding rounds.

The Bottom Line

If you want to raise funds for your startup, crowdfunding can be the best choice. All you need to do is become part of a crowdfunding platform and you will be able to tap into the pool of potential investors. And this will help you kick start your business and make it a success in the industry.

Private Jet Detailing And Aircraft Cleaning Entrepreneurs Have Good News For 2017

The general aviation sector has been in the doldrums for quite a while. Some blame this on increased FAA (Federal Aviation Administration) regulations, much of which occurred after 9-11 to protect airports from potential terrorists, unfortunately these increased security requirements and increased regulations have stifled the general aviation (GA) sector. The economic crashes of 2000 and 2008 didn’t help, although in 2003 the economy was flying high thanks to Bush Tax Cuts and stimulus, then it hit a wall again and didn’t really do well until the run-up just before the 2008 crash.

The GA sector has only slightly recovered since then but not back to its 2003 highs. When Obama got elected he railed against Corporate Jets and Corporate Fat Cats which hurt jet sales and new aircraft sales. Remember when congress went after the Auto Makers for flying their corporate jets to Washington DC to beg for bailouts? Public sentiment against GA was at an all-time low.

All of this had hurt aircraft cleaners and jet detailers – it made it tough to make money, but it looks like things are changing and the number of GA Aircraft is increasing. This new Trump Administration is pro-Aviation unlike the Obama Administration. Cutting corporate taxes will also help GA and jet sales. It looks like clear skies ahead for those in the General Aviation services business.

There was a great article in AIN – Aircraft International News – December Edition titled; “UBS Bizjet Index Sees Post-election Surge,” by Chad Trautvetter posted on December 12, 2016 which noted the following facts; The new Trump Administration in the U.S. is widely seen as a positive, with 61 percent of those surveyed expecting the outcome of the U.S. presidential election to ultimately be positive for the business jet market, while 11 percent don’t see a positive impact and 28 percent are uncertain.

In fact the article went on to note that there was an increase of between 44-49% increased orders for private jets over last year. Many of those aircraft will be delivered by 2018, and the backlog will increase used aircraft sales and current new inventory. More aircraft certainly means more aircraft to clean and more new aircraft means more corporate detailing customers as well. Meanwhile, along with the fractional jet market, we see jet air-taxi services on the increase as well as Uber style aircraft ride-sharing plans smaller companies can buy into. All of this means the GA sector is ready to take off again and that’s good for business.