Investing in Private Placements – What Is Involved?

If you are interested in investing in private placements, you should know that these are a certain kind of investment that is only made available to a select group of private investors. They are invited to invest in a business instead of the business making the offer available on the whole market. The investment could be in the form of a warrant, preferred or common stock, or promissory note. The biggest difference between investing in these placements and regular investments is that private placement investments are not required to be registered with the SEC, or Securities and Exchange Commission. This prevents these kinds of investments from needing to hold fast to firm rules that regular investments must.

The reason why some businesses prefer to offer opportunities for investors wanting to invest in this kind of placements is because they do not need to disclose very much information to the public about their company if they do not want to. Of course, there are other requirements that must be met for an investment opportunity to be qualified as a placement of this type. For example, potential investors must be told about all applicable information so they can make an informed decision about investing in these placements.

There is a high degree of risk associated with investing in these placements for several reasons. For example, since securities are not publicly traded, they are less liquid. Plus, sometimes investors are required to hold onto stock for a certain amount of time before trading. Another reason is that companies looking for these investors are typically in early stages of development because they have not had their initial public offering. This means they are fresh on the market and have not proven themselves yet. Therefore, if you are serious about investing in these placements, you must be aware of low liquidity, have a high risk tolerance, and be prepared for the long-term commitment that will be required of you.

You can improve your chances of success with this kind of investment by conducting independent research. You should see how a company promotes itself in the PPM, or Private Placement Memorandum. There will also usually be an investment bank acting as an intermediary between the company and future investors. You can support a new business looking for opportunities to make money without going public by investing in private placements. You stand to gain a large return on your investment if you are willing to devote enough time and effort to the private placement.

Top 7 Reasons Why Business Networking Organizations Fail

Business networking is a great way to meet your business to business target market. These groups can literally become an unpaid sales force for the small to mid size business owners depending upon their industry, After being involved in several business networking organizations, I have observed these 7 common reasons why so many fail.

Number One: Bad leadership is probably the primary reason for the failure of these groups. Unless the leadership is ethical and results driven, the group will eventually whither away and die. Remember, the old adage people do not leave companies they leave managers. This is also true these business networking associations.

Number Two: Emphasis on the social versus the business is another trait. Yes, human beings are social creatures and maybe this is why some associations turn to emphasizing the social events because they feel comfortable with their fellow members. Yet, the purpose of these business networking groups is to grow business from the outside. Personally for me, I prefer to find my own social activities and not invest time where it cannot return a significant result.

Number Three: Formation of cliques also contributes to failed business networking associations. This trait is very much connected to bad leadership. In many cases, the leadership is also involved in the cliques and this in turn creates disharmony within the group.

Number Four: Incestuous referrals are the fourth reason why business networking groups fail. Again, this is a result of bad leadership and clique formation. Referrals internally do increase sales for some members, but at the expense of others. Incestuous referrals becomes a one way street and leaves those non-incestuous members short sales revenue.

Number Five: Not understanding the business of the other members is the fifth trait. Again, those in the cliques and those benefiting from the incestuous referrals have really no reason to understand the businesses of the other members.

Number Six: Inconsistent accountability is an outgrowth of bad leadership, emphasis on the social and clique formation. Who wants to vote out a member who another member considers a friend? Why challenge the inability to make the minimum number of referrals.

Number Seven: All of these previous six reasons lead to the seventh that being forgetting the purpose of the business networking. These business networking associations are formed to increase sales for all members and not just some members.

If you are a member of a formal or informal business networking association and begin to encounter any of these experiences, then you may wish to reassess your membership and maybe even your own sales skills. Visit several other networking groups, talk to other business owners. Invest your time wisely to secure the greatest results and yes you can increase your sales.

Benefits of Investing in Commercial Properties

Investing in Commercial Properties – Benefits of Investing in this.

There are many ways to invest your money today. Some may try the stock market, in a new business venture or by becoming a lender. However, to many one of the safest ways to invest your money is in real estate. Many have experienced great returns in residential properties, while other favor investing in commercial properties instead. Both are good choices, but for many commercial investments seem to be less stressful while resulting in larger returns.

Investing in commercial properties can be an excellent way to invest your money without a lot of the stress that accompanies a residential investment. These properties are used by businesses and this eliminates some of the tenant issues that one faces in a residential setting. Commercial tenants are more inclined to keep the property maintained better and looking nice as the way their place of business looks can influence the amount of customers and business they receive. In addition, most leases have clauses written in about the upkeep of the property and the consequences that will result if it is not maintained.

Commercial properties are a great way to increase your cash flow. Those who are investing in these properties will receive higher rents and will have tenants who have longer leases than those of a residential investor. Typical commercial leases last from three to 20 years, whereas residential leases generally last only one year. In many instances, a commercial lease will also be secured by bank guarantees, which makes for a secured investment. Most commercial leases also include regular rent increases that generally coincide with the consumer price index. Another plus for this type of property is in the renovations and remodeling that needs to be done to the property. These are all costs that will be absorbed by the tenant rather than the owner, which can result in significant savings in regards to cash flow.

In addition to the advantages mentioned for who are investing in these properties, another has to do with the increase in the value of the property over the years. This appreciation can be a wonderful benefit to the person who owns the property. These types of properties also enjoy significant tax breaks that most residential properties are not privy to. These benefits can make investing in commercial property a wonderful decision for someone who is new to investing, as well as those who have had experience with it in the past. It is one of the most secure ways of investing your money without involving too much risk.