DESTRUCTION OF ORANGUTAN SANCTUARY HIGHLIGHTS RISKS OF REDD
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Tuesday, September 29, 2009
Sunday, September 27, 2009
Want to Invest in Early Stage Ventures?
Top Ten Points to Consider by James Claridge
For investors considering a foray into the speculative but potentially lucrative and personally rewarding start-up/early stage sector, here are some key points to consider, steps to take and key questions to ask.
James Claridge serves as a sponsoring member with Alchemy Equities, assisting SMEs to raise equity capital. James has over 20 years experience in risk management, business valuation and actuarial activity.
These points come from personal experience as an investor in a number of early ventures and should not be construed as financial advice.
1) Does the product really offer customers what is claimed by the company? If the Share Offer document does not provide sufficient evidence of product effectiveness, then ask the company for more evidence.
2) Assess the demand for the product. Is it reasonable to assume that the product will generate significant, long-term revenue growth? Or will it be a fad, with demand drying-up before adequate returns on investment have been made?
3) Check out the Executive and Board. Do they have the collective experience and expertise to deliver the product to market and to handle the operational constraints that early stage companies face? A board that has a director with relevant expertise in product commercialisation can greatly improve the company’s likelihood of success.
4) Review the business model, including branding, marketing, supply chain, distribution, customers and pricing. Make sure that the company is clear about how it intends to distribute its product and who its customers are.
5) Identify the key risks facing the company. Does the company exhibit basic corporate governance, compliance and risk management awareness? Where possible, have the key risks been addressed?
6) Review the competitive advantage of the company, the competitor analysis and barriers to entry. Is Intellectual Property protected? Is the company focused on building-up its brand so that it can fully exploit its first-mover advantage? Will the company be able to maintain its gross operating margin into the future (given that all successful products are ultimately copied)?
7) Is the company continuing with product development? This is important as it allows the company to leverage of its initial product and to create an ongoing, diversified revenue stream.
8) Review the balance sheet, P&L accounts and forecasts (if any). Start-ups should not be carrying debt, should not be excessively remunerating directors or founders with cash and should not be spending money extravagantly (e.g. business class travel, plush offices).
9) Talk to the founders and directors (as many as you can). Ask them tough questions, based on the outcomes of your assessment of the company’s Share Offer. Assess their dedication and ability to successfully implement the business plan. Lack of cooperation may indicate an unhealthy attitude to shareholders generally.
10) Review the financial forecasts and the valuation of the company implied by the number and price of shares on offer. Calculate the return on investment over the period to exit – is it reasonable given the risk? If possible, produce your own, simple, projection model and test profitability using more conservative assumptions. If you don’t have the expertise to do this yourself, get some help.
About Alchemy Equities
Alchemy Equities Is mounting a Becoming Investor Ready program with the NSW Department of Industry and Investment aimed at NSW-based SMEs – the application deadline for the program is 14 September.
Interested companies and business owners should apply at http://www.alchemyequities.com.au
For investors considering a foray into the speculative but potentially lucrative and personally rewarding start-up/early stage sector, here are some key points to consider, steps to take and key questions to ask.
James Claridge serves as a sponsoring member with Alchemy Equities, assisting SMEs to raise equity capital. James has over 20 years experience in risk management, business valuation and actuarial activity.
These points come from personal experience as an investor in a number of early ventures and should not be construed as financial advice.
1) Does the product really offer customers what is claimed by the company? If the Share Offer document does not provide sufficient evidence of product effectiveness, then ask the company for more evidence.
2) Assess the demand for the product. Is it reasonable to assume that the product will generate significant, long-term revenue growth? Or will it be a fad, with demand drying-up before adequate returns on investment have been made?
3) Check out the Executive and Board. Do they have the collective experience and expertise to deliver the product to market and to handle the operational constraints that early stage companies face? A board that has a director with relevant expertise in product commercialisation can greatly improve the company’s likelihood of success.
4) Review the business model, including branding, marketing, supply chain, distribution, customers and pricing. Make sure that the company is clear about how it intends to distribute its product and who its customers are.
5) Identify the key risks facing the company. Does the company exhibit basic corporate governance, compliance and risk management awareness? Where possible, have the key risks been addressed?
6) Review the competitive advantage of the company, the competitor analysis and barriers to entry. Is Intellectual Property protected? Is the company focused on building-up its brand so that it can fully exploit its first-mover advantage? Will the company be able to maintain its gross operating margin into the future (given that all successful products are ultimately copied)?
7) Is the company continuing with product development? This is important as it allows the company to leverage of its initial product and to create an ongoing, diversified revenue stream.
8) Review the balance sheet, P&L accounts and forecasts (if any). Start-ups should not be carrying debt, should not be excessively remunerating directors or founders with cash and should not be spending money extravagantly (e.g. business class travel, plush offices).
9) Talk to the founders and directors (as many as you can). Ask them tough questions, based on the outcomes of your assessment of the company’s Share Offer. Assess their dedication and ability to successfully implement the business plan. Lack of cooperation may indicate an unhealthy attitude to shareholders generally.
10) Review the financial forecasts and the valuation of the company implied by the number and price of shares on offer. Calculate the return on investment over the period to exit – is it reasonable given the risk? If possible, produce your own, simple, projection model and test profitability using more conservative assumptions. If you don’t have the expertise to do this yourself, get some help.
About Alchemy Equities
Alchemy Equities Is mounting a Becoming Investor Ready program with the NSW Department of Industry and Investment aimed at NSW-based SMEs – the application deadline for the program is 14 September.
Interested companies and business owners should apply at http://www.alchemyequities.com.au
Monday, September 21, 2009
Welcome a Beautiful Newborn with a Gorgeous Gift
One of the most breathtaking moments is when we welcome a new life into this world. And what better way to celebrate such a special event than with a gorgeously unique gift from one-stop, online boutique gift shop, Simply Gifts Ltd.
Simplygifts.com.au provides you with spectacular, stylish gift options that can be customised to your needs and wrapped to your specifications. Gifts can be delivered anywhere in Australia and ordering only takes minutes!
A special present for baby showers, newborns, toddlers and for new mums, Simply Gifts offers a diverse and unique range of gifts to choose from.
Wrap up your warmest wishes with a Pamper New Mum and Baby Gift set, containing delicious Organic Tonic lotions, baby milk and shampoo to pamper both newborn and mum. After a bath wrap up your little bundle with a warm cotton knitted patch blanket and let Mum relax with a heat pillow and a comprehensive guide book about babies, “Baby Love”. A truly beautiful present, wrapped in a gorgeous gift box.
Memories are priceless and with the adorable All About Baby journal, preserving the special baby’s first moments and mementoes will be effortless. This thoughtful gift comes with cute stickers to record development and plenty of space to add photos.
Want a stylish yet practical gift? Garden of Dreams looks just like a fresh bouquet but it’s more than a bunch of pretty flowers; each flower is an essential baby item such as a jumpsuit, bib and singlet that new parents can’t get enough of!
Skip Hop Duo Delux Bag is a versatile bag that will come in handy when baby junior starts to play in the park. Made out of durable canvas with plenty of waterproof pockets and a strap that can convert a shoulder bag into an attachable bag to any stroller, this bag is a must for parents who will run around with their little one!
Would you like to add a bit of this and a bit of that from a few different hamper sets? No worries!
Simply call the Simply Gifts customer service centre on 1300 66 11 24, or 00612 9913 4000, if calling from outside Australia to fully customise a gift for your special little ones.
Visit the Baby Gifts section at www.simplygifts.com.au or contact Simply Gifts on 1300 66 11 24 for the whole range of exquisite gift options.
For more information, contact Brianna Power - Affinity Marketing.
0403 904 912 - 07 5520 7615 - brianna@affinitymarketing.com.au
Wednesday, September 9, 2009
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