Evan Vitale

Evan Vitale – Capital Snapshot

December 10, 2015 by Evan Vitale

By Evan Vitale

In our six-part series on different types of capital, we offered some basic information as to the different types of capital and investors available for your business.

Here’s a quick review:

Debt Capital – This is capital that a business raises by taking out a loan. The loan is normally repaid at a future date, normally with interest.
Equity Capital – Typically you do not need to pay anything back to the investor. Instead, you are selling complete or partial ownership interest in your business in exchange for the capital.
Private Equity – Similar to a bank loan, private equity funds come from private individuals – or a group of individuals – who make investments or loans.
Venture Capital – These funds are usually for startups or growing businesses and come from venture capital firms specializing in building high-risk portfolios.
Angel Investors – An “angel” investor is someone who is typically a family member or a friend who is really investing in the individual. They want your business to be successful, but they are not looking to gain huge profits from their investment.
Investors – Investors are those who seek to grow their investment and earn an ownership stake in your company with their investment.

Evan Vitale – What Is An Investor?

December 9, 2015 by Evan Vitale

By Evan Vitale

(This is Part VI in our series on different types of capital, including debt capital, equity capital, private equity, venture capital, angel investors and investors)

An investor in your business can wear many hats and the term can mean different things to different business owners and types of businesses.

However, usually, an investor is a person who commits capital with the expectation of financial returns.

They are definitely looking to grow their money and, therefore, they generally prefer to minimize risk while maximizing their returns.

In most cases, investors want to call the shots with your business and become part of your team, which might not work for some startups and business owners who don’t want to give up a share of the company.

Evan Vitale – What Is An Angel Investor?

December 8, 2015 by Evan Vitale

By Evan Vitale

(This is Part V in our series on different types of capital, including debt capital, equity capital, private equity, venture capital, angel investors and investors)

While an “investor” is considered as someone who provides financial backing for small startup businesses or entrepreneurs, an “angel investor” is someone who is usually a family member or a friend (or a friend of a family member or friend). They are a little “closer” and connected to you in some way.

Typically, the capital they can provide can be:

A one-time injection of seed money.

Ongoing financial support.

Funds to help with expansion or to buy a piece of equipment.

Angel investors invest in the person rather than in the business. They do want your business to succeed, rather than be on the receiving on of huge profits from their investment(s).

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Check out Evan Vitale on http://about.me/evanvitale.

Evan Vitale – What is Venture Capital?

December 3, 2015 by Evan Vitale

By Evan Vitale

(This is Part IV in our series on different types of capital, including debt capital, equity capital, private equity, venture capital, angel investors and investors).

Venture capital is another type of funding for businesses and startups. However, with venture capital (sometimes called “risk capital”), dollars are typically earmarked for startup or growing businesses.

These funds usually come from venture capital firms that specialize in building high-risk financial portfolios. In these cases, venture capital (also known as “VC”) is given to the startup company in exchange for equity in the company.

These investments are made to firms that have long-term growth potential for above-average returns.

Evan Vitale – What is Private Capital?

December 1, 2015 by Evan Vitale

By Evan Vitale

(This is Part III in our series on different types of capital, including debt capital, equity capital, private equity, venture capital, angel investors and investors).

Private capital is similar to a bank loan as it is indeed money that is provided to a business. However, the capital “loan” doesn’t come from a bank; government entity or from the public by selling stocks.

Instead, private capital comes from private individuals – or a group of individuals – who make investments (or loans) that are not regulated by the government or by the rules of a public exchange.

A private capital investment typically happens as a one-on-one transaction between the business and the investor. Therefore, the business can seek private capital anytime it needs it: startup, growth, etc.

Evan Vitale – What is Equity Capital?

November 26, 2015 by Evan Vitale

By Evan Vitale

(This is Part II in our series on different types of capital; including debt capital, equity capital, private equity, venture capital, angel investors and investors.)

Equity Capital, when compared to debt capital, is different in that you do not need to pay anything back to the investor.

No, it’s not a free loan.

Instead, you are selling complete or part ownership interest in your business in exchange for capital. Typically, an equity capital situation may arise with large-scale businesses who are running short of funds.

A common source for equity capital is from family members and relatives. In fact, in a recent survey, 30% of entrepreneurs said they raised all or part of the capital they needed through family members.

Be sure to talk to your business attorney before seeking equity capital. Know the risks before your seek this type of financing.

Also see: What is Debt Capital?

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Check out another blog by Evan Vitale here: http://evanvitale.com

Evan Vitale – What Is Debt Capital?

November 24, 2015 by Evan Vitale

By Evan Vitale

In our next few blog posts, we’ll discuss different types of capital, including equity capital, private equity, venture capital, angel investors and investors.

But first, let’s talk about debt capital, which is the most common type of capital.

Debt capital is the capital that a business raises by taking out a loan. The loan is normally repaid at a future date, usually with interest.

Typically, debt capital is obtained from your regular bank or, if the loan is large, then it may come from an investment bank. Consider a debt capital loan just like taking out a loan for a home mortgage or for an automobile.

The big difference between debt capital and other types of capital is that the lender doesn’t become part owners of your business. However, some debt capital lenders expect to earn up to 10% interest (or more) off the loan.

Debt capital is very common among entrepreneurs, who the investor believes most likely will pay off the debt by an agreed-upon deadline.

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View presentations by Evan Vitale at http://www.slideshare.net/evanvitale.

Evan Vitale – Allowing Your Team To Enjoy The Holidays

November 18, 2015 by Evan Vitale

By Evan Vitale

Now that we’re closer to Thanksgiving, Hanukkah, Christmas, New Year’s Eve and many parties, gatherings and events, it might be hard to keep your team focused and productive.

Unfortunately, work productivity does tend to slack off and suffer during the holidays. It’s nearly impossible to avoid it, but you still need to keep everyone focused in order to meet deadlines and continue work production.

Here are some tips to help keep everyone on track while, at the same time, allowing everyone to enjoy the holiday spirit:

* Plan vacation days and work days well in advance. This lets everyone know what days your office will be closed (or closing early) and prevent everyone from taking the same week off for holiday vacations and leaving you with an empty office.

* Consider allowing some employees the option of working from home. While this might be difficult with all the holiday distractions, employees can check e-mail regularly and produce reports and statements between the feasts and eggnog toasts.

* Allow and plan for a holiday office party. It’s almost expected in every office. Your team has worked very hard over the past year, so let them celebrate the season together. It can be as simple as a pot luck lunch or, perhaps have food catered in. Some small offices take their staff to lunch at a nice restaurant and, yes, allow employees to have a small gift exchange, too!

* Continue to take care of your customers and clients, but do be careful in launching any new programs, services or products during the holiday season. Remember, your customers and clients are also celebrating the season as well and probably won’t have much brain space for any new initiatives.

* Be reasonable. Hey, it’s the holidays! Don’t be Mr. Scrooge and have your employees working late on Christmas Eve – or any other evening for that matter. This is the time of the year that families matter the most, so allow them to be with their families and friends. They’ll appreciate it.

Finally, make sure that you are giving yourself a break too to enjoy the holiday season.

Evan Vitale – Private Equity Billionaire Sponsors 300+ Kids

November 12, 2015 by Evan Vitale

By Evan Vitale

Business Insider published an interesting article recently in which a private equity billionaire sponsored 350 New York City school children AND then sent them all a personal note about their report cards.

Steve Schwarzman, also known as “King of Capital” says he got involved with the Inner-City Scholarship Fund knowing that nearly 70% of the kids are either at or below the poverty line and 90% are minorities. Schwarzman reviews each child’s report card, absent reports, etc., and then hand-writes them a personal note on his stationery.

Schwarzman and his wife, Christine, have donated over $48 million to the Inner-City Scholarship Fund since 2001.

You can read the full story here:

http://www.businessinsider.com/steve-schwarzman-comments-on-report-cards-2015-11

Evan Vitale – 5 Distracting Habits Eating Your Productivity

October 30, 2015 by Evan Vitale

By Evan Vitale

Productivity is the name of the game and in today’s ultra competitive market, understanding the pitfalls of distracting, time-wasting behavior can help rearrange your day in a more efficient manner. If “you are what you eat,” you are also what you dedicate your time to. Bad habits like checking your email every 15 minutes, aimlessly roaming the office, or perfectionism may become your downfall as important projects slip through the cracks and your focus and attention lay elsewhere. Here are 5 bad habits you should break in order to make the most of your work day.

1. Stop checking your email every 15 minutes.

If you are one of the 32% of Americans who respond to an email within 15 minutes of receiving it, or the 23% who respond within 30 minutes, you are checking your email way too often. Most of the mail you receive is classified as non-urgent with a typical 24-48 hour response window. In high pressure situations when you know someone may be expecting an immediate response, it may make sense to check your email frequently; however, in the future, take some time to focus on one project at a time, devoting a solid 60 – 90 minutes on the task before disrupting your flow and checking in external situations.

2. Along the same lines, stop multi-tasking!

We all believe we’re the best multi-tasker we know, and many companies welcome employees to feel said way. However, in truth, your brain primarily focuses on one task at a time. Constantly switching between browser tabs, readings, emails, write-ups, and the likes will make you less productive. If the tasks relate, gently intertwine them. Otherwise, schedule your time appropriately, scheduling one task after the other.

3. Perfectionism is getting in the way of your best work.

You should always double check your presentations, re-read emails, and generally treat your work with caution. Yet constantly micro-analyzing your own work will create a productivity deficit that may be hard to recover from. Perhaps try a school work approach by composing a rough draft, walking away from the project, and then returning at a later time when you’re less critical, less fatigued, and have a better perspective. Efficiency is key in a fast paced environment and in order for you to yield high quality results, you have to let go of perfectionism – no matter how much of an oxymoron is may seem to be.

4. Disorganization will be the bane of your productivity only if you let it.

Disorganization is killer. Whether it’s your planner, iCal, Google Drive, or work station, staying organized will help keep you on task and focused. Many fail to recognized how a messy desk can in fact cause subconscious stress and undo anxiety. Disorganization may even tempt you to procrastinate actual work, wasting copious amounts of time working through the chaos instead of producing results.

5. Answering every distracting invitation aimed your way in the affirmative will stifle you.

On average, employees are distracted every 11 minutes. Because of this, your momentum is never quite revved up to full capacity. After you’ve been interrupted from your work, you’re more likely to participate in bad habits like checking your email as mentioned above. Additionally, if you have an issue saying “no,” yes-man behavior could land you in a predicament where you now have way more tasks than you can effectively complete, leading to excessive multi-tasking and disorganization.

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