July 29, 2010
Can an Imperfect Market Produce Perfect Results?
In economics, it's well known that a perfect market is one in which everybody has access to information instantly, accurately, and uniformly. The closest market in the United States to this is our stock market, where the information flows freely; investors know exactly how securities are priced within moments of the most recent trades. Perfect markets are difficult to beat, and the people who identify and take little pinches of profits call it arbitrage.
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accredited investors achieve success Business Financing Joel Block potential investors Real Estate real estate syndicationJuly 26, 2010
Can Lone Wolves Cooperate?
A few days ago, I shared my view on how entrepreneurs are being squeezed out in this economy - even more so than our bigger company counter-parts who have also been struggling. A lot of people agreed — and a few disagreed – but this topic created a lot of discussion. Now I want to put forth a strategy for entrepreneurs to embrace. One which could help all of us overcome this mess.
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Bullseye Capital Business Financing Business Growth entrepreneurs Growth Minute Joel Block private equity Raising Capital Real Estate Strategic NetworkingJuly 21, 2010
The Death of Entrepreneurship?
In business, nothing matters more to me than free enterprise and the success of entrepreneurship across America. The values that entrepreneurs bring to business are what have made this country great over its 234-year history. But I'm concerned that the current business and political environment is so unfriendly to entrepreneurs that the death of entrepreneurship may be imminent.
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accredited investors Bulleye Capital entrepreneur investment property Joel Block property management raise capital real estate investment real estate syndicationFiled under Business Financing, Business Growth, Private Equity, Raising Capital, Real Estate by Joel Block
Below is the third and final part of my personal reflections from the Real Estate Deal Making And Syndication Symposium that we just held in Las Vegas. My comments are directed toward the other people who attended this live program, but I chose to share them on my blog for the benefit of all real estate professionals and experienced investors.
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achieve success build businesses networking successful entrepreneursMarch 6, 2009
What's the Problem with Having a Sugar Daddy?
Every entrepreneur, whether a business owner, real estate syndicator, or other person who is trying to raise capital and make their project come to life, thinks that having a Sugar Daddy would make their dreams come true. I am defining a "Sugar Daddy" as an investor who just keeps funneling money into your project (i.e. real estate, independent film or any other business venture) because they think you're so terrific.
February 16, 2009
Isn't it Just Economics 101?
My kids have been asking what exactly is going on with the economy and what exactly happened that made the situation so bad, so fast. They are really referring to what the tipping point was that caused this entire iceberg to turn over in September 2008.
I try to explain it to them as simply and succinctly as I can and somehow, by boiling it down into terms that even my 7th grader can understand, it helps me to understand the situation a little bit better too. I don't need to speak in 7th grade language, but I think that for purposes of this example, simplicity goes a long way.
I have several friends who provide financing against invoices and accounts receivable. These two types of financing are called accounts receivable financing and factoring. Both of them use invoices as a form of collateral to advance funds to companies for sales that they've already made but where they won't collect the money until later. The smaller factoring and accounts receivable companies get their money from larger financial institutions. They use a facility called a rediscount line. They pay a modest rate of interest and then they loan the money out that they have on their line to their customers at a higher rate and make the spread. I know several companies that operate in the $100 million dollar category (meaning that they have lines of credit of approximately $100 million dollars that they can loan out to a wide variety of borrowing companies that make up their customer base).
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business money businessFiled under Business Financing, Business Growth, Financial News, Private Equity by Joel Block
February 12, 2009
Where are the Loopholes in Corporate Liability Limitations?
My good friend and attorney colleague, Steven A. O'Rourke http://www.calcorplaw.com is a very sharp corporate and business lawyer. He is a guy that other attorneys go to when they want to debate the law. But he is also a guy that entrepreneurs and business owners should go to when they are concerned that they are thorough and accurate because Steve strives to be both. We often kick around concepts that affect the entrepreneurial community and below, I want to share another piece of work that Steve produced as a result of a recent conversation that we had.
Beginning of Contributor Comments:
You can reduce exposure to legal liability by learning the differences and interplay of the different legal regimes that apply to shareholders, directors and officers, respectively. When a prospective client asks me to create a corporation for which he would be (an) owner, an officer and (a) director, he usually states his purpose as wanting "personal immunity" As a matter of professionalism, I always assure the client knows the general law before I start preparing documents.
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business business advisorFiled under Business Financing, Business Growth, Financial News, Meet My Friend, Private Equity, Raising Capital by Joel Block
This article is the fourth in a series by my colleague and friend Eric Shaw of http://www.nycreditinc.com. Eric is one of the top credit analysts in the market. I regularly go to Eric to help me analyze client issues and for assistance in making a variety of business decisions. Not to mention, Eric is a rock star when it comes to networking. He has a lot to offer and I would like to bring it to my readers over the next several weeks. This article will be continued next week:
Beginning of Contributor Notes:
It is always tempting to sell to a customer who promises to pay promptly. Unfortunately, even so- called "good" customers delay payment and some default on trade credit. The unpredictable nature of today's business climate wreaks havoc on the finances of even the best-run businesses.
It is possible, however, for sellers to protect themselves from customer credit problems. It just requires a bit more work than was the case in earlier years.
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business business advisorFiled under Business Financing, Business Growth, Financial News, Meet My Friend, Private Equity, Raising Capital by Joel Block
February 5, 2009
Business Advice on LLCs and Securities Law - A Word to the Wise?
This is the second article in a series by my good friend and attorney colleague, Steven A. O'Rourke http://www.calcorplaw.com. He is a very sharp corporate and business lawyer and he is a guy that other attorneys go to when they want to debate the law. But he is also a guy that entrepreneurs and business owners should go to when they are concerned that they are thorough and accurate because Steve strives to be both. We often kick around concepts that affect the entrepreneurial community and below, I want to share another piece of work that Steve produced as a result of a recent conversation that we had.
Beginning of Contributor Comments:
Business people are often puzzled that securities laws might apply to their funding efforts. They often believe that, because they are not selling "stock" or advertising beyond word on mouth (or word of internet), or are selling only to 5 or 6 people, theirs is somehow under the radar of the "Wall Street" laws and regulations. This article alerts you that securities law is unclear, but expansive, in scope and effect, even to the "small business". A director, officer, "finder", promoter, or professional advisor to a company, might well be personally, even criminally, liable in ways he'd never imagined possible.
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business money businessFiled under Business Financing, Business Growth, Financial News, Meet My Friend, Private Equity, Raising Capital by Joel Block
This article is the third in a series by my colleague and friend Eric Shaw of http://www.nycreditinc.com. Eric is one of the top credit analysts in the market. I regularly go to Eric to help me analyze client issues and for assistance in making a variety of business decisions. Not to mention, Eric is a rock star when it comes to networking. He has a lot to offer and I would like to bring it to my readers over the next several weeks:
Beginning of Contributor Notes:
When you're not satisfied with the information standard credit data provides, several often overlooked tools can make you more comfortable about extending credit - without the hassle or UCC fillings.
Eric Shaw, president of New York Credit, Inc., explains how using these low-cost, under-utilized tools can help you determine a customer's creditability and guarantee payment.
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