indexfoundation.nu » The world of business and entrepreneurship http://www.indexfoundation.nu My weblog about economy Mon, 25 May 2009 12:03:43 +0000 http://wordpress.org/?v=2.9.2 en hourly 1 Are You a Financial Bull or a Financial Octopus? http://www.indexfoundation.nu/the-world-of-business-and-entrepreneurship/are-you-a-financial-bull-or-a-financial-octopus http://www.indexfoundation.nu/the-world-of-business-and-entrepreneurship/are-you-a-financial-bull-or-a-financial-octopus#comments Mon, 25 May 2009 12:03:43 +0000 KS http://www.indexfoundation.nu/?p=127 To understand investment, you have to find out what kind of financial animal you are. Whether you believe in behavioral analysis or not, let us tell you that even Stanford and MIT are engaged in these studies. In addition, they’ve come up with pretty interesting analyses of real-world investment behaviors.

For example, a financial bull would be the big risk-takers. Willing to win everything or lose everything, financial bulls take risks like no one else. When they do lose, they don’t quit but become more aggressive in the effort to regain what is lost. Financial octopi on the other hand, have their hands on just about every kind of investment but they lack direction.

]]> http://www.indexfoundation.nu/the-world-of-business-and-entrepreneurship/are-you-a-financial-bull-or-a-financial-octopus/feed 0 Check 21 Might Cost Us More Than It Actually Saves http://www.indexfoundation.nu/the-world-of-business-and-entrepreneurship/check-21-might-cost-us-more-than-it-actually-saves http://www.indexfoundation.nu/the-world-of-business-and-entrepreneurship/check-21-might-cost-us-more-than-it-actually-saves#comments Fri, 08 May 2009 11:20:23 +0000 KS http://www.indexfoundation.nu/?p=90 When the United States Congress decided that it was better to use the electronic superhighway to deal with physical bank checks, everyone was in jubilation. This is because we don’t have to wait for a few days before the checks can be withdrawn as cash.

Unfortunately, there are some problems with the new system. Since everything is done electronically, we should be getting lower fees, correct? Yes. However, they aren’t budging. It seems that they’re more interested in using the savings for more lucrative deals than give it back to American citizens. So much for trust in the banking system. Anyway, let’s hope that better provisions come about with this world crisis at hand.

]]> http://www.indexfoundation.nu/the-world-of-business-and-entrepreneurship/check-21-might-cost-us-more-than-it-actually-saves/feed 0 The Difference Between Actual Debt and Equity http://www.indexfoundation.nu/the-world-of-business-and-entrepreneurship/the-difference-between-actual-debt-and-equity http://www.indexfoundation.nu/the-world-of-business-and-entrepreneurship/the-difference-between-actual-debt-and-equity#comments Tue, 14 Apr 2009 03:53:17 +0000 KS http://www.indexfoundation.nu/?p=31 picture8Small business owners often face problems with the amount of operating capital they have; they either have to borrow or look for investors who would bring in the much-needed cash. When you borrow money, you end up with debt. Debt is pretty straightforward; you borrow the money, and you must repay it within a grace period plus interest.

Equity on the other hand is giving up a portion of the company to investors. If someone invested $100,000 in your business, the person becomes a stakeholder. Eventually, people would leave after they’ve earned enough. In such cases, you have to look for people who would re-invest the same amount of money into your company.

]]> http://www.indexfoundation.nu/the-world-of-business-and-entrepreneurship/the-difference-between-actual-debt-and-equity/feed 0 “Closing Shop” Can Be Rewarding For Everyone http://www.indexfoundation.nu/the-world-of-business-and-entrepreneurship/%e2%80%9cclosing-shop%e2%80%9d-can-be-rewarding-for-everyone http://www.indexfoundation.nu/the-world-of-business-and-entrepreneurship/%e2%80%9cclosing-shop%e2%80%9d-can-be-rewarding-for-everyone#comments Fri, 10 Apr 2009 03:41:14 +0000 KS http://www.indexfoundation.nu/?p=19 picture4If you’re an entrepreneur and you’ve finally decided that it’s time to move on to better and more profitable ventures, you should make sure that the closing of the shop would still benefit everyone. Don’t simply lay off everyone and say, “C’est la vie!”. That’s a bad business practice, and would probably have repercussions in the near future.

First, assess how much your business is worth. Then, offer your workers options. You can give some shares of the company, or you can give them a lump sum that more or less would be the same value if a portion of the stocks had made money.  After the sale, you’re free to reopen another venture, worry-free.

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