invest

Ways to Raise Capital Funds for a Start-up

Starting a business involves a number challenges for a young entrepreneur. One of the toughest challenges involves capital funding as you come across very few investors in the market. It’s not impossible to find an investor, but you may resort to a few alternative options in order to enjoy the financial success. Identifying the right source for capital funding often leads an entrepreneur through some misconceptions.

One of the most common misconceptions pertaining to capital accumulation is about acquiring debt from unreliable sources. Business owners are scared of jeopardizing their financial situation when the loan interests reflect a sharp rate hike. If you haven’t been careful initially, you must brace yourself for the worst. It really helps when you come across a few quality resources online.

Few good tips on capital funding to help a business flourish in no time:

1. Check out your wallet at the beginning. All of your retirement, home equity, and savings accounts need to be

tapped. Till the time you invest your own hard-earned money, you can’t expect others to put your money at stake. Investors possessing profound knowledge tend to support founders that have more confidence in their activities. Most investors prefer to go with entrepreneurs that have more than just “sweat” to spare in times of need.

2. Resort to bootstrapping. In your attempt to stretch the financial resources of your business, you must consider each dime as if it’s a dollar. You’ll learn to manage your finances better when you continue to make necessary payments in time. Meet all of your business expenses out of your revenue every month as you proceed. You might fall short of cash during the initial phases. However, your path to raise capital gets more flexible when you start bootstrapping for securing a good validation in the market.

3. Consider funds that are not dilutive. Solicitations and grants are not always the best option for a start-up business. But you ought to check them out before you turn down such offers. You’ll only need to bear a much lower rate of interest when you opt for loans or grants just to ensure a fast growth of your business. Such sources of capital accumulation often provide your startup with huge sums of money. That’s why you ought to plan your strategies and operate freely.


4. Acquire capital based on milestones. Falling short of capital is equally bad to that of accumulating excess capital. You won’t need to give up on equity be it about reaching milestones or meeting your capital requirements.

5. Develop your line of credit. Bankers tend to vet you when their lending competitors have already done so. They are more likely to return your calls when you adopt the right funding strategy. Sourcing funds through the initial stages don’t draw any silver bullet. Keep yourself from committing a suicide by laying more emphasis on bootstrapping and by following the right funding strategies.

The need to accumulate a huge amount of capital up-front for achieving quick success constitutes a popular entrepreneurial misconception. A move like this could ruin the prospect of dropping a successful anchor right at the beginning. Follow the tips mentioned above if you don’t want to give up equity early on. There’s no need for you to raise more of investment capital unnecessarily.


Investing in Commodities With a Profitable Resale Value

Nowadays, people tend to think that the only way to make significant money is to set up their own business. They think that they have to come up with an innovative product concept, design and develop it, manufacture it, and sell it to consumers around the world. Now, this, of course, is a brilliant plan. After all, small business based on unique consumer products is a brilliant way to make a stable income. But have you ever considered investing as another money making scheme to get involved in? Investing involves purchasing something at a low price with the intent of selling it on at a higher price. Sounds relatively simple right? The good news is that it can be. You just need an eye for detail and to know what items you can make a decent profit from. To succeed, you’re going to have to invest in commodities with a particularly high resale value. This gives you a better chance of avoiding loss and making profit. Here are a few different products that you should consider specialising in!

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Smartphones

Nowadays, the majority of people have smartphones. But the latest phones on the market do tend to have a particularly high price tag. It’s not all too surprising that the majority of us avoid upgrading our contracts and instead look online to buy second hand models. You can profit significantly through selling smartphones. Keep an eye out for individuals selling their old cells for a low price when they upgrade their own contracts. Then sell these on for a higher price on online auction sites. Keep a particular eye out for Apple smartphones. These tend to hold the best resale value, as Apple is a highly desirable brand.

Gold

Gold has always held value. When you actually think about it, this may seem a little odd. After all, besides being aesthetically attractive, you can’t do a whole lot with it. But societies around the world have long associated this substance with monetary value for years now, and this is something that it has managed to maintain until this very day. So, consider buying gold from Sprott Money. Unlike paper money, gold has retained significant value for a huge portion of human history. It provides an excellent hedge against inflation and can almost always be sold off for a good profit.

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Designer Clothing

There are certain objects that will always be desirable, as the majority don’t have access to them. Items of designer clothing are out of the majority of people’s budget, making people want them more. So, you can make a serious amount of money by keeping an eye out for designer items in charity stores or for sale second-hand from individuals who have enough money to keep up with the trends. List on online auction sites, as this is where the majority of people tend to look for cheaper second hand goods.



These are just a few different commodities that retain their value well, allowing you to sell them on for much more than you invested into them!


4 Effective Ways to Invest (That Aren’t the Stock Market)

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Although it’s a pretty sensible move to invest some of your money on the stock market, it’s also a really good idea not to put all of your eggs in one basket. By spreading your money around, you minimize your risks significantly, which means that you should always be on the lookout for other forms of investment.

With that in mind, check out these effective ways to invest that don’t include the stock market:

Peer-to-Peer Lending

Peer-to-Peer lending has gained some real traction in the past five years or so, and it is undoubtedly one of the best ways to invest your money because it benefits not only you but the entrepreneurs you invest in too.

Basically, peer-to-peer lending works by taking out the middlemen that are the banks and allowing individuals to pool together to invest in entrepreneurial people around the world. When you don’t have a bank taking their share, your returns are likely to be higher. Just be careful to choose your investments wisely and to, ideally, spread your cash amongst at least 10 individual loans ( the more, the better in this case), for a diverse portfolio that is more risk-averse.

You

Investing in yourself is rarely a bad idea. In fact, doing just that is likely to be one of the least risky investments you ever make. Why? Because when you invest in yourself, you increase your opportunities, which almost always leads to greater wealth. So, whether you want to get an online bsw, so you can embark on your dream career, you want to set up your own small business to get out of the rat race and give yourself a better income, or you want to enrol on an accountancy course to switch to a more lucrative career, invest in yourself. This is one form of investment you’re unlikely ever to regret.

Precious Metals

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Investing all of your money in precious metals is probably not a good idea, but buying a little gold or silver is quite sensible. Obviously, the prices of precious metals do rise and fall over time, but if you’re looking for a relatively safe place to diversify your portfolio, a small holding of gold, for example, will probably serve you well, not least because it’s a physical asset that you can take complete control of – something which can be very useful in turbulent times.

Debt Elimination

Instead of putting that money into stocks that have no guaranteed return, why not pay down your debts – something which will effectively give you a 100 percent return on your investment? Although you should always save a little for a rainy day, if you have lots of debts, it makes more sense to get rid of them before you start investing because returns are unlikely to outdo the huge amounts of interest you are likely to be paying.

If you plow your money into any one of these four things, it will be an investment well made, and you will have a brighter financial future as a result, that’s for sure.


5 ways to raise capital funds for a start-up

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Starting a business involves a number challenges for a young entrepreneur. One of the toughest challenges involves capital funding as you come across very few investors in the market. It’s not impossible to find an investor, but you may resort to a few alternative options in order to enjoy the financial success. Identifying the right source for capital funding often leads an entrepreneur through some misconceptions.

One of the most common misconceptions pertaining to capital accumulation is about acquiring debt from unreliable sources. Business owners are scared of jeopardizing their financial situation when the loan interests reflect a sharp rate hike. If you haven’t been careful initially, you must brace yourself for the worst. It really helps when you come across a few quality resources that can prepare you in advance.

Few good tips on capital funding to help a business flourish in no time:

1. Check out your wallet at the beginning.

All of your retirement, home equity, and savings accounts need to be tapped. Till the time you invest your own hard-earned money, you can’t expect others to put your money at stake. Investors possessing profound knowledge tend to support founders that have more confidence in their activities. Most investors prefer to go with entrepreneurs that have more than just “sweat” to spare in times of need.

2. Resort to bootstrapping.

In your attempt to stretch the financial resources of your business, you must consider each dime as if it’s a dollar. You’ll learn to manage your finances better when you continue to make necessary payments in time. Meet all of your business expenses out of your revenue every month as you proceed. You might fall short of cash during the initial phases. However, your path to raise capital gets more flexible when you start bootstrapping for securing a good validation in the market.

3. Consider funds that are not dilutive.

Solicitations and grants are not always the best option for a start-up business. But you ought to check them out before you turn down such offers. You’ll only need to bear a much lower rate of interest when you opt for loans or grants just to ensure a fast growth of your business. Such sources of capital accumulation often provide your startup with huge sums of money. That’s why you ought to plan your strategies and operate freely.



4. Acquire capital based on milestones.

Falling short of capital is equally bad to that of accumulating excess capital. You won’t need to give up on equity be it about reaching milestones or meeting your capital requirements.

5. Develop your line of credit.

Bankers tend to vet you when their lending competitors have already done so. They are more likely to return your calls when you adopt the right funding strategy. Sourcing funds through the initial stages don’t draw any silver bullet. Keep yourself from committing a suicide by laying more emphasis on bootstrapping and by following the right funding strategies.

The need to accumulate a huge amount of capital up-front for achieving quick success constitutes a popular entrepreneurial misconception. A move like this could ruin the prospect of dropping a successful anchor right at the beginning. Follow the tips mentioned above if you don’t want to give up equity early on. There’s no need for you to raise more of investment capital unnecessarily.


Gold no longer a good investment?

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From time immemorial gold has been considered as a gifted asset beneficial in times of crisis. Conventionally acknowledged as a passive investment, gold, however, is struggling to keep up with the demands of the present economic meltdown.

Return on outlays is the imperative factor that is measured before expending any amount and earnings on gold are skimpy nowadays. It is nothing but a commodity and even years after you procure it will remain unchanged. Any growth in the worth is conditioned on the desire of another buyer ready to expend more than the original price and there is no guarantee whatsoever.

In the course of this post we will unravel some facts and figures that can help us figure out whether or not we should put in our hard earned money in gold. Read on!

Can you yield profits with gold?

Unlike other financial investment schemes that are accessible gold is unprofitable. Other assets are better off if you are looking for economic growth. Gold manufacturing has had industrialized societies backing it for years but it is a not a very valuable financial security anymore. Adding to this, people only buy gold living in fear of other assets losing value.

The good things that gold buying renders

In scenarios where one does not have access to any other form of investment gold can be resorted to. As a substitute to other schemes it can be helpful in times of conversions like demonetization from recent past. It is always better to build assets than keeping liquid cash in banks.

In circumstances when financial crisis befalls investing in gold can come to rescue. This form of currency is better than cash as it does not fall under taxable income unlike the others.

Paper gold and gold bonds

The new age hassle free way of buying gold is paper gold and tax free gold bonds that are easy and dependable. Many financial hubs run gold backed mutual funds and closely monitor their value ebb and flow thus assuring security.

Newspapers may have belittled the importance of gold as an investment but grey haired believers are still not hard to find. People still buy gold coins and jewelry not just to satisfy the temptation but because they still rely on its value. It is a survival strategy for many to overcome fiscal vagaries that time and again have come forth to revolutionize the social order. Getting conversant with different schemes that are obtainable is the way to go. Internet can sort things out for you if you are planning to invest. Not just our eyes it is time to open our minds and think rationally.

Get ready for tomorrow!

 


Are You Ready To Invest?

Finding out when to invest can be daunting. You may think you are ready but there are a lot of boxes to tick first. Investment can give you riches beyond imagination, but it can also rip away the limited wealth you currently have. Care is always needed. Your finances are important, no matter what period of your life you are in. As such you need to protect them. These people you see making millions from investment have put in years of experience. That or there is either something dodgy going on or they have huge finances to put behind their investment. Remember, if you are approaching with a lower sum you won’t make as much, but you also must never invest more than you are willing to lose. As such you can hit a snag. But it is a tenant you need to live by of risk losing everything.

In the first instance evaluate your finances. Are you in a place to invest? How much do you have? If you have any debt then your best bet is to pay that off first. That means your mortgage, car, etc. You must ensure you get rid of these debts at the first instance. There’s no point putting money in something risky when instead you could put it against your debt. If you really want to there’s is nothing stopping you, but if you lose the money you could end up in a bad spot. Be wise, and pay off the more important things before splashing out on investments.

You need money, yes, but you also need time. Time to research the investments you may want to make. If you invest without due research then you are essentially gambling. You may as well go down to your local casino and put it all on black. You need check out the better places to purchase from, gold for instance, if you pick the wrong place you could get a bad product. Get it from a respectable source like usgoldbureau.com. Research is everything in investment. Sure, you can give some cash to a hedge fund manager, but the better ones except nothing less than a million. If you are going to do it yourself you will need the time to research it. There are dozens of books out there for you, and many websites to get information form. The trick is in finding the good sources. Don’t just read anything, wrong information is worse than no information at all.

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You need to find a niche too. Don’t blindly invest in a few things, do your research once at a time. If you want to tackle stocks, then look at stocks in detail. You need a varied portfolio, granted, but you also need to ensure you have enough information to act on. That’s why investment takes so long to get to grips with. It takes effort and perseverance, and sometimes even a little bit of luck. You’ll know when you are ready. Don’t act prematurely, that is nothing but the sign of an impetuous amatuer.


Why Real Estate Is Such A Smart Investment

There’s a reason people invest in real estate: it’s a smart investment. Say what you like about the stock market or gold, property has people coming back, time and time again.

The question is, why?

The main reason has to do with the fact that the price of real estate is unlikely to go to zero. Unlike stocks, which oscillate on a daily basis, property seems to keep going up, year after year. Even in the financial crisis, property prices in some areas didn’t fall – and even if they did, they soon bounced back in 2010 and 2011.

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Real estate investing is also being driven by the actions of the Federal Reserve. At the moment, it’s holding interest rates really low, forcing investors to find alternative ways to get a return on their savings and build their wealth. Not only are they putting their money into stocks, but they’re also taking it out of the bank and putting it into real estate too. Many investors hope that this will help them avoid the inflation which many see as inevitable. Houses can’t be inflated away.

The sorry state of the macroeconomy isn’t the only reason why you should be investing in real estate. Here are a bunch of other reasons why property might be the investment for you.

Asset Value Appreciation

Property values have been increasing for well over half a century according to the Case-Shiller index – something which compares the value of housing to the median income. The higher the Case-Shiller index, the faster house prices are accelerating compared to wages. This historical pattern of rising house prices relative to wages is one of the reasons why people have been investing so feverishly in property. They want to capture some of the returns and build their wealth using an asset which performs better than most other classes of assets, as well as economic fundamentals.

Joe Nahas, CEO of Coronation Property, recently spoke of his success in the property business. According to reports, he managed to sell more than $110 million worth of residential units within hours after announcing that apartments in a building he managed were for sale, a significant premium over the price of the building itself.

It’s A Physical Asset

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Another benefit of investing in property is the fact that it is an income-producing asset which will be valued in the future. Investors, for instance, don’t mind paying premium prices for property since they know that they will be able to generate an income from it in the future. What’s more, even if prices fall somewhat, they’re still able to claw back the majority of the value of the property simply by selling.

Low-Cost Debt Can Multiply Cash Flow

Houses are expensive. But in a world where the price of accommodation is high, and the price of money is low, there are many opportunities for investors. Say, for instance, you take out a mortgage on a new property you rent out. Your mortgage interest might only be 2 percent of the total value of the property every year, but you may be able to make 6 percent of its value every year, just renting out, pocketing the 4 percent difference.


Speculate to Accumulate : Investments For Service Business Success

If you own a service business, then you need to be aware of which areas you need to invest in to ensure that you are as successful as possible. Of course, you will need to balance the cost of these with the value that they add to your company. But don’t be afraid of a little speculation for some accumulation, if the intent is to improve your chances of commercial success.

The Service

Most commercial companies other offer either a product or a service. In fact, that is what they are designed to do. To offer a product or service that folks need at a cost that covers the company’s overheads and allows for a profit margin. That is why it make perfect sense that the first thing that you should invest in the service itself.

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If the service you’re offering isn’t up to scratch, you are just going to make your own and everyone else’s life, a lot more difficult. This is because, you will have unhappy customers, disenfranchised staff, and a poor reputation.
That is why it’s so vital to put some time, and financial resource into developing your key services, so you can deliver exactly what you claim to. Otherwise, You are just building your empire on foundations of sand.

Your Staff

Of course, once you have a polished your services to offer the general public, the next thing on your list needs to be an investment in your staff. It is common that staff are often an underrated aspect of success in the business world. Therefore don’t always get the attention and investment that they deserve.

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Investing in small things that can help to boost morale, like training and socials gatherings. As can providing a development budget for things that don’t directly link to work. Such as playing a musical instrument or learning a martial art. Activities like this help, because people feel happier about their work-life balance, which in turn helps them to work harder and more effectively at their jobs.

Keep in mind that the ‘rise of the robots’ isn’t here quite yet! So service business still, pretty much relying on humans to make things happen. Therefore it is still very prudent to invest in this resource.

Customer Service Skills And Conflict Resolutions

Another area to invest in, that can boost the success of your business is training. Especially in customer service skills and conflict resolution. These skills are vital to having a proactive service company rather than reactive one. But why does that matter?

It is because, the proactive companies that give the customer what they want before they have even realized it that they want it. It is these companies that stand head and shoulders above the rest of the competition, and have the clearest path to financial success.

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Remember too, if you can resolve complaints and conflicts where everyone comes out satisfied, you will also encourage great feedback and trust scores online. Which is becoming more and more important for commercial success in the current business market.

IT Training

Now if you are running your company without any IT at all, then you are a). Not going to be reading this, and b). In a very small minority. Most commercial ventures, whether they are one man bands or large multinational corporations, rely on IT to a large extent.

That is because processes can be streamlined, overheads slashed, and communication made instant. But how much time and money do you think your company loses, because your employees don’t know the best ways of performing tasks on their computers.

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At the most basic level, how many hours do your company lose because not everyone in the office can touch type? All those little mistakes add up. The same goes for even the most basic of tasks like running queries in Excel or your databases. Not to mention the more complicated features of any custom design programs that you may be running.

Then there is the issue of online security and using only secure lines of confidential work matters. Hillary Clinton being a prime example of this going wrong, recently.

For all these reasons it is vital to invest in IT training for your employees. Just remember to make it specific to the sort of jobs they will be working on, for you.

Surety Bonds

Something else that you need to consider investing is when you are aiming to be a successful service provider is surety bonds. Remember that your reputation is business is everything, so you want to be able to have ‘licensed and bonded’ next to your name. As this will help customers be able to put their trust in you.

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This trust comes from the guarantees like the ones available from Meadow Brook surety bonds. Which ensure your customers will be compensated if you don’t complete the job.

Therefore they know that they can recover their losses if you mess up. So they are going to feel a lot more confident in going into partnership with you. It’s not exactly insurance but functions like insurance on your contractual promise.

Office Space

Something else that you should consider investing in is a space that functions as you company headquarters like an office or building. This can help your reputation as you will have somewhere to hold meetings and that your clients can visit.

However, if you are concerned with the cost of this, you can choose to use flexible office space, booked just for important events and meetings. Then have your staff work remotely. As this will save on overheads, while still giving you a professional appearance.

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Branding

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Lastly, another area in which it is wise to invest when you are running a business is your company branding. This is usually comprised of a logo, font and color scheme that is consistently used across all company correspondence.

Branding your business in this way can help you customers identify you, as well as help you stand out from competitors. It also feeds into the appearance of being trustworthy and professional which is such a vital factor for long-term service business success.

 


Expert Advice To Help You Invest In The Right Property

Real estate is all about finding the right type of property to invest in. To help you out, I’ve listed four types and written some info on each of them.

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(Photo: https://goo.gl/K1KvSG)

Houses

Houses are the prime property investment everyone wants to make. If you go through life without owning a house, you’ve had a hard time. They make excellent investments, for more than one reason. Firstly, the price of a house rises all the time. You can make to additions, and it will still increase in price because that’s how real estate seems to work. But, if you want to improve a house, you can! They’re great for buying, improving, and selling within eighteen months. You can earn lots of money property flipping like this. Plus, houses are probably the best investment for people playing the long-term game. Buy a house, live in it for years, and sell it for a profit ten years down the line. It’s so simple and well worth your money.

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(Pic via: https://goo.gl/WAqfPB)

Apartments

Now, apartments have numerous benefits that may make them the right investment for you. Firstly, buying an apartment can cost you less than buying a house. Plus, there are way more apartments for sale than houses. So, there’s more on the market for you to choose from. Not only that, new apartments are highly desirable amongst renters. People that don’t want to own property will often look for apartments to rent. For me, this property type is ideal for those looking to earn rent money. Buy-to-let experts often shout about apartments being the best investment you can make.

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(Image link: https://goo.gl/JiVzNp)

Static Caravans

An interesting property to invest in is a static caravan. Often, people refer to these as holiday homes, and some call them chalets. They offer a very clever investment opportunity for the savvy property buyer. Personally, I think they’re ideal if you want to invest in something cheap. They’re the cheapest option out of the ones I’ve already mentioned. The main difference with these is that you’re targeting a very specific market. Holiday homes like this are very popular in the elderly community. This is because their location tends to private, which is what they desire. For me, these properties are great for building a big portfolio. You can easily purchase a lot of them, and own your own holiday village. There’s not as much money involved in static caravans compared to houses and apartments. But, on the flip side, it means you don’t have to contribute as much money either.

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(Picture source: https://goo.gl/NUWNtq)

Offices

While all of these ideas have been residential, some prefer to go more commercial. Investing in offices might be right for you. They do require a fair bit of maintenance, but the rewards are high. Simply because offices are in very high-demand. Especially if you own one in a busy area. Plus, you can always use the building yourself if you want. Have your business on one floor, and rent out the others. You get office space and make extra money while you’re at it.

Hopefully, viewing these options has helped you decide what type of investment you want to make. Think about which one suits you the best, and then go for it!


Unexpected Costs to Consider for Businesses in the Energy Industry

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The energy industry is incredibly competitive. There is little room for start-ups and fledgling enterprises, and this means that those venturing into the arena with the market giants must be prepared for every eventuality.

Supplying energy to consumers generally involves three key facets: producing energy, transporting gas and electricity, and marketing it to consumers. This is an immensely expensive process for even the most small-scale venture, and hidden costs lay around every corner.

If you’re planning on taking your place amongst the leviathans, then here are a few costs that you need to take into account…

Equipment

Energy producing equipment tends to be extraordinarily costly, and many fledgling entrepreneurs underestimate just how much outlay will be required before any profit can be made. Generators, grids, and so on must all be put in place before you can start looking for customers, meaning that you’ll require a fully functional enterprise before you can begin touting for business. Any issues with these must be ironed out prior to trading commencing, as consumers tend not to be very forgiving of mistakes once winter hits and their homes need warming.

Power Stations

Power stations will constitute a fundamental part of your fledgling operation, and must be carefully designed and constructed according to your individual needs and current government policy. It will take some very skilled workers to build them for you, and their expertise will come at a premium. Be careful to calculate the total of all the costs associated with construction, and then add a further 20 per cent in case of complications.

Employees

Thirdly, consider the costs of hiring staff. No energy company can function in isolation, so you’ll need trained employees to deliver the service you provide, as well as to maintain and manage your power stations and equipment. Many of these will be able to charge a premium for their experience, and due to the constant developments in the industry, and the dangerous nature of working with energy supplies, they will require frequent training and retraining in order to deliver a premier service and create a safe working environment.

Insurance

Finally, don’t forget to factor in the cost of insurance. Energy production is a niche industry, and businesses tend to have a high value attached to them. Ordinary commercial insurance providers will rarely offer the level of cover that you require, so you must consider specialist outfits such as Catlin instead. Responsible for underwriting many of the world’s most expensive and successful ventures, these experts will be able to provide the level of protection that you need, meaning that the business you’ve given your all to is fully protected should disaster strike.

Safeguard the future of your energy enterprise and be prepared for whatever life may throw at you.

 


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