Category Archives: Business

Good Deal, Bad Deal

What Does Your Business Need?

There will have undoubtedly been a long thought process put into seeking private equity finance for your business. While you will have had to prepare meticulously to present to a potential investor group, it is important to recognise that the whole process of seeking private equity finance is as much, if not more, about what is the best deal on the table for your business as well as for the investors themselves. If your business’ needs and the investors requirements meet in the middle, then a successful investment offer may well be forthcoming.

Understanding What A Bad Deal Looks Like

From your point of view, it will be critical to balance the time and work you will be putting into the business in relation to the returns you can expect to get at the end of the time period, both financially and otherwise. A bad deal for a business will see a great deal of input from your end while not getting much out of it ultimately. It is important that you understand the individual motivations of each investment group and what they can bring to the table in terms of knowledge and support. If an investment group works on taking large returns from an investment, then this sort of private equity finance may not be right for you. Should your business plan and balance sheet tell you that once the private equity finance has been removed from your business you will be back to square one, then this is undoubtedly a bad deal for you. While an aggressive strategy from a private investment group may seem attractive, it could ultimately prove futile for your business in the long run.

Good Deals Are Definitely Out There

The vast majority of private equity finance agreements are fair and well put together, with a clear emphasis on the long term success of the business as well as a favourable return for the investors once the private equity finance is withdrawn. Look for a private equity group with knowledge in your sector, who are willing to be flexible in terms of payments and timescales and who can support your business in whichever way you need.

Finding a great private equity finance deal for your organisation could ultimately lead to long term financial success. The best private equity groups will have a demonstrable portfolio of investments who have remained strong since their funding was removed from the organisation.

There are different ways to recognise if private equity finance is a good deal or a bad one.


Sending Business Documents By Post? Should Be A Thing Of The Past

Not so long ago, people used to communicate in just three ways, talking face to face, the desk based telephone and of course, posting a letter. Just 20 years later and the majority of the population now use multiple communication steams. Mobile phone, texting, IMing, Facebook, Twitter, e-mail. Communication channels these days are literally endless. How times have changed in just 20 short years.

With such a prevalence of communication channels available to us in all walks of life, you would have thought that few organisations would still be posting their business documents these days, but this is actually far from the case.

Despite most communication occurring in cyberspace these days, many out dated organisations still look to the postman to deliver their business related documents. More than 2 billion letters are delivered in the UK every year and the vast majority of Royal Mail’s daily deliveries is business related mail. If this continues, the upcoming changes to postage rates will really be hitting businesses hard.

On April 30th 2012, Royal mail will be increasing the cost of a first class stamp to 60p, a whopping 30% rise and the cost of a second class stamp will rise by 39% to 50p. Just 5p below Ofcom’s allowed ceiling price.

Businesses must think about whether old fashioned postal mail services should have a place in their modern business any more. Many companies still send financially related documents such as invoices, payslips and purchase orders by post but these huge increases in postage feeds mean that relying on old fashioned, slow methods of delivering business documents could be a very expensive mistake.

Delivering documents automatically by electronic mail allows companies to send business related documents cheaply, quickly and efficiently, without the huge costs associated with old fashioned hand delivered post. These document delivery systems can email out thousands of business documents at once, greatly reducing time consuming admin as well as high postage costs. The benefits don’t stop there, greater transparency, documents will not get “lost in the post” and improved efficiencies are also great advantages. Plus you’ll be saving on expensive printing and stationary. By integrating document management with existing finance, HR, payroll and HCM systems, the benefits are even greater.

So when postage stamps go up in price at the end of the month, will your company suck up the price rises, or will you think about more modern ways to deliver your business documents?

Further reading:

Advanced Business Solutions’s award winning software systems comprise accounting software, human resource and payroll systems, integrated with a range of document management and business intelligence systems.