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Business Grants

One of the frequent questions we get is regarding business grants. In short, it is extremely difficult to get a business grant given that most government institutions and not-for-profit institutions are not looking to provide free capital to an individual that is going to be using this money with the intent to generate a for-profit business. Most grants that are available to the general public or business public are geared towards individuals that are going to be engaged in a public-private partnership, or similar initiative. If an entrepreneur is looking to raise capital through a grant then they are going to need to be very aware of the terms of the granting institution. Primarily, these grants are geared towards minority owned businesses, woman-owned businesses, and for companies that are engaging in a project that will have a benefit to the community. If an individual is simply looking for free money to start a for-profit business that it may be in their best interest to examine working with private investors, obtaining a small business administration loan, or seeking conventional business funding in order to launch their business operations.

Some granting institutions to require that a business plan is submitted before they render a decision as to whether or not to disperse funds. The business plans are available on this website are appropriate to be used in conjunction with a grant focused funding application. Within the purchased package, there are a number of instructions that will show you how to effectively retool the business plan so that it is appropriate specific for granting institution. It should be noted that many grant applications do have very specific terms and a syllabus that must be followed exactly before the application will be considered. It is very important that a third-party grant writing firm is hired in order to ensure that the documentation provided is in line with that as requested by the granting institution. Again, if this is going to be specific for a for-profit business that has no other intention than to generate income for its owners it may be more applicable to try to have a business plan that is appropriate for both investors as well as granting institutions. This is something that you continue to discuss throughout the life of this business on the website.

There are a number of government programs available to certain entrepreneurs are looking to develop for-profit businesses. It should be noted that there are some companies out there that provide grant search assistance to these entrepreneurs, but this should be done very carefully as many of these firms will take substantial upfront fees without ever providing any meaningful results as it relates to finding an institution that is willing to provide certain amount of capital for entrepreneurial activities. Before engaging any grant search firm or grant writing firm, an examination of their background, history, and obtaining reviews from previous clients should be used so that you can be assured that you’re working with a reputable firm. As the Internet has a number of different service providers available for any given type of service, it is imperative that any potential company is thoroughly examined with due diligence before you engage him to complete any type of grant writing service.

Bootstrapping a Business

One of the most common ways that a new business is started his by a direct investment from the owner. This is commonly known as bootstrapping especially if the entrepreneur is working on a very small budget in order to get the business up and running. While this may be a struggle in the beginning stages of the business, the benefits for bootstrapping or self funding a business are tremendous.

Foremost, the owners able to start the business completely with their own capital and they are going to be able to retain a 100% ownership interest as the business grows. If the owner is able to bring the business to profitability within a two-year period than they are going to be an excellent candidate for a business loan away working capital line of credit for expansion purposes. This eliminates the need for a private investor which would dilute the ownership interest of the business substantially.

Most banks and lenders are very receptive to providing capital to companies that have been in profitable operation for a two-year period. As we discussed throughout this website, there are a number of different loans and start fund financing available for start up businesses, but they do come at a price and there these are only available for specific industries. For companies that require a substantial amount of working capital, most banks and lenders are not willing to provide this money and that it is for something like a professional practice including doctors, lawyers, accountants, or other individuals that a hold  professional license to practice.

One of the other benefits to using your own capital start a business is that when it does come time to raise capital – even if you need funding from a private investor – the terms which will receive the funding will be substantially better than that of when you’re startup business. Companies that are operational in profitable already have a substantial amount of value built into the company – and as such, they can negotiate a much lower ownership interest in the business among a private funding source. Most importantly, this will allow the entrepreneur to obtain substantial control over their company even in the event where things do not go as planned and the private funding source need some additional capital. This is going to be one of the key things that we discuss on a continuous basis throughout this website at his as it is a topic that we are frequently asked about on an ongoing basis.

Bootstrapping a business or using owner provided funds for company also allows these companies to grow at a much quicker pace given that less time is allocated towards having the source capital. Smartly, many technology businesses rely significantly on the talents of their owners and related companies are able to start their businesses for a very low cost. As such, if your business does not require substantial amount of startup capital and it may be in your best interest to use your own funds in order to get things up and going before you seek outside capital.

One of the ways that entrepreneurs will frequently fund their business with is through the use of credit cards. This is an expensive option for most entrepreneurs given that most credit cards are unsecured and have an annualized interest rate ranging anywhere from 10% all the way to nearly 30%. As such, unless the entrepreneur is able to generate substantial amounts of revenue from the usage of buying assets via a credit card and is typically in the best interest to you savings or other types of capital in order to fund business operations. In some cases, retirement phone funds can be used for this establishment of a new business. However, there are a significant number of considerations that need to be put in place if the individual is going to use retirement funds from a 401(k) or individual retirement account. This is primarily due to the fact that there are tax consequences with using funds from these accounts. As such, if an entrepreneur does intend to use funds from a retirement account and they absolutely need to speak with a certified public accountant in order to ensure that they are remaining within the letter of the law as it relates to the removal of these funds. Your account when were related professional may need to establish a new account or file appropriate paperwork in order to showcase the fact that the money being used from a retirement account is being used for a qualified purpose. As always, if you intend to start a new business then you should always consult with a certified public accountant, lawyer, and related professionals before engaging in any activity as they do have varying tax consequences.

In conclusion, bootstrapping a new company can be when a rewarding experience or sport newer given that they did not need any outside capital in order to bring the business to profitability. It also provides a significant advantage as it relates to raising capital down the road given that the terms that are going to be offered are going to be much better than when the business was just a concept or start up.

Attorneys and Small Businesses

One of the most important people you can have when developing a new business is an attorney. Certainly, the entire focus of this website has been and will continue to be on business planning needs but having an attorney by your side will ensure that you are operating within the letter of the law as you develop your business and as you progress through your business operations. An attorney is especially important if you are raising capital from the private investor or a number of angel investors.

Foremost, these types of activities can fall within the realm of securities laws. As such, an attorney can assist you in determining whether or not your capital raising activities need to be examined by a state and the federal regulatory agencies overseeing the sale of securities. There are a number of safe harbor rules and other regulations allow for the sale of private securities without having to go through an extensive registration process, but only an attorney is qualified to make that determination on your behalf. Most business attorneys are able to properly examine these issues and provide you with qualified legal advice as it relates to your capital raising operations. In some cases, and as we have discussed throughout this website, you may need a private placement memorandum in order to ensure that investors understand all the risks that are associated with providing capital to your business.

Beyond the startup phases of your business, an attorney can assist you with ongoing legal questions that may arise as you conduct revenue generating activities. This is especially true if you operate within a heavily regulated industries such as finance, healthcare, telecommunications, or specialized online based businesses. Your attorney will be an invaluable source of information as well as it relates to general business operations. Most lawyers have extensive training in regards to thinking strategically, and they can not only provide you legal advice but business advice as well. Of course, billable hours by lawyers are very expensive she may want to keep these down to a minimum but they can be very helpful if you are formulating a new strategy as it relates to providing a new product in the market.

Often, your attorney will work very closely with your certified public accountant to make sure that your business operations fall completely within the letter of the law only from an operating perspective but also from a financial perspective as well. Some entrepreneurs opt to hire a tax attorney who can provide them with both advice regarding the general operations of business coupled with insights as it relates to the company’s financial operations. Most tax attorneys are very expensive, and only large-scale small business were medium-size corporation typically retains a tax attorney on an ongoing basis. On an ongoing basis, we are going to discuss the professionals that you’re going to need to hire not only during the start of phases of your business but also as you progress through expanding and developing her operations.

As it relates to startup functions, your attorney can assist you not only in developing a business plan but also developing the operating agreement that may be required if you are starting a limited liability company. Most attorneys also will provide services as it relates to registering a corporation or a limited liability company. In some cases, your attorney’s office can also double as a registered agent. However, make sure your attorney provide the service before you list their address as the service of process address on any incorporation forms that you are producing.

In closing, your attorney can be a great ally as it relates to the development and expansion of your business on an ongoing basis. You can estimate that on a yearly basis attorneys fees will generally run about 4% of the revenues generated by your company. However, for certain smaller businesses feel advice may just be needed on the incidental basis but it is always good to have an attorney on retainer in case an important matter needs to be discussed.

Asset Based Lending

Asset-based lending has become very popular over the past 10 years given that it is a low-risk form of investment for many financial institutions. There are a number of different businesses that are very heavily asset focused including real estate businesses, retail companies, automotive businesses, and other enterprises that are actively engaged with the buying and selling of actual tangible goods or property. Most lenders are very receptive to providing capital for these types of businesses given that they are able to almost fully collateralize their loan with the assets that are being purchased. As such, many businesses that are in the startup phase of their operation are able to receive a significant amount of capital support from a bank, credit union, or similar financial institution given that this is considered a low-risk form of lending for these companies. Of course, a business plan is going to still be required given that these companies are going to want to see the types of assets being purchased and sold on an ongoing basis.

This business plan should be a comprehensive document that follows a three-year to five year time frame in order to showcase exactly how these funds will be used as the principal balance is being paid down. The interest rates that are associated with asset-based lending are typically lower than that of a company that may need just a working capital line credit in order to develop or expand their operations.

There are a number of independent asset-based lenders that operate not in the capacity of a bank or traditional financial institution. These lenders often acquire a large-scale line of credit and in turn provide loans to individuals who are looking to purchase specific types of assets. These types of lenders are very popular among automotive lenders as well as companies that engage in the buying, rehabilitation, and sale of real estate. Given again the low-risk nature of this type of lending – a number of independent agents have entered the market with these types of financial products. These companies typically make their money not only from the interest charged on an ongoing basis, but also from upfront fees that are associated with originating loan.

Of course, a certified public accountant should always be brought into the loop when determining whether or not these types of debt instruments are appropriate for any specific type of business venture. Most importantly, the CPA can also provide the entrepreneur with a depreciation schedule in order to make sure that the tax consequences and tax liabilities associated with buying and selling the assets using an asset-based loan are appropriate even with the entrepreneur is seeking to accomplish. The CPA should always be involved with any major business decision as it will provide a significant amount of insight as to the day-to-day operations of any business and any tax liabilities that may be accruing due to entrepreneurial activities.

For startup business – an asset-based loan may be the way to go given the relative ease in which they can be acquired. Additionally, many asset-based lenders will provide capital against an established asset such as a home in order to provide capital for startup business that is not necessarily going to be doing a lot of trading in tangible goods. Other alternatives include using a home-equity line of credit in order to fund entrepreneurial ventures, but this does come with some risk.

After the Business Plan is Completed

One of the frequent questions that we often receive here is what to do with the business plan once it is complete. At this point you are probably invested tens of hours if not hundreds of hours into the development of your business plan in regards to showcasing what you’re looking to do, how much money you’re looking to raise, and with the anticipated financial results of the business will be over a three-year period. You have put your blood, sweat, and tears into this document and now you are about to begin the capital raising process. This is usually one of the more anxiety provoking parts of the of starting a business given that you are actively seeking funding in order to buy the assets to start your company’s operations.

First, once the business plan is complete it is imperative that is what is reviewed by a certified public accountant. This professional will review the business plan, make notations regarding the financials, and make sure that any financial statements within the document or in line with generally accepted accounting principles. This is important to note as many banks as well as investors are going to want to thoroughly review the financials before they render a lending or an investment decision for your business. One of the important things that the CPA will do as well will be to make sure that the financial model that you developed falls in line with industry standards. Many banks will often compare financial models produced by individual entrepreneurs to existing databases of similar companies. As such, it is important to showcase any potential revenues, expenses, and profits that are in line with other companies that operate within identical or substantially similar industries. If you are having trouble with this aspect of your business plan then you can hire a consultant that will allow you  to see sample financial statements of similar businesses within the market. The United States Economic Census provide this information for free on their website. A CPA will properly advise you as to what potential changes may be needed once they have reviewed the document. This professional can also compare your company to other similar businesses in the market.

If you are raising capital from an investor and you are also going to need to retain an attorney in addition to your CPA. Your attorney can review any terms that you outlined in regards to the business plan as it relates to an equity share or profit share. Additionally, your attorney can also develop the investment contract that will be needed between you and any potential funding source. This is often where many people get themselves into trouble given that many new entrepreneurs will raise capital from friends and family via alone or as a small investment. Even if you are raising capital from people close to you – it is important that you have an attorney develop the contract so that any discrepancies or issues that arise can be remedied through appropriate legal means. If you’re looking to raise a substantial amount of money from a number of different investors and an attorney can also draft a private placement memorandum for you as this may be required by your state as well as the federal government. Only a qualified attorney who has extensive experience in the field of securities law can make a determination as to whether or not your business is going to need to have a private placement memorandum. These documents are usually used when individual shares are going to be sold directly to investors on a private basis. This is important to note as there are also companies known as private placement brokers that can assist in entrepreneur with raising the capital they need once the private placement is complete. On a side note, a private placement memorandum or PPM is expensive. Most entrepreneurs report that they have spent somewhere in the neighborhood of $4,000 to $10,000 on having a qualified securities attorney develop this documentation on their behalf. As such, it prior to developing a business plan specific for a number of investors and entrepreneurs to determine whether or not they are prepared to take on the expense of having a private placement memorandum drafted in order to raise capital from a number of different investors. If the entrepreneur is planning to raise capital from a venture capital group or a private equity group as a single investor and usually a private placement memorandum is not needed. However, and again – only did qualified attorney can make this determination for you.

Once you have submitted the business plan to a CPA as well as an attorney, you may want to hire a business consultant to review the business plan so that they can read as if they were the investor. This individual can provide you with substantial notes as to what they see is a strong aspect of the document as well as what some of the negatives are. It is important to get as much feedback as possible from qualified business consultants, other entrepreneurs, and executives that have familiarity with the industry and that they will able to provide you with advice that appropriately guides for business development. Of course, any advice should be taken with a grain of salt. This is especially true among colleagues that may be reviewing the business plan alongside you. One of the other things that you may need to know within when having the business plan reviewed is whether or not you’re coming off with a good sense of clarity as to what your business is looking to achieve with the capital you are looking to raise. This is one of the common issues that many people have when they are developing their own business plan. As such, it is important that a number of people read it so that you get as much feedback as possible. At times this can be discouraging for many entrepreneurs as they will often receive feedback that they don’t want to hear regards to business risks for the overall business climate. However, if taken appropriately then this criticism can be reviewed constructively and improvements to the business plan can be made on an ongoing basis.

There are also a number of not-for-profit organizations that can assist you in developing your business plan or keeping the business plan once it is done. SCORE is a popular organization of retired entrepreneurs and executives that helps newer entrepreneurs and younger entrepreneurs with the development of their entrepreneurial activities. While these executives and entrepreneurs are a very good source of feedback in regards to a business plan they can operate a little bit slowly as it is done for free, part-time basis only. A paid consultant typically will provide you with much more in-depth insight as to what made be needed to your completed business plan.

In short, capital raising is an extremely difficult process and you’re going to need to remain very diligent as there can be heartaches and setbacks throughout the process. It is important to note that only you can make the appropriate determination as to whether or not your business is economically viable and should seek funding. The above the professionals can only advise you as to whether or not the business plan is appropriate to reviewed by a potential funding source.

A Bank Loan Versus an Investor

One of their frequent questions that we get is what are the primary differences between sourcing capital from an investor force versus sourcing capital from a banking institution. First, as it relates to banks these companies are in the business of providing loans. They want to see that the amount of money that they are going to lend to the individual is going to be repaid and will be fully collateralized by assets are being purchased. A very common example of this is a mortgage where a bank lends an individual money to purchase an income producing property with the intent of having the property service collateral and the income generated from rental serving as the income to repay the financial instrument. At the end of the day the bank is not receiving an equity interest in the business and they will not participate in the capital appreciation. For instance, if a real estate investor seeks to purchase a one million-dollar property then they will typically put $200,000 down and borrow the remaining $800,000 via a 30 year mortgage. As the mortgage is paid down and as the property appreciates in value the bank only continues to receive the monthly interest and principal payments that was agreed to by the borrower.

Conversely, if that same real estate investor wants to source the money from a private investor and typically the investors going to want a percentage share of the equity based on how much money they are contributing. In this case, an investor could put the hundred thousand dollars and set up a mortgage and they would receive an 80% ownership stake in the business. One of the reasons why many people will source capital for a bank rather than investor is simply so that they are able to control the amount of income that they are receiving. Additionally, the conservative use of borrowed funds allows for the amplification of a return on investment. Returning to our example above, let’s assume that the real estate investor has the entire $1 million of capital on their own. A generous capitalization rate for income producing property is about 10%. As such, in a scenario where the entrepreneur purchases the billing out right they will receive a 10% return on investment each year. However, by borrowing the funds with a significant down payment this return on investment is amplified four times given that the income produced is not only covering the mortgage but it’s also producing a significant amount of income as it relates to the down payment. This is one of the reasons why many individuals will seek to borrow funds before they approach a private investor. Of course, one of the key elements to borrowing funds that the individual must have an appropriate down payment as well as a credit score that satisfies the bank. These days a FICO score of 700 is typically the minimum credit score that is accepted by most financial institutions as it relates to lending.

As it relates to credit scores, most investors do not care too much about this aspect of an individual’s personal life. However, some investors do want to see that the individual is not marred with debt or has significant other financial problems before they provide the capital necessary to launch or expand a business venture. An entrepreneur that has significant financial issues typically will be focusing significantly on that and not the continued expansion of their business operations. As such, if an individual is approaching investors for a project and they can expect that a financial partner would one understand the personal financial situation before going to business with them.

One of the other things that needs to be made aware of is that when you are working with investors is that they are going to want a significant amount of equity as well as a significant amount of control over the business. This is especially true when working with investors like venture capital firms and private equity groups that almost always taking majority interest in the business. In the event that things do not go as planned these organizations will typically take control of the business and throw out the original entrepreneur. This is one of the ongoing risks associated with working with a private equity group or venture capital firm. Additionally, for very large investments it will typically want to have several seats on the board of directors. This ensures that they are able to continually oversee their investment and make any adjustments to management as needed if things are not going as planned. As such, it is important that an entrepreneur that is seeking venture capital for a in injection for private equity group retain a qualified attorney so that the entrepreneur is aware of all the clauses associated with the investment. This is one of the key issues that entrepreneurs can have when they are so hungry for the actual money that they forget that they need to be able to make sure that what they’re doing is economically viable. If one venture capital group is likely to put up funding for a specific project and it is also likely that several others are willing to as well given the very low capital rate of successfully raising money.

In closing, it is far easier for an entrepreneur to work with a lending institution given that the terms of repayment are usually flexible and are easy to deal with. Investors have significant expectations as it relates to returns on investment and expanding operations. As such, all these factors into aide when determining whether or not to raise capital from bank or from a private funding source.

Home Healthcare Agency SWOT Analysis

Home healthcare agencies are businesses that are completely insulated from negative changes in the economy. This is due to the fact that people that are elderly or have disabilities require ongoing and constant care on a day-to-day basis. Most importantly, and one of the key strengths for a home healthcare agency is that they are always able to remain profitable and cash flow positive. These businesses are able to generate revenue directly from patients, public as well as private insurance. While there have been some issues with the reimbursement rates that are associated with in-home care, the demand among families to have proper nurses and aides can disabled family member is substantial.

As such, these businesses are able to produce very high gross margin income while not having to maintain a substantial overhead cost. The gross margins generated 5% depending on whether or not bad debt expense is factored into the cost of goods sold. These businesses do have moderate barriers to entry given that licenses from the state as well as the federal government are required in order to render the services to the general public. It should be immediately noted that there are some companies operate in a non-medical capacity, which allows them to operate with a limited amount of licensure. A qualified attorney should hired to ensure that the home care agency is operating within the letter of the lot all times. The startup costs for this type of business typically ranges anywhere from $25,000 to $100,000 depending on the number of people that are going to be on staff at the onset of operations.

As it relates to weaknesses, despite the fact that these businesses are highly immune from negative changes in the economy – there are a number of issues that arise from operating this type of business. Foremost, a substantial amount of compliance needs to be adhered to at all times given the nature of this work. Large-scale malpractice and liability policies need to be put in place in the event of an on-site accident. Additionally, depending on the nature of the home healthcare agency – personnel expenses can be very high. This is especially true if the agency is going to be providing skilled nursing services. within any given market there is usually a substantial amount of competition in this field.

As it relates opportunities, there are numerous ways in which a home healthcare agency can boost its revenues. Foremost, these businesses can hire additional nurses, certified medical assistants, and certified nursing assistants to render a larger degree of services within the target market. Some healthcare agencies also expand by simply acquiring similar businesses that are already in operation. Home healthcare agencies typically have substantial access to capital given that they are able to produce highly predictable streams of revenue on a month-to-month basis while concurrently being able to generate income from publicly funded healthcare sources from time to time. One of the common trends within this industry is to offer non-emergency medical transportation services, which can drastically boost the revenues of any home healthcare agency.

For threats, as this is a healthcare focused business there are a number of issues that can cause substantial damage to the business. As mentioned above, malpractice or injury can cause a significant number of lawsuits to accrue. Additionally, changes in political policy – especially as it relates to reimbursement rates – can have an impact on a company’s profit and loss statement. As such, an entrepreneur that enters this field needs to keep a very tight control on all underlying expenses in the event that certain reimbursement rates are reduced.

Home healthcare agencies are going to continue to remain in strong demand especially as the baby boomer population ages. Almost 44 million people within the United States are required to care for an elderly person or disabled person on a day-to-day basis. This number is expected to increase significantly over the next twenty years. As such, a home healthcare agency can be a highly lucrative small business opportunity that has substantial growth potential over the next two decades.

Clothing Store SWOT Analysis

Clothing stores remain as one of the few retail businesses that will continue to operate in a brick-and-mortar capacity despite the substantial increases in e-commerce. This is primarily due to the fact that people want to try on clothing before they make a purchase. This is one of the key strengths for this type of business. The startup costs associated with the new clothing store are relatively low in these businesses can be started for $50,000 to $100,000 depending on the location and the amount of inventory that will be carried at the onset of operations. It should be noted that many manufacturers will provide clothing inventories on a credit basis in order to reduce the amount of startup costs that are required by a clothing store entrepreneur. The gross margins from sales for these types of businesses is significant. Most clothing stores have gross profits that range anywhere from 40% to 70% of aggregate revenues. One of the other key strengths associated with these businesses is that they are highly scalable. Once the initial location becomes profitable, a clothing store entrepreneur can easily establish additional locations.

As relates to weaknesses, clothing stores do have moderately high operating costs given at an expensive retail facility must be being maintained along with a large staff. These expenses must be kept heavily controlled especially given the fact that clothing stores are also subject to economic fluctuation. During times of economic recession, most clothing stores do experience a moderate decline in the amount of revenue that they generate on a month-to-month basis. As such, a qualified entrepreneur is going to need to make sure that all unnecessary expenses are trimmed from a clothing stores annual budget.

As it relates to opportunities, clothing stores can again expand by simply establishing additional locations. Most financial institutions are willing to provide a working capital line of credit or business loan secured by the inventory and predictable revenue streams of the business. Many clothing stores also establish substantial online presences via a proprietary website while concurrently maintaining a presence on Facebook, Twitter, and Instagram. This is especially important as people may come directly to the clothing store and then ultimately make their purchase online. Having a large-scale online presence is an absolute necessity for any clothing store entrepreneur.

As it relates to threats, outside of a major economic recession there is no otherwise direct threat outside a competition. The clothing store must find ways to differentiate themselves from other retailers in the market. This is usually accomplished by sourcing unique apparel from a number of different manufacturers so that customers can try on a number of different types of clothing from one location. There are no pieces of pending legislation or regulation that would substantially impact the way the clothing store conducts their operations.

Clothing stores will remain popular for the foreseeable future. Again, with the rise in e-commerce – brick-and-mortar clothing retailers have had to find ways to differentiate themselves from online sellers. This includes providing outstanding level of service that is not able to provided in an online capacity. For an entrepreneur that is very well familiar with how a retail store operates, a clothing store can be a highly lucrative small business enterprise that is readily scalable.

Vape Shop SWOT Analysis

Over the past five years, vape shops have become very popular businesses as more and more people seek to stop smoking traditional cigarettes. Although the taping is not exactly the most healthy thing that a person can do, it is believed that it is far better than smoking tobacco cigarettes. As such, these businesses have exploded in demand for electronic cigarettes and related products. The startup costs associated with the new vape shop are relatively low, and these businesses can be founded for as little as $50,000 was much as $150,000 depending on the location and the amount of inventory that is going to be carried. One of the key strengths related to these businesses is that they typically are able to generate a substantial repeat customer base once they establish operations. The gross margins from sales ranges from 50% to 70% depending on the specific products offered by the business.

As it relates to weaknesses, vape shops are required to adhere to all laws as it relates the sale of tobacco and tobacco-related products. As such, procedures and protocols need to be put in place in order to prevent people under the state minimum age from purchasing these products. The retail sales space associated with these businesses can also be somewhat of a high expense especially in a highly trafficked area.

For opportunities, these businesses can readily expand by simply establishing additional locations outside of the initial target market. For vape shops, this is typically the only way that these businesses are able to expand and less the business develops an online platform. It should be noted that only certain products relating to this product line can be offered in an online capacity as per regulation.

For threats, outside of major competitive issues are is really nothing that is going to impact the way that these businesses conduct their operations. Of course, strong procedures need to be put in place in order to ensure that the business is able to remain within the letter of the law at all times. During times of economic recession, most vape shops are able to remain profitable and cash flow positive is this is typically considered a product that is part of a person’s lifestyle. Additionally, this is a relatively low cost product line that is in continued demand among the general public.

Vape shops can be a highly profitable small business enterprise for an entrepreneur that has extensive experience in the field of retail management. These businesses are enjoying a very substantial rate of growth which is expected to continue in perpetuity as people stop smoking.

Hedge Fund SWOT Analysis

There are a number of absolute strengths as a relates to managing a hedge fund. Foremost, these enterprises are generally able to produce profits in any given environment. This is the nature of a hedge fund, and many investors seek out these investment vehicles simply because they can produce substantial income and capital appreciation even during bear markets and economic recessions. One of the key strengths of managing of hedge fund as well as at the operating costs are typically very low. Only a handful of people are needed to manage even a large-scale hedge fund. The profitability of these businesses can also be substantial given that most hedge fund management companies take a fee equal to 1 to 2% of total assets managed coupled with a fee of 20% on all profits generated. This can be a highly lucrative business for someone that is very familiar with how to profit in any type of market. The startup costs for a new hedge fund range from $100,000 to $500,000 (for infrastructure).

For weaknesses, hedge funds have a number of regulations that they must adhere to on an ongoing basis. Most hedge fund managers are required to have securities licenses including the series 65 license. A qualified compliance attorney must be hired in order to ensure that the hedge fund is complying with all security and exchange commission regulations as well as among other state-based securities commissions.

For opportunities, the fastest way that most hedge funds grow it simply by acquiring additional capital from their already existing group of investors. Some hedge funds will maintain a number of different series in order to provide different types of returns for different types of investors. This is really the only way that these businesses grow. Additionally, many hedge fund managers will reinvest their portion of their profits back into the fund in order to produce higher returns in subsequent years.

For threats, hedge funds are continually undergoing changes as it relates to their regulations and laws that guide their activities. Again, a qualified compliance officer or a third-party attorney that is familiar with securities compliance must be hired in order to ensure that the hedge fund is operating with the letter of the law at all times. Additionally, depending on the type of investments made – economic recessions can drastically impact the profitability of these businesses. As such, a qualified hedge fund manager need to have a number of strategies in place in order to ensure that profitability occurs at all times. For a hedge fund manager that has an extensive track record of producing profits on a yearly basis the ongoing competitive issues are relatively low.