Obama’s Custom Social Network

The recent years have seen a lot of entrepreneurs moving to online platforms to grow their business. Specifically, by using social media websites to establish a profile and brand for their company online. The importance of using social networking sites has become apparent to business owners, but unfortunately a lot of bad advice is out there on how to grow a custom social network.I’ve spent five years studying and participating in social networking websites, and can tell you that most of the “new” advice out there on social media marketing is wrong! In fact, “experts” are having you chase around things that can have little growth affect on your business. So what’s the key to social media success? To use social networking websites to build and foster a community!One of the most important justifications I’ve ever seen behind this was with Barack Obama’s 2008 political campaign. The election was the first to massively use social networking sites to connect with people. No matter what your political views are, his case is a case worth studying when trying to figure out how to launch your social networking campaign.His campaign leaders recognized the importance of social networking (which later polls would show was one of the key reasons he won) early on in the election. They went out and actually hired one of Facebook’s co-founders, Chris Hughes, to run the online portion of their campaign. Now remember, we are dealing with a people who had millions of advertising dollars at hand, and almost unlimited resources and technology to reach out to people. Hughes, however, knew what Facebook (and all social networking sites) was designed for and launched a different campaign idea.His main focus was to build a strong social community around Obama. He set up the main website for Obama as its own custom social network, allowing people to register and design profiles based around the candidate, and to invite their friends to participate. Hughes knew the importance of viral marketing, and the importance of giving people the controlled power to promote their thoughts and ideas (centered on the candidate’s ideas). Hughes made sure that all of Obama’s Facebook, Twitter, pod casts, and other social media forums reflected the same goal, to build an online community for the offline election.Now, Hughes did use paid advertising on Facebook, but only after the initial community had been set up. The secret to Barack Obama’s online success was through building an online community around his ideas and campaigns. Hughes knew that social networking websites were designed for people to interact in online communities, and structured Obama’s presence accordingly. When you build a community around your business, you’re giving people the power to do all the work for you, like in Obama’s case.As Obama’s campaign ended, Chris Hughes came forward with the numbers he generated for the campaign. The users on his website had created more than 2 million profiles, partook in the planning of over 200,000 offline events, formed 35,000 separate groups, posted nearly 400,000 blogs, and raised $30 million on 70,000 personal fund raising pages.Instead of trying to sell to the community that is already online looking for your product or service, you need to become a part of that community, as the expert (or a expert) in your niche. Once you have established a community around your business, you will be able to grow (and sell) your business in ways that people only imagined before.-Jerry Nihen

Why Not Hire a Children’s Entertainer for Your Kid’s Party?

EntertainersThere are many children’s entertainers in Leeds and the surrounding areas, you just need to do a quick Google search for “Children’s Entertainers Leeds” and you’ll have more than enough to choose from. There are clowns, magicians, fairies and pirate themed event organisers that specialise in entertaining for kids parties.Just a couple of the best in the North West (and East):JingJangJooJong – The crazy couple who create a magical alien world to entertain with.Make a Wish Entertainment – Specialising in fairy-tales for childrenSo if you’re struggling to think of something to do, just hire an entertainer, most of them are members of Equity so they are quality performers. Make sure they have public liability insurance however so that any little injuries from the activities are fully covered and you have nothing to worry about. You may also wish to check for CRB clearance which many of them advertise having.EquipmentIs it a dance, a do, a ball, a shower? Whether a birthday party, surprise party, or a calm British tea party, there’s some equipment you should make sure you have!The things below aren’t always needed, but they usually are, and are always good to have in-case that 1 guest requests them:
Plastic cups (because if it goes outside, it’s best not to have glass)
Plastic cutlery (for the same reason as above, but also because you can throw them away and don’t have to wash them up!)
Paper towels (because someone will spill something… somewhere.)
Plasters (even plastic cutlery can cut!)
Bottles of water (for exhausted kids, and intoxicated adults!)
They are the basics, and obviously if you’re catering for a certain type of party you’ll need your niche products, kids parties normally always have balloons, don’t forget the helium, or even easier just buy pre-filled balloons, that way you don’t have to blow them up, it can take a lot out of you. For themed parties the entertainers sometimes provide costumers for the kids or something to help them feel more involved, however it will be worth checking with them before-hand and if not maybe rent outfits or just one token piece (pirate hat/eye-patch) to give to the kids it really enhances the atmosphere. You can usually haggle with outfit stores as they don’t really have set prices, so go in hard and say that you’ve got a party for 20 kids and need 20 outfits can you have them for £10 each! You may just get lucky.Things to look out for!Equity, Public Liability, CRB CheckThere are some things that set some entertainers apart from the others. They don’t necessarily mean they’ll be better, but they do mean that the person has taken the extra steps of professionalism in entertainment, insurance, and safety.Logos to look for on websites:1. Equity membership logo: Being a member of Equity, the professional performers and creative practitioner’s institute, usually guarantees that the entertainer has been classically trained, or at least displayed a high level of performance ability and professionalism. Again this doesn’t absolutely mean that they’ll be better than someone whom isn’t a member, however it’s always a nice reassurance, as there’s nothing worse than having an entertainer turn up who’s not… entertaining, especially when there’s a tough crowd, amateurism really shines through and can make the situation very awkward.2. Public liability insurance: This is probably the most important if you have more than a few children being entertained. There are so many little things that could go wrong, from a tip over a speaker cable, swallowing a popped balloon, damaging the entertainers or the clients equipment. But if someone has liability insurance at least you know that any injuries to your loved ones are fully covered, and it stops the “who’s fault was it” debate and saves people a lot of money.3. CRB Checked: This is the least important of the three, but it does show that they have gone another extra step to prove that they’re suitable to work with children and in sensitive situations. It doesn’t really reflect the entertainment value, and there’s generally no risk to children at parties when the adults are still there supervising, however it is another nice reassurance if they do have it.

Alternative Financing Vs. Venture Capital: Which Option Is Best for Boosting Working Capital?

There are several potential financing options available to cash-strapped businesses that need a healthy dose of working capital. A bank loan or line of credit is often the first option that owners think of – and for businesses that qualify, this may be the best option.

In today’s uncertain business, economic and regulatory environment, qualifying for a bank loan can be difficult – especially for start-up companies and those that have experienced any type of financial difficulty. Sometimes, owners of businesses that don’t qualify for a bank loan decide that seeking venture capital or bringing on equity investors are other viable options.

But are they really? While there are some potential benefits to bringing venture capital and so-called “angel” investors into your business, there are drawbacks as well. Unfortunately, owners sometimes don’t think about these drawbacks until the ink has dried on a contract with a venture capitalist or angel investor – and it’s too late to back out of the deal.

Different Types of Financing

One problem with bringing in equity investors to help provide a working capital boost is that working capital and equity are really two different types of financing.

Working capital – or the money that is used to pay business expenses incurred during the time lag until cash from sales (or accounts receivable) is collected – is short-term in nature, so it should be financed via a short-term financing tool. Equity, however, should generally be used to finance rapid growth, business expansion, acquisitions or the purchase of long-term assets, which are defined as assets that are repaid over more than one 12-month business cycle.

But the biggest drawback to bringing equity investors into your business is a potential loss of control. When you sell equity (or shares) in your business to venture capitalists or angels, you are giving up a percentage of ownership in your business, and you may be doing so at an inopportune time. With this dilution of ownership most often comes a loss of control over some or all of the most important business decisions that must be made.

Sometimes, owners are enticed to sell equity by the fact that there is little (if any) out-of-pocket expense. Unlike debt financing, you don’t usually pay interest with equity financing. The equity investor gains its return via the ownership stake gained in your business. But the long-term “cost” of selling equity is always much higher than the short-term cost of debt, in terms of both actual cash cost as well as soft costs like the loss of control and stewardship of your company and the potential future value of the ownership shares that are sold.

Alternative Financing Solutions

But what if your business needs working capital and you don’t qualify for a bank loan or line of credit? Alternative financing solutions are often appropriate for injecting working capital into businesses in this situation. Three of the most common types of alternative financing used by such businesses are:

1. Full-Service Factoring – Businesses sell outstanding accounts receivable on an ongoing basis to a commercial finance (or factoring) company at a discount. The factoring company then manages the receivable until it is paid. Factoring is a well-established and accepted method of temporary alternative finance that is especially well-suited for rapidly growing companies and those with customer concentrations.

2. Accounts Receivable (A/R) Financing – A/R financing is an ideal solution for companies that are not yet bankable but have a stable financial condition and a more diverse customer base. Here, the business provides details on all accounts receivable and pledges those assets as collateral. The proceeds of those receivables are sent to a lockbox while the finance company calculates a borrowing base to determine the amount the company can borrow. When the borrower needs money, it makes an advance request and the finance company advances money using a percentage of the accounts receivable.

3. Asset-Based Lending (ABL) – This is a credit facility secured by all of a company’s assets, which may include A/R, equipment and inventory. Unlike with factoring, the business continues to manage and collect its own receivables and submits collateral reports on an ongoing basis to the finance company, which will review and periodically audit the reports.

In addition to providing working capital and enabling owners to maintain business control, alternative financing may provide other benefits as well:

It’s easy to determine the exact cost of financing and obtain an increase.
Professional collateral management can be included depending on the facility type and the lender.
Real-time, online interactive reporting is often available.
It may provide the business with access to more capital.
It’s flexible – financing ebbs and flows with the business’ needs.
It’s important to note that there are some circumstances in which equity is a viable and attractive financing solution. This is especially true in cases of business expansion and acquisition and new product launches – these are capital needs that are not generally well suited to debt financing. However, equity is not usually the appropriate financing solution to solve a working capital problem or help plug a cash-flow gap.

A Precious Commodity

Remember that business equity is a precious commodity that should only be considered under the right circumstances and at the right time. When equity financing is sought, ideally this should be done at a time when the company has good growth prospects and a significant cash need for this growth. Ideally, majority ownership (and thus, absolute control) should remain with the company founder(s).

Alternative financing solutions like factoring, A/R financing and ABL can provide the working capital boost many cash-strapped businesses that don’t qualify for bank financing need – without diluting ownership and possibly giving up business control at an inopportune time for the owner. If and when these companies become bankable later, it’s often an easy transition to a traditional bank line of credit. Your banker may be able to refer you to a commercial finance company that can offer the right type of alternative financing solution for your particular situation.

Taking the time to understand all the different financing options available to your business, and the pros and cons of each, is the best way to make sure you choose the best option for your business. The use of alternative financing can help your company grow without diluting your ownership. After all, it’s your business – shouldn’t you keep as much of it as possible?