mercredi 28 février 2018

février 28, 2018

How to Avoid Letting Emotions destroy your company?

We are humans and emotions control our lives. But, in the professional context, emotions and emotional decisions can destroy everything.It is not asked from you to don’t have emotions, because this is our nature. But, we need as financial decision makers to control our emotions before taking any decision that can define the future situation of the company.

Also, as a manager or any decision maker, your success depends on how you manage your financial resources. Which mean that you need to take the right decision no matter what. From this article, we will give some techniques used by the most successful leaders, that will allow you to control your emotions when you are taking a decision.

The first thing to focus on, as we say always is to have a clear plan. Follow your plan even in tough times and try to update this plan in crisis time.

Also, you must know the right time to take a step to the back. Especially, on the markets that fluctuate and flows: The economy, the real estate market, the stock market, consumer demand…etc. You must know the right time to make decision of selling or buying. 

One day you’re winning and making a lot of money, the next day you don’t seem to be able to put a foot right. It’s also a game of fine lines. One mishap here, one misjudgment there and you can go from what ‘should’ have been a highly profitable day to a big losing day,” explains Net Picks, a leading online trading system.

Koh Poh Tiong, one of successful leaders said that leaders must have the skill of emotional balance and calmness. Even in crisis times, which mean that you need to take a deep breath and think slowly. In order to make the right decision, don’t ever hurry to decide.

In addition to that, the change may be also a great solution. Try always to avoid bad situations that make you uncomfortable or choose the right people to do it.

The right people can be also, an efficient way of dealing with problems and calmness. That why you need to choose carefully you team.

Finally, try to establish a financial goal, that allow you always to be on track and check every period.

février 28, 2018

What you need to know before Investing in a Startup?

Every investor sees the profit first before putting his money anywhere. This why the startup can be a smart choice for him. Because of, the ability of growing up fast and the creative ideas of the startups.
From this article, we will try to explain to you the things that you must consider before investing in startups.

The first way to finance a startup is by the crowdfunding, which is today the smart way of financing for the company itself. But, the investor must be aware that this way won’t give him a high return. Sometimes, he can get just access to product, with no return. But, it still the best choice for investors, that need to put small personal investment, and need to compare between a lot of creative ideas.

The second thing that you need to know, before investing in a startup, is the business plan, the strategy and objectives. You must see if this startup wants to grow or stay small. Another thing, is that you need to find out how they want to market their product or service. 

After that, every investor will check the return, how much this startup need to make profit and start paying the investors back. You will be to get their business plan and strategy and you can ask the managers to explain more.

Another advice, is to invest in the founders of the startup. It is very good to have some creative ideas, but you must know how make these ideas make profit in order to get investors. Speak with them and see how much they believe in their idea, and the way that they follow to success.

The most important thing is to search by your own people, or by yourself and find out the best startup for you. Don’t invest in a startup because everyone else do. You must check everything about this startup until you start believing in the idea and business plan.

Finally, the best thing to do for your own investment, is to diversify your investment. Even in startups, try to choose some different ideas. And, always have another asset with a very low risk. This will decrease the risk and allow you to be very calm on your choices.

mardi 27 février 2018

février 27, 2018

Creative ways to finance your business

To start any business you want, you always need funds. Also, if you want to still grow up you will be asked to search for additional resources. Even, if you are financing your business from your pockets. Sometimes, it is not enough, or it is better to choose another way to finance it. And, put your money somewhere else.

That is why, we are trying on this article to give some creative ways of financing your business.

  • Crowdfunding:

Starting with the crowdfunding, which is a very important mean of financing today. It is the ability to take friend’s or stranger’s money and use it to finance your creative business.
This way is very great and easy to get, you need just a creative business plan. But, the problem is that you can’t raise a lot of money and it is just for the short-term use.

  • Attract investors:

This is a very important way of financing. And specially, for capital expansion. But, you won’t be able to attract investors without having a clear business plan. That include a clear vison and objective.
Also, you must be able to present all the information for your investors and convince them to invest in your business the way you see it.
This investment is based on the future situation of the business. That why, your potential investors must know that your business is going to make money for them. That you are going to grow up. You need to communicate all your statements with them and explain your objectives to them.
And, be sure that having more investors on your business mean more money and more opportunities of investments.

  • Family & Friends:

Don’t be shy to ask, this is a business and you will be able in a brief time to give it back. Because, a lot of successful business started for friends and families’ contribution. Consider your friends as potential investors and explain to them your strategy and objectives.
After that, make them believe that your able to make for them profit. Also, you can give them shares to protect their interest.

  • Get a Microloan

With the new complexities and standards that banks made on the loans. You can consider going to the microlender or even commercial banks. They won’t bother lending a microloan.
The problem is that the microloan can be useful just for a short-term or for a small business. But, at least it is very easy to get. Whatever, it stays the best choice for new startups and new entrepreneurs.

Finally, the best thing to do before asking for funds and searching for the effective way of financing, is to make a solid business plan. That clarify all your objectives and strategies.
Just by this business plan, you will see that a lot of doors are open for you and you will have to choose between them.

samedi 24 février 2018

février 24, 2018

What are the primary Goals of the Financial Management?

Every company on the actual economic situation, must have a finance strategy. Which is the only function that allows businesses to take advantage of opportunities to grow, get the best loans rate and benefit from the best loans rate, salaries information and the optimization of income taxes.

Today, we are speaking under the function of finance about a process of managing the financial information of any company. This process is the Financial management, which focus on planning, organization, controlling the company’s financial resources and managing the risks.

In addition to that, the financial management aim to see the big picture of the actual situation, optimize the future situation and maximize the profit by managing the financial resources. Because the success of the company depends on the financial efficiencies of every operation.

First, and in order to have a great financial management. You must adapt an efficient planning process. That allow the company to manage the actual cash flows, by anticipating the future ones. Also, it ensures that the company will also be stable, and anticipate any financial problem that can make the entire system go down.

After that, every company must know its risks and anticipate the operational and strategic risks. It is a very important to measure the risks, and recruit people that master the risk management skill.  Also, with actual development, you can use insurance and automated financial management systems that will the company to reduce and control its risks.

Finally, we can’t speak about an efficient financial management without controlling the outcomes. And, to know the distance to achieve the goals. That is why it is needed to fix some mid-term objectives, to have a better control of the whole situation.

mardi 20 février 2018

février 20, 2018

Why Finance is too important within business?

We can’t imagine having a business without finance. Whether you need it to achieve your company’s goals, to pay your taxes, or even to follow your financial situation.

Finance is the only function that allows businesses to take advantage of opportunities to grow, get the best loans rate and benefit from the best loans rate, salaries information and the optimization of income taxes.

Also, the strategic use of financial instruments, like loans and investments, is the key to the success of every business. And, such as revenues from business operations, and investor finances such as owner’s, partner’s or venture capital, and loans from individuals or financial institutions.

In addition to that, all businesses need finances for their daily operations and to meet essential expenses and payments.
Beside all of that, the finance is the process of creating, moving and using money. Which allow businesses to enable the flow of money through the company and facilitate the management of cash flows.

Today, with the actual economic situation and with all these crisis, it is absolutely impossible to achieve any company’s long-term and short-term goals without effectively managing your finances. 

Because of the importance of business finance and funds for your growth and market competition. You can find more here: What you need to know about Business Financing?

Also, finance allows you to cover your risks by managing all your insurances: insurance for accidents, insurance for vehicles, insurance for motors.

Every company’s owner has a vision for his company, that must give a priority to the use of financial resources. In order to manage well your resources, then your expenses and anticipate your loss or profit.



vendredi 16 février 2018

février 16, 2018

The mining industry: Facts & Damages

o Mining Facts

o The mining industry trends

o Damages of the mining industry

1. Mining Facts:
Last year was undoubtedly challenging for the mining sector. A 25% year-on-year decline in commodity prices meant mining companies had to ratchet up their productivity efforts, while some found themselves in a fight for survival, with asset disposals and closures to follow.

Shareholders are persisting with a short-term focus, impacting the capital available for investment and, as a result, constraining options for growth. Investors punished the Top 40 for poor investment and capital management decisions and, in some quarters, for squandering the benefits of the boom. There are also concerns over the 'spot mentality' from shareholders focused on fluctuating commodities prices and short term returns rather than the long-term investment horizon required in mining.

With a further $53 billion of impairments in 2015, miners have now collectively wiped out the equivalent of 32% of their actual capex since 2010, a stark reminder of the value that has already been lost. The level of impairments since 2010 points to a lack of capital discipline in the boom years. The focus was on production at the expense of more rigorous investment assessments3

Whilst China is still critical to the success of the industry, accounting for approximately 40% of overall commodity demand, it can no longer be relied on to supercharge returns. As the country moves from a manufacturing based economy to a services-based economy the previously rampant demand for commodities will not resume with the same intensity.

Debt management has moved to the top of the business agenda for many. For some, the driver was maintaining access to capital at reasonable rates. For others, it was simply crucial to survival.

We’ve been encouraged by some recent recoveries in market capitalizations and commodity prices – but with high volatility still in play, hopes of a sustained rebound are tempered.

Whilst the industry continues to face significant market challenges and constraints, many of the world’s biggest mining companies appreciate what is required for the marathon of mining and have their eyes firmly fixed on the long-term rewards.

Despite all of that, the mining sector has a lot of challenges like:

✓ Sustainable Cost Reduction in the Mining Sector

✓ Complying with regulatory & reporting requirements

✓ Addressing sustainability issues

✓ Recruiting and retaining a skilled workforce.

2. The mining industry trends:
Despite the dilemmas in recent years, which continue to persist, emerging trends in the mining industry may offer solutions — or at least opportunities for improvement industry-wide.

Although underground mining was the dominating technique during the 20th century, mine production is undergoing a significant shift to open pit mining. This surface mining technique involves the extraction of minerals by way of an open pit, which does not require tunneling as older extractive methods. Today, the majority of operations industry wide are producing using the open pit technique. The ICMM reports that, “Technological developments have made it possible to mine ores of declining grades and more complex mineralogy without increasing costs.”

In addition to the transition of extraction methods from underground to open pit mining, extraction activities are becoming more economical and innovative. The ICMM forecasts that many mining companies will focus on extraction activities that are later in the chain of production, such as smelting, refining, manufacturing and commodity trading. “This trend is already visible in the number of steel companies seeking to enter mining to secure their supplies of iron ore and coking coal at reasonable cost.”

Commercial industries across the board, including mining, are focusing on applying new technologies and methods to their processes in order to reduce energy consumption and cultivate their renewable energy sources. This trend is so widespread, not just because of the environmental benefit, but also because many companies have seen significant cost savings by implementing renewable energy. In Deloitte’s report on the mining industry trends of 2016, it was noted that, “Some miners have realized energy savings of 10% to 40% by investing in renewable energy installations, deploying innovative energy technologies and driving towards more automated mine processes to optimize energy consumption.”

Several modern technologies create a huge potential for a positive shift in the trajectory of the global mining industry. These include data collection and sharing via cloud-based networks, machine learning to reduce labor costs, genomic mining solutions, wearable technologies, and even hybrid airships to more easily transport equipment to remote regions. Mining companies must determine their focus, develop strategies, and align their systems and processes to generate the benefits from innovation. This requires collaborative ecosystems, digital engagement of their workforce, strengthened asset management, process alignment with energy availability, and the use of production-ready technology.

The needs of mining and mineral exploration companies closely overlap with the oil and gas industries in some key ways, such as the type of facilities needed to support operations. Fabric structures for storage, maintenance, and employee accommodation are less expensive and more sustainable than traditional brick-and-mortar buildings, which is why the oil and gas industries often choose these structures for their operations. For the mining industry, fabric buildings provide an innovative, highly-durable option for conveyor enclosures, worksite camps, and mining buildings.

“In 2010, the U.S. was more than 50 percent dependent on other countries for 43 of 67 commodities tracked by the U.S. Geological Survey, [and yet] there is an emerging trend toward mineral nationalism and restrictive trade policies. This could make the U.S. vulnerable to shortages in critical and strategic commodities,” noted a National Mining Association report. Deloitte’s report maintained this concern, as the U.S. government’s intervention in China’s economic system may jeopardize its ability to fund growth programs for the mining industry, however necessary intervention may become based on China’s struggling domestic market trends.

Despite the consistently low commodity prices, unresolved challenges and continued struggles that the mining industry faces, these emerging trends show plenty of opportunity for growth and improvement. An innovative approach to each of these issues, from lack of financing to safety and security challenges, to managing the new normal in workforce trends and the volatile commodities market in general, is required if the industry is to continue sustainably.

3. Damages of the mining industry: 

Stationary Sources: The main gaseous emissions originate from the combustion of Fuels in power generation facilities, drying, Roasting and melting. Many producers of precious metals melt the metal on before shipping it to off-site refineries. In general, gold and silver are Products in melting furnaces that can produce high levels of mercury in Air, arsenic, sulfur dioxide and other metals. Fugitive emissions: The US Environmental Protection Agency (EPA) defines' fugitive emissions' as' those emissions which could no treasonably pass through piping, chimney, orifice or other openings with equivalent function ". Common sources of fugitive emissions include: Storage and handling of materials; Mine processing; The fugitive dust, Slaughter, construction activities and galleries associated with mining activities; the Leach cushions and piles of mineral residues and settling ponds; and the Heap of rocky waste. Sources and characteristics of dust emissions Fugitive in mining operations vary in each case; the same is true for their impacts. Impacts are difficult to predict and calculate but should be considered as they could be an important source of hazardous air pollutants. Noise and vibration: Noise pollution associated with mining can Include noise from vehicle engines, and other sources. The cumulative impact of mechanical shovels, re-Drilling, blasting, transport, crushing, grinding and in large quantities can significantly affect wildlife Resident relatives. Vibrations are associated with many types of equipment Used in mining, but explosive slaughter is considered to be the most important source. Vibration affects the stability of infrastructure, buildings and the homes of people living near the operations of large mines to sky. Women may be particularly vulnerable to the toxic effects of minerals Extracts from mines given the changes that occur in their bodies during of the different cycles of their lives, Metals that tend to Bone such as lead, cadmium, aluminum and mercury are transported In the body in the same way as calcium. The increase in calcium requirements of the woman during growth, pregnancy, breastfeeding and menopause risks releasing.

  1. Breaking New Ground, Mining, Minerals, and Sustainable Development. 2002. The Report of the MMSD Project. London and Sterling, Earthscan Publications.

dimanche 11 février 2018

février 11, 2018

What you need to know about Business Financing

  • Introduction 
  • What Is the Meaning of Business Finance? 
  • Importance of Business Financing 
  • Conclusion 
  • References 

The business finance term includes many activities & disciplines that allows you to manage your company’s money and its assets.

In addition to that, the term of business finance can be teched to students in the universities in order to familiarize them with all the accounting methodologies, debt management and effective investing strategies.

Also, even small businesses owners must know all the principles of finance to make more profit and avoid the bankrupt.

What Is the Meaning of Business Finance?
Starting with the term of financing, which mean simply the method of bringing money to the organizations. Every business must be financed, and the smart manager is the one that can choose the best way to finance his company or organization, depending on the advantages, disadvantages of every method. This way can be even taking on debt or even financing through equity investment and the earning income from products.

Well management of loans and debts can help the company to have a flexible cash flows. But, there is an elevated risk to take. Also, the great reputation can allow companies to get a considerable and large amount. Which mean more investments then more profit. In addition to that, high reputation means lower interests rates and more payments facilities.

On the other hand, there are other methods of financing by the stock market or selling the shares to the public. And this is what we call it “the Equity Financing”.

Finally, all this financing methods must be used by experts and with caution. In order to be sure of the continuation of the company’s performance. And to avoid being bankrupt very easily.

Importance of Business Financing:
On the actual context of business, we can’t speak about a manager of any organization that doesn’t know the financing method that can give him a higher profit. Knowing the best way of financing business on the right time allow every organization to keep investing, keep working and control its cash flows.

Also, the most company’s strategies and business plans start with the idea of growing and growing. Using the right way of financing make this dream true.

But, as I said earlier, these methods can be dangerous sometimes for some organizations. Which make us back to the previous idea, always have experts inside the company and don’t hesitate to ask for help.

Every company and businessman knows that it's not enough to do a lot of math, especially in the present economic crises in the United States and the United Kingdom. Everyone 
has to understand a lot of business terms that optimize the process of making money.

Unfortunately, most businessmen are too busy calculating profit and losses to pay attention to significant terms that can help them manage their business better and attract more customers.

Finally, I just want to say that there are four business terms each businessman should know by heart: marketing, economics, finance, and business. In order to know how to handle their business more effectively.

  • Difference Between Business and Finance | Difference Between 
  • 4 Ways to Finance Your Business| 
  • Meaning business finance |


authorMy name is Saad Belharrar, I have a master in Finance & Auditing. I love writing and I hope to give you something special on USFINANCE.COM
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