Future Financial Challenges for Small Businesses

Traditional banks and financial institutions are built to service large businesses. This means their systems and processes are designed to assess risk in terms of big businesses with varied resources.

Some of the problems originate from simple data-gathering issues. The data isn’t consistent because three main credit bureaus are deciphering and delivering information about a candidate’s creditworthiness. Underwriting asks for endless reams of data about a business’s revenue. They also want to know about lines of credit and borrowing history. The time spent reconciling that information can also feel endless.

Worst of all, many lenders will use a small business owner’s personal credit risk as a symbol of the business’s risk. Because these lenders use scoring models designed for either big businesses or individual consumers, they’re forced to try to apply their template for individuals to a small business. This results in the need for lots of judgment calls and system overrides. The more hoops a business owner has to jump through, the more likely he is to get caught in one of them.

That’s the process a small business endures with just one lender. Multiply that by five if an owner is shopping rates, and they are juggling several lengthy processes. Also, they are unearthing different sets of information for each. Because each asks for unique information, it’s difficult for many business owners to understand how they can improve their chances of accessing credit. Thus, they may find themselves in a loop of credit madness, using the same techniques to generate different outcomes and never knowing why.

The Options Shaping the Future of Finance in Small Business

Traditional lenders could be great options for small businesses. However, they would need to develop systems to evaluate small businesses by standards specific to their size and resources. Updating their scoring models, automating data collection, and streamlining their funding processes would benefit both. This would better indicate the degree of success a business could achieve with a lender’s help. Alternative finance, however, offers a window into what traditional lenders might hope to become.

Online Lending

Online lenders offer loans similar to bank loans. Yet, they offer a more streamlined product. These loans typically have less stringent qualifying requirements in terms of revenue, tenure, and credit rating. Their processes are built on online platforms that allow for application and funding in the same space. Therefore, they demand fewer reviews and offer enhanced accessibility. These lenders eliminate lengthy wait times for qualification. Additionally, they assess more than credit history. Therefore, small businesses do not have to offer extensive collateral.

Kabbage, an online lender, streamlined its application process. They focus on live data connections to analyze a company’s real-time business performance over credit scores.  A candidate must have been in business for a minimum of one year and achieved $50,000 in revenue in the past year or $4,200 per month over the past three months. This allows businesses to access lines of credit up to $250,000 with a free application that only takes ten minutes.

Kabbage renders its decisions in real time. This means small businesses can use their lines of credit upon approval. It also highlights the benefits for users. Owners can maintain equity and control of their business. They keep their personal finances separate. Also, they avoid alienating those closest to them by accessing funds through a third party instead.

Crowdfunding

Crowdfunding platforms are another alternative financing outlet. This online pitching asks small business owners to convince others that their companies are worth investing in. Crowdfunding asks people to invest in a given business, product, or campaign. But, the funds often don’t need to be repaid directly. Small businesses may issue lenders a free version of the item they supported or a percentage of future revenue.

Fundable is a crowdfunding platform dedicated solely to businesses. The site educates users on the fundraising process. They have built guides on crowdfunding, business operations, and investing.  It prohibits certain types of businesses and charges a monthly rate in lieu of taking a cut of the money earned. Also, Fundable allows users to determine whether they want to give rewards or equity to investors.

Invoice Factoring

Invoice factoring is an alternative funding method. It relies on outstanding invoices rather than a business’s credit history. In this model, an invoice factoring company purchases a small business’s unpaid invoices at a discounted rate. This puts the focus on customers’ ability to pay rather than on the small business.

BlueVine is a company offering invoice factoring. It has built a streamlined dashboard that allows small businesses to attach the invoices they want funded. Small business owners can see the rebates the same day. These are advanced at rates of 85 percent to 90 percent of the invoices selected. BlueVine does not require much paperwork.

Online Banking

Online banking also defines the future of finance in small business. It simplifies previous processes while enhancing the services of its brick-and-mortar sisters. Banking apps make it easy for small business owners to keep tabs on their finances with one click. They can handle everything from transfers to deposits without visiting a branch. Many online banking platforms offer services geared specifically toward small businesses. They integrate with QuickBooks and other SMB financing software. Also, these online banks allow in-platform invoicing and payment collection. All of these automated services save small businesses time and streamline the tools used.

Chime is an online bank account built to help users save money. Its Automated Savings program empowers entrepreneurs to automatically set aside money or round up their purchases, putting the “extra” into savings. Chime offers real-time transaction alerts and daily balance updates to keep them on top of their finances. And, they can seamlessly transfer funds between accounts, pay bills, and issue checks. Unlike many big banks, it doesn’t charge monthly fees, overdraft fees, or transfer fees. Also, users don’t have to maintain a minimum balance.

Small businesses aren’t earning funding attention at the same rate as their bigger competitors. To avoid the roadblocks of trying to compete with big businesses that have vast resources, small businesses should consider alternative financing.

This story originally appeared on Due 

Katalatto a Bit: 7 helpful blockchain ideas could be used by Small Businesses

As Katalatto Explained in October 2017, Blockchain is a method of recording data – a digital ledger of transactions, agreements, contracts – anything that needs to be independently recorded and verified as having happened. The big difference is that this ledger isn’t stored in one place, it’s distributed across several, hundreds or even thousands of computers around the world. And everyone in the network can have access to an up-to-date version of the ledger, so it’s very transparent.

Blockchain technology is changing the way we store and transfer information in a big way. It is the revolutionary technology behind Bitcoin, but it has so much more to offer than a platform for cryptocurrency.

Related:  Katalatto Explains Bitcoin

The great benefit of Blockchain for small businesses is that it is a cheaper and more secure way to use applications. Here are Katalatto Guides the top 7 Blockchain applications that we think small business should seriously consider.

Bitwage

There are a number of ways your small business can benefit from the implementation of Bitwage.  First and foremost you will save your company at least 25% in banking fees. You can split this saving between yourself and your employees so that you pay them more but it still costs you less. Payment is sent and received within 10 minutes, so your employees can be paid on the day or however they wish to receive it.  It doesn’t stop there. If you are making International payments, the fees and processes are exactly the same. So everyone wins with this system. Once Bitwage becomes widely known, people will prefer to work for companies who have implemented their payment system, over those who still use the traditional banking method.

Uproov

Whatever your business, there is bound to be an occasion where people are in disagreement with the facts. Oftentimes there is no way to prove who is right. Uproov has designed an application that immediately timestamps, geo tags and locks an image as soon as it is taken. It is impossible to make any changes to the image afterwards, therefore giving 100% proof of an event or the condition of something. This prevents fraud and gives the customer reassurance that what you see is what you get.  Whether you have an online shop, insurance company or claim, renting a car or need proof that something has been done, the possibilities are endless with Uproov. It can even be used to take images of important documentation such as contracts or notarised letters.

Filament

Filament is a secure long-range wireless network that enables you to build your business from anywhere. You don’t need to be an expert on security as this is all inbuilt in the application. It has a range of products available. Their Smart Vending app enables you to keep on top of stock levels in vending machines. This means you only send someone to restock the machine when necessary and can keep a track of inventory. Asset Tracking allows you to track the location of equipment in remote areas using GPS receivers. It will even tell you if the equipment is functioning correctly. For Health and Safety, Filament have designed patch-enabled devices which can be placed in safety equipment such as hard hats and safety clothing. These patches can detect an accident such as a fall and even monitor the environment for potentially dangerous materials.

Storj

Storj is a decentralized blockchain-based storage solution. In other words, it is like a cloud that is shared by the community. It could potentially be the largest cheapest and most secure cloud available. It works by taking your file, shredding it, encrypting it and then spreads all the little bits across its network. Only you have access to the encryption keys so no one else can access your information. Because it is spread around, it makes it impossible for someone to hack into a server and steal your stuff. The other great benefits of having a shared network is that you wont have any downtime and you get a faster speed without having to pay any extra. The implication for a small business is that you don’t have to pay for security, or extra storage or speed and you know everything is safe. It keeps your overheads low and your security high. Another bonus to using Storj is that you can rent out free space on your hard drive, which generates income for your business.

ShoCard

ShoCard is a virtual identity card that you use on a mobile app. The data is not available in any form to a third party and cannot be changed. It uses strong security techniques like multi key encryptions, two-factor authentication, data matching, which makes it suitable for many industries. The set up is simple and the app is very easy to use. It makes your company easy to do business with and cuts the cost of implementing the banks current authentication systems.

Related: 10 invoicing services for SMEs.

SkuChain

SkuChain is changing the way the supply chain for business is managed.  Using blockchain technology enables companies to manage and distribute products quickly and smoothly, which in turn increases profitability. Using secure Smart Contracts to govern the complete purchase cycle ensures a smooth and consistent relationship with suppliers. SkuChain use crypto-serialization codes to track the flow of products and Inventory Financing, which takes the risk out of transactions. This helps to source capital that would not otherwise be available.

Gyft Block

Gyft Block has designed a blockchain application that will store your gift cards on your mobile device. This can be a cost-effective way for small businesses to reward their customers’ loyalty without the expense of having physical cards printed and delivered. Using the blockchain platform also gives the added benefit of secure access so the gift card can’t be used by anyone else. Transactions are quick and easy. Simply scan the merchants QR code at time of purchase, using the mobile app.  The customers’ card is debited and the balance updated immediately.

 

Katalatto Guests: Taksiciler Uber’e Karşı: Aciz Devletten Piyasaya Sığınmak

Türkiye’de şu sıralar taksicilerin gizli müşteri adıyla Uber çağırıp şöförü dövmesi gündemin ana maddelerinden.

İşte Özgür Özer‘in düzensiz.org-da UBER ve olası düzenlemelerle ilgili kaleme aldığı o yazı.

Türkiye’de olmayacak oldu, AKP ile CHP aynı noktada buluştu. Çocuk istismarına karşı dahi ortak tavır alamayan iki büyük siyasi parti taksicilerin çıkarları için aynı politikayı yürütme kararı aldılar: Uber’i İstanbul’dan sileceklerini iddia ediyorlar. Bu noktaya nasıl gelindi?

Şoförler odası seçimleri yerel seçimlerle yarışır şekilde çekişmeli geçer. Bazen ölümlü kavgalar bile çıkabilir.

Son günlerde kısa mesafeli şoförlü araç kiralama uygulaması olan Uber gündemde kendisine önemli bir yer buldu. Taksiciler Uber uygulamasının İstanbul’da yasaklanmasını istiyor. Hatta “sarı öfke patlamak üzere” sözleriyle CHP milletvekili Barış Yarkadaş bu durumun tespitini yapıyor.

Türkiye’de Toplu Taşımanın Durumu

Ülkemizin en çok kullanılan sosyal medya mecralarından birisi olan ekşisözlük’teki en popüler başlıklardan birisi taksicilere küfür etme amacıyla oluşturulmuştur. İstanbul’da turistleri gereksiz gezdiren; kısa mesafede, yağmurlu havada yolcu almayan taksiciler meşhur. Ankara’da daha ziyade sahte para veren, alkollü yolculara yanlış para verdiğini söyleyerek, mesela 50 lira verenin 5 lira verdiğini iddia edip üzerini talep eden taksiciler duyulur. Ayrıca gece vakitlerinde taksiye binen kadın arkadaşlarımız bu araçların plakalarını genellikle mesajla tanıdıklarına atar, zira taksici tarafından saçma sapan sözlere, tacize varan davranışlara maruz kalmak yaygın şikayetlerden birisidir.

Ankara’da mavi ve beyaz özel halk otobüsleri trafik kurallarından muaftır. Şaşırtıcı gelebilir ancak kırmızı ışıkta geçerler, yüzün üzerinde yolcu taşırken trafikte makas atarlar, ani fren yaparlar…

Bir zamanlar bu konuda bir şeyler yapma gereği hissedip defalarca Büyükşehir Belediyesi’nin şikayet hattı olan Mavi Masaya, bazen telefonla bazen de otobüsten inerek yüz yüze polise, BİMER’e şikayetlerde bulundum. Tabii ki bir çözüm elde edemedim, zira devletin gücü hat verdiği ve denetiminde olan toplu taşıma araçlarına yetmiyordu. Pes ettim. Devlet de sonuçta soyut bir kabul, bazı noktalarda güçsüz kalabiliyor.

Uber ile Çözüme Doğru

Devletin sınırlı sayıda araca tahsis ettiği plakayı taşıyan taksilere binerken potansiyel riskleri hesaplamak, özel halk otobüslerine binerken nasıl bir trafik canavarlığına maruz kalacağını düşünmeyi kabullenmişken yeni çağın ürünlerinden birisi olan Uber ile tanıştık. Türkiye’de şimdilik sadece İstanbul’da olsa da taksi yerine daha uygun ücret ile insani hizmet alabileceğimiz, sorunumuz olursa, devletin aksine, çözüme ulaşmamıza yardımcı olacak bir şirketin arkasında durduğu bir toplu taşıma yöntemi insanları heyecanlandırmaya başlamıştı. Üstelik araç paylaşım hizmetini devreye alması toplu taşıma sistemini rahatlatacak, özel halk otobüsleri ve dolmuşlara pahalı da olsa çok daha kaliteli bir alternatif sunacaktı. Daha fazla para vermek durumunda kalsa dahi insana yakışır hizmete erişim için taksi yerine Uber’i paylaşanların sayısı gittikçe arttı. Taksicilerin isyanı da işte tam burada başladı: Kalite rekabeti yapamayacaklarını bildikleri Uber’i yasaklatmak için lobi çalışmalarına başladılar.

Ankara’da her seçim dönemi taksi durakları yenilenir: Rant paylaşımında pazarlık konularından birisidir bu.

Türkiye’nin Gerçek Sahipleri Olarak Şoförler Lobisi

Ülkemizin gerek gündemi oluşturan, gerekse yapısal olarak sürekli yaşadığı sorunları çözmek için iktidar ve ana-muhalefet partilerinin bir araya geldiğine pek tanık olmayız. Ancak taksicilerin hizmet kalitesini yükseltmek yerine lobi ve rant güçleri ile rakiplerine karşı AKP ve CHP’ye siyasi pozisyon aldırması ilginç bir gelişme. Şehirli okumuş gençlerin sorunları için hiçbir çaba sarf etmeyen, çocuk evliliği gibi şiddetli bir konuda bir araya gelemeyen partiler taksicilerin iktisadi çıkarı için neden canhıraş mücadele ederler?

Related: Katalatto Explains P2P Economy

Ankara’da her seçim dönemi belediyeler taksi duraklarını yeniler ve bunun reklamını yapar. Şoförler odası seçimleri siyasetin tam ortasındadır, belediye başkan adaylarının açamayacağı boyutlarda seçim ofisleri bu seçimlerde kullanılır. Bütün dolmuşlar ve öğrenci servisleri afişlerle donatılır. Garip bir ortamdır: Şoförlükle en alakasız insanlar bile iddialı adayların isimlerini ezberler, suretlerine tanıdık hale gelir. Açık konuşalım: Bu kadar büyük telaşenin sebebi toplu taşıma piyasasına hakim olanın çok büyük rant elde edecek olmasıdır. Bu rantı da hangi partili olursa olsun yerel siyasetçilerle paylaşırlar.

Ranta Karşı Teknoloji, İlerleme Nasıl Olacak?

Teknolojik gelişme ile birlikte gelecek olan işsizlik çokça tartışılan bir konudur. Bizde ise bu konu ne zaman açılsa hep anlatılan bir hikaye vardır: Osmanlı’ya matbaa gelecektir ancak işsiz kalacak hattatlar mağdur olmaması için bu gelişme ertelenir. Matbaa devrimi benimsendiğinde ise atı alan Üsküdarı çoktan geçmiştir.

Taksicilerin çıkarı için mobil uygulamaya savaş açmak, onu iç güvenlik tehdidi olarak göstermek benzeri bir durumdur. Bugün konumuz taksiciler lobisi, peki yarın farklı bir sektörde inovasyon yapacak bir girişimci kimlerin ayağına basacağını, kimlerin arpasını keseceğini mi hesaplamak zorunda kalacak? Bürokrasiden çıkan ani kararlar ile köklü şirketlerin batırıldığı bir ekonomide yeniliğe uygun zemini sağlamayı dert edinmesi gereken siyaset rant peşinde mi koşacak?

Bernard Lewis’e atfedilen bir söz vardır: “Batıda zengin olup ve siyasete girilir, doğuda ise siyasete girip zengin olunur.” Türkiye’de devleti yönetenler tarihsel olarak rantı kimseye kaptırmamayı temel düstur edinmişlerdir. Bu herkesin malumu bir olgu olsa da benim aklıma farklı bir şey geliyor: Ya devletin düzenlemeyi başaramadığı toplu taşıma hizmetini serbest piyasa, yani toplum teknolojinin imkanlarıyla kendisi denetlerse? Peki toplum bundan sonra devletin başarısız olduğu diğer alanlarda da kendi gücünü kullanmayı seçerse ve siyasetçilerin rant üretebileceği zemin gittikçe küçülürse?

İşte buna hiçbir siyasi parti izin vermez, veremez.

Türkiye’de Genç Girişimcilerin Çoğu Neden Batıyor?

Bir çok şirketin kapanış işlemlerini yapmış bir sözlük yazarı, genç girişimcileri batmaya götüren sebepleri sıralamış

1. Yüksek vergi oranları

Türkiye  ekonomisi doğrudan ve dolaylı vergilerle ayakta durmaya çalışmaktadır. cari açık arttıkça ve beklenen tahsilat performansı gerçekleşmeyince devlet vergilere yüklenmektedir. bir kere denetim mekanizması zayıftır. genelde denetimde yakaladığımı öperim mantığı hüküm sürmektedir. bunun en büyük nedeni sektörel bazda siyasi kaygılar ve denetimin maliyetli olmasıdır keza denetimi yapacak kalifiye memur sayısı da azdır. örneğin tüm eczacıları denetime tabi tutmaya karar verseniz mutlaka işin ucu birilerinin dayısına ve yeğenine denk gelir , mecliste biri ricada bulunur ve denetim çıkmaza girer. keza denetleyip bir kusur bulunsa da bir şekilde uzlaşmayla caydırıcılıktan uzaklaşıp kayıt dışı ekonomi göz ardı edilir. torba yasalarla mükellef affedilip kısa sürede tahsilat yapmaya çalışılır. bu konuya gelişmemiş ve gelişmekte olan diğer ülkelerin uyguladığı tek çözüm yakaladığıma geçiririm mantığıdır. tabi bu da işi kuralına göre oynayan düzgün girişimciye yük bindirmektedir. örneğin bu yakaladığımı öperim uygulamasını bir yolu denetleyen trafik memurunun hareketlerine uyarlarsak memur her geçen taşıtı denetlemek yerine şüphelendiği tek tük aracı denetime tabi tutup sağlam cezalar geçirmesine benzetebiliriz.

Tabii devlet herkesi denetlesin mantığının zorlayıcı olduğu ve bürokratik kaosa neden olacağını düşünebilirsiniz fakat gelişmiş ülkeler bunu yoğun teknoloji kullanımı ve istatistik ağırlıklı denetimle çözmektedir. az iş gücü , çok teknoloji , çok sayısal veri işin çözüm noktasıdır. yoksa vergi ve sigorta denetmenlerinin ellerinde dosyayla sokak sokak gezmesi zaten olası bir çözüm değildir. örneğin eczacılık sektörü için işletmenin bulunduğu yere , cirosuna ve cari rakamlara göre devlet belli standartlar belirleyip bunun altında kalan işletmeleri doğrudan denetime tabi tutmaktadır. bizde eğer şikayet yoksa , devletten iade talep etmiyorsanız ve göze batacak faaliyetlerde bulunmazsanız kolay kolay denetime tabi tutulmazsınız. yani çoğu zaman devlet alacağında şahin vereceğinde serçe kesilir. doğru teknolojiyi kullanım kısmında ise ödeme kaydedici cihazlarla pos makinelerinin birleştirilmesini örnek gösterebiliriz. eskiden firmalar kredi kartıyla tahsilat yaptıklarında fiş fatura kesmez genel satış tutarları içinde bunu eritirdi. şimdi ise 100 liralık kredi kartıyla satış yapsa hemen yüz liralık fiş otomatik kesilmekte kdv’si de hesaplanmaktadır. tabi işini bilen esnaf bunu yine bir şekilde eritmekte fakat eskiye nazaran oran azalmaktadır.

Tabi burada genç girişimci yeni kurduğu işletmesinde kurumsal olarak faaliyet gösterip idealist bir tutum içine girerse yüksek vergi oranı ve cezalarla karşılaşacak şark kurnazı işletmelerin vebalini ödeyecektir. her şeyi dayı yeğen ikileminde halletmeye çalışan ve fatura kesmeye alerjisi olup , devleti sürekli dolandırmaya meyilli işletmelerle rekabet edemeyecektir.

Yüksek vergi oranları işletmenin katilidir. sizi vergi kaçırmaya dolayısıyla diğer işletmelerle rekabet etmeye çalışmaya zorlamaktadır. yüzde sekiz-onsekiz kdv , yüzde yirmi kurumlar vergisi , yüzde otuz beşi bulan kademeli gelir vergisi , ilan reklam vergisi , çöp vergisi , sicil ödemeleri , oda aidatları derken beliniz bükülür , ilk açılıştaki heyecanınız yerinde kalmaz. devlet vergisini ödemeyen işletmenin yükünü sizin sırtınıza yükler. çalışanlarını çiçek gibi giydirdiğiniz , her türlü teknolojik altyapıyı kurup kurumsal yönetmeye çalıştığınız şirketiniz karşıdaki malatya pazarının karşısında eriyip gider. eninde sonunda devlet malatya pazarını da dürter ama uzlaşmayla , torba yasalarla üç kuruş ödeyip kurtulurlar siz senelerce ödediğiniz vergilerle kala kalırsınız.

2. Kira

Işletmeleri batıran bir diğer faktör kira olayıdır. kirada bilindiği gibi yüzde yirmi stopaj vardır. devlet sizden mal sahibinin gayri menkul gelirinden yüzde yirmi kesinti yapıp muhtasar beyannameyle ona ödemenizi ister. işyeri kiralarken genelde bu pek konuşulmaz. mal sahipleri stopaja karışmaz. benim elime x lira geçsin sen gerisini öde der. bir kaç ödenmeyen kira ve stopaj birikince işletme içinden çıkılamaz duruma gelir. dikkat edersiniz batan firmalar genelde ya işçi maaşlarını ya da kirayı ödeyememekle yakınırlar. tabi kurnaz esnafımız genelde işyeri sahibiyle anlaşıp düşük kira üzerinden kontrat yapıp az stopaj öder. bankaya yatırma zorunluluğu olan tutarı mülk sahibi hesabına yatırıp geri kalanı elden öder. her şeyi kurulanı uygun yapmak isteyen eğitimli genç girişimci yoğun kira gideri ve stopaj yüzünden bunalır. burada bir tavsiye olarak şirketlere ait mülkler kiralandığında stopaj olmadığı bilgisidir. yani şirketten işyeri kiralarsanız stopaj kesintisi olmaz , şirket size fatura kesip kdv tahsil eder siz de bu kdv’yi ödeyeceğiniz kdv’den indirim konusu yapabilirsiniz.

3. yüksek sigorta primleri ve kurumsal personel ödemeleri

Bir sigortalı için ödenen primler maaşlar göz önüne alındığında oldukça yüksek kalmaktadır. örneğin iki asgari ücretli sigortalı çalıştıran bir işyerinin sigorta pirim tahakkukları indirimli 1.200 indirimsiz 1.350 tl. civarı olmaktadır. bunun bir kısmı işçiye ait olsa bile genel ödenen sigorta tahakkuku nedeniyle genelde tamamı işvereninmiş gibi algılanır. sigorta primleri diğer yasal yükümlülüklerle birlikte yeni işletmelere çok ağır gelmektedir. ayrıca işçilerin asgari geçim indirimleri ve fazla mesai ücretleri de dikkat edilecek bir konudur. çoğu esnaf bunları ödemez hatta lafını bile yapmaz. örneğin işçilere vereceği asgari geçim indirimini ödemiş gibi muhtasar vergisinden düşer ama işçilere ses bile etmez. işçisine bayram mesaisi , fazla mesai veren , asgari geçim indirimini ödeyen , primini aldığı maaş üzerinden tahakkuk ettiren firmanın ödeyeceği sigorta primi fahiş tutarlara ulaşmaktadır. yine kurumsal girişimci işletmemiz üzülmektedir. devlet çalışanların çoğunun asgari ücret üzerinden sigortalanıp vergi kaçırdığını işçinin hakkının yendiğini bilir ama buna göz yumar. gerçek maaş üzerinden primleri ödeyenlerden ne kopardım kardır diye düşünür. kalkıp da firmaları denetlemez. şikayet olursa gider bakar . benim tavsiyem firmaların indirim ve teşvikleri iyi takip edip muhasebecileriyle iletişim halinde olmalarıdır. örneğin borcu olmayana , kadın ve genç işçi çalıştırana , istihdam sayısını artırana ve işkur bağlantılı çalışmalara güzel teşvikler sağlamakta. yani kadın ve genç işçi çalıştırıyorsanız , yeni istihdam yaratıyorsanız ve işkur bağlantılı personel alımı yapıyorsanız ödediğiniz primler ciddi manada düşer.

işçi maaşları da çok tehlikeli bir konudur. ne yapın edin ilk önce işçi maaşlarını ödeyin. bu hem sosyal sorumluluk hem de işletmenin sağlığı açısından çok önemlidir. maaşını zamanında almayan işçinin motivasyonu düşer , işyeri gevşemeye ve huzur kaçmaya başlar.

4. Makro düzeydeki işletmelerle, internet ticaretiyle ve ithal mallarla rekabet

Günümüz ekonomisinde küçük ve orta boy işletmelerin makro boyuttaki işletmelerle rekabeti gittikçe zorlaşmaktadır. örneğin nalburdan aldığınız 5 liralık tornavidayı hafta sonu süpermarkette 1 lira görmeniz oldukça olasıdır. her yerde hafta sonu kampanyaları , ekstra indirimler , bonuslar , kartta biriken puanlar üstüne avm’lerin çekiciliği. büyük firmalar zararına satış yapsa bile onları etkilemez hatta müşteri çekerek pozitif fayda bile sağlayabilir ama etrafındaki üç beş tane işletmeyi kolayca batırabilir. iş ağınızı ve portföyünüzü kurarken bunlara çok dikkat etmeniz lazım. sattığınız hizmet veya mal sizin satamayacağınız kadar ucuza satılırsa ne yapabileceğinizi düşünmeniz lazım. örneğin siz çinden elli çuval telefon kılıfı getirdiniz ve işi ucuza kapattığınızı düşünürken başka biri bin çuval getirip bunu süpermarket ağına yayıp sizin malınızı maliyetini yükseltip ticari faaliyetinizi çökertebilir. özellikle internet harici mal ve hizmet satacaklar çok dikkatli olmalı. her malın her zaman daha ucuzu ve kolay ulaşılabileni her zaman vardır. diğer unsurlarla farkındalık yaratmak daha önemli.

5. Tahsilat sıkıntısı

Genel olarak perakende satışta etkisi fazla olmasa da toptan ticarette hayati önem taşır. tahsil edilemeyen birkaç çek-senet ve ödemesi gelmeyen cari hesap başlangıçta size önemli gelmese de zamanla bunlar kanser gibi siz önüne geçemeden çoğalır ve kendinizi elinizde çiçek buketi gibi senet ve çeklerle banka banka dolaşırken bulursunuz. tabi tüm bu durum ödenemeyen çeklere vesile olur ve gece rüyanızda bile çeklerle boğuşursunuz. çekleri ve senedi tutarından çok daha aza bozdurur sattığınız maldan zarar etmeye başlarsınız.

6. Fütursuzca çekilen krediler

işletmelerin yeni kurulduğunda oldukça sık yaptığı bir hatadır. şirketim büyüsün , yatırım yapayım , çok kazanayım derken bir anda masanızın üstü on çeşit bankadan ödeme planlarıyla dolar. krediyi krediyle ödemeye başlarsınız . işçi maaşları , çekler her şey krediyle ödenir. aldığınız malın maliyeti ödediğiniz faizler ve banka masraflarıyla çok fazla yükselir. belli süre sonra ödediğiniz faiz tutarını ve faiz oranını düşünemezsiniz bile. bankadan para gelsin yeter diye düşünürsünüz. görünürde her şey güzel ilerlemekte fakat buz dağı yavaş yavaş yukarı doğru yükselmektedir. zamanla kendi kredi kartınız ve eş dostun kartıyla kendi pos cihazınızdan satış yapmış gibi hesabınıza para girmesini sağlamaya başlarsınız ama zamanla onlar da şişer.

7. kişisel ego ve toplumsal yapı içerisinde yukarıda yer alma arzusu

Yeni üniversite mezunu olmuş ve işletme kurmuş genç girişimci veya ortaklıklarda çok sık yapılan bir diğer hata da kendini sektörde uzun süre yer alan firmalarla kıyaslama bir an önce başarılı olma isteğidir. yeterli seviyede kazanç olmasa da lüks araçlar kiralanır , işyeri merkezi son derece lüks dayanır döşenir , en düzgün en tahsilli personel işe alınıp yüksek maaşlar verilir. tanıtımlar , fuarlar , her yere verilen reklamlar , abartı marka giderleri derken masraflar inanılmaz boyuta ulaşır fakat ortada elle tutulur bir satış performansı yoktur. böyle durumlarda ihtiyatlı davranan klasik işletmeler daha uzun süre dayanıp ayakta kalabilmektedir. türk dizilerindeki holding patronu gibi masanızın üzerinde imac ve iphone 7 ile güzel sekreterinizin getirdiği türk kahvesini yudumlarken yirmi küsür yaşında masanın üzerindeki elektrik faturasına bakarken bulursunuz kendinizi. dışarıdan kimse anlamaz “x bey” bir anda elinde cv ile dolaşan ” eleman x” olur. çalıştırdığınız adamdan borç isterken bulursunuz kendinizi.

8. yanlış ortaklıklar ve akraba ilişkileri

Imkanınız varsa ortaklığa girmeyin. bazı ortaklıkların yüksek getirisi olsa da boku çıkma ihtimali de oldukça fazla. özellikle akrabanızla iş ilişkisi kurmamaya çalışın. iş biter ama akrabalık bir şekilde hep vardır. alacağınız olur isteyemezsiniz , bir şeye canınız sıkılır söyleyemezsiniz , amca yeğen ilişkisiyle ezmeye çalışırlar , hiç alakasız akrabalar konuya müdahil olur. en kötüsü işletme kapanır gider ama aile içinde konu bitmez yine huzurunuz kaçar.

 

Katalatto Guests: Do You Wish to Become Unstoppable with Self-confidence?

Rob Duffy is a Personal & Business Coach, Regional Director, and board member of two organizations. He is also a startup entrepreneur.

He completed his undergraduate degree in 2013 in Social Sciences (with Psychology) and became accredited with the Irish Lifecoach Institute in early 2015. Rob also graduated from the Innovation Academy in University College Dublin in 2015 having studied Innovation, Entrepreneurship & Enterprise. Rob is also a Neuro-Linguistic Programming (NLP) Practitioner having completed his accreditation at the Institute for Health Sciences in Dublin.
For more check Life Choice Solutions out!

Katalatto Guests him to share his coaching skills with our readers!

Close your eyes…… What would it mean to you to have more self-confidence? How would your life change and what would you be able to do if you had more self-confidence? What the hell is self-confidence and who is anyone to write about it and speak from experience about the topic? Am I self-confident? I suppose I am in many realms. Is self-confidence something which others can judge if someone has or does the ‘doer’ of the self-confident act have to feel it internally? I suppose it’s a bit of both. I want to describe a little bit of my own journey with this concept and how it has played out in my own life and what I have learned about it so that someone might be inspired to take some confident actions to improve their own lot.

Self-confidence is defined as ‘‘a feeling of trust in one’s abilities, qualities, and judgment’. The trust part of that definition is what grabbed me. I recall clearly not trusting in my own ability and not even having trust in my ability to gain the ability to be self-confident. Then one day, I said, ‘to hell with this, I am going to try to change something’ and trusted that I could overcome my fear if I stepped outside my comfort zone of relative safety. The truth is, up until that point, I hadn’t really tried all that I could have to see what was possible for me.

I was working for the State ever since I left secondary school. I had received the first-hand experience within the public sector, that the expression of our worth and true capabilities is not truly reflected within that domain. After a few years, I began to get curious about my own potential.  Having not attended third level education, I wanted to apply the horsepower that I knew I had in terms of natural aptitude..The degree I enrolled in was a topic which I had always been curious about; Psychology – a confident expression of my belief in my ability. I wasn’t the greatest academic and have to say that getting my 2:1 mark for my degree was difficult, as I worked full time and struggled to fit everything together.

My self-confidence began to grow as I started to get interested in the world around me and specifically politics and political philosophy. In many of the topics on my degree curriculum, the edges of these topics were touched upon. Unfortunately, because I was studying through correspondence and not actually attending bricks and mortar university, the journey was restricted to online discussion and a part of me craved companionship to discuss my new learnings. I was curious, and with some courage, I began to look around me for others who were on a similar path.

A great challenge for me was overcoming my doubts and fears which required me to lean a lot on my courage. Stepping into the unknown, I trusted that I would find people in my city who were interested in these concepts. With a leap of faith into some online forums, I discovered many like-minded people. We were all exploring the same ideas together. Meeting this group of people in my city, it began to really awaken something inside of me. It wasn’t long before I set up a meeting point and began to run events for people interested in these ideas. Before long, a community began to flourish. It was as if I was circling a purpose, something of value to me, and I knew I had to pursue it. The ideas of liberty, personal responsibility, and human potential were beginning to occupy my mental landscape. I began to read more widely and found a whole political philosophy/ideology called libertarianism which fit my values like a glove. I was confident that I was orbiting the correct ideas and people. All of these new experiences were building my armour. I was becoming aware that I was in control of my own destiny. As long as I was alive and could use my skills and knowledge, I began to see that I could guide my life towards any outcome I designed.

 

From my cloudy goal to leave the public sector, I had stumbled across my most important values in life. I began to take actions in the world which were bringing me the results I wanted. A confident continuation of this effort has led me to run my own life coaching business. I am also a leader of several liberty focused organisations in my region. I believe that self-confidence is something which will feel alien until we get clear on what our values are and set goals that are outside of our comfort zone. Self-confidence requires an acceptance of the potential, that along the road we may fail. Giving ourselves the permission to accept failure and believing that the next time doesn’t have to be the same outcome, is the foundation of what grows our self-confidence and allows us to step into our courage to become the people we all want to be.

People ask, what can I do now to gain my self-confidence and powerfully move towards where I want to be. My answer used to be to do X , Y and then Z. But now I ask people to put their own mind and heart together to find what that is for themselves. Ask yourself what is self-confidence to you and what would you be doing if you had more of it? What I mean by ‘mind and heart’ is that the mind is the place where the thoughts originate from but the heart is what gives flavor to the thoughts. When people can attune their beliefs to be in-line with the outcome that they want to achieve in life, they become unstoppable. For many years, I had a core belief that academic life was not for ‘people like me’. Until I challenged that belief, and eventually changed that belief, I was not permitting myself a level of success that I now enjoy. Mind and heart working together in tandem are what allow someone solve all their problems. Self-knowledge and curiosity for what is alive inside us are great ways to map our current reality and envision the journey to where we want to go. We just have to have the courage to jump.

I recommend that if you wish to improve the circumstances that you begin to get curious about your own beliefs. Trust that you can acquire all that is needed to become the self-confident, able and successful person you want to be. You can become the master of your destiny, as all successful people do, by courageously following through with their goals and taking appropriate actions. Self-confidence is an accumulation of experiences and actions that have become routine to a confident person. This is why both the perception and perceiver of self-confidence is both external and internal. How are you going to work on your internal game and make the external exude with self-confidence? I would love to hear about your own experiences and challenges with self-confidence so please let me know below or write to me at rob@lifechoicesolutions.com.

You may read this post originally shared and much more at lifechoicesolutions.com

Opportunity: Entrepreneurship MasterClass Series 10-25 February

***FOR ENGLISH SCROLL DOWN***

Sahibkarlıq fəaliyyəti şəxsin müstəqil surətdə həyata keçirdiyi, əsas məqsədi əmlak istifadəsindən, əmtəə satışından, işlər görülməsindən və ya xidmətlər göstərilməsindən mənfəət götürülməsi olan fəaliyyətdir.

Sahibkarlıq özündə müxtəlif funksional komponentləri cəmləşdirən əsas etibarilə iqtisadi fəaliyyətdir və sahibkar iqtisadi fəaliyyəti üçün zəruri olan təbii, investisiya və əmək resurslarını bir yerə toplayır.

Sahibkar öz mülkiyyəti və nüfuzu üzrə iqtisadi qərarlar verir, öz üzrinə risklər götürür, iqtisadi inkişafın davamlı xarakter daşıması və əlavə dəyər yaratmaq üzrə səciyyələndirilmiş bütün imkanları əhatə dairəsi üzrə tədbiq edir.

Ən önəmlisi isə, sahibkar təşəbbüskar və yenilikçidir!

“Entrepreneurship MasterClass Series” start up mədəniyyəti, sahibkarlıq və bizneslə əlaqədar praktiki biliklərin təkmilləşdirilməsi məqsədilə praktiki metodlara əsaslanan təlimlər seriyasıdır.

Təlimlər biznesin müxtəlif aspektlərini əhatə edir və öz biznesinizi qurmaqda sizə gərəkli olacaq hüquqi, vergi, audit, marketinq və sair aidiyyatı biliklərin öyrədilməsi xarakteri daşıyır.

Mühazirələr azərbaycanlı və xarici peşəkarlar tərəfindən aparılacaq.

Təlimlər azərbaycan və ingilis dillərində təşkil ediləcəkdir.

Təlimlər 10-25 fevral tarixləri arasında həftədə 2 dəfə 4 saatlıq, ümumilikdə 24 saatlıq mühazirələr şəklində həyata keçiriləcək.

Təlimlərdə iştirak tamamilə sərbəstdir.

Proqramı uğurla yekunlaşdıran iştirakçılar yekunda sertifikatlarla təltif olunacaq.

Yer: Fabrika Coworking Baku

Qeydiyyat mütləqdir: “Entrepreneurship MasterClass Series Application Form

Mühazirələrlə bağlı əlavə məlumat üçün Katalatto facebook səhifəsini izləməyiniz xahiş olunur

Hər hansı sual yaranarsa aşağıdakı e-poçt ünvanlarına müraciət etməyiniz xahiş olunur:

huseyn@katalatto.org
aalizamanli@studentsforliberty.org

******ENGLISH HERE******
The love of liberty is a never-ending story for us, without any compromise and in utterness. Humanity has yet comprehended the prospects that start-up and entrepreneurship offer. It had given a chance to every person to advance the world we live in and to build a state-of-art societal dreamworld starting from the very first foundation of current.

Katalatto aspires to link innovative ideas to present environment. Nevertheless, we do not visualize start-up and entrepreneurship as supernatural breakthroughs that would solely push the world forward. The cultural variance shall have to be taken into consideration if the goal to construct a free society. The fresh voice of current world – young generation shall neither be stoppable by the limits nor the borders. Entrepreneurship is a new form of art that will command the modern world with prioritizing free trade.

Our goal is to assist all forms of ideas in a sense of resources, mentorship, and network notwithstanding their money-making abilities, rather considering their mottos.

ENTREPRENEURSHIP MASTER CLASS is training series for promoting startup culture, entrepreneurship, and business-related practical knowledge. Each training is based on different aspects of business life and will assist to overcome the hurdles of legal tax, audit, marketing, and other related issues during the process of establishing and running a business.

Classes will be kept by Azerbaijani and foreign professionals.

Sessions will be held both in Azerbaijani and English.

Sessions will be organized between 10-25 February dates, twice in a week, 4 hours each day, 24-hours long in total.

Participating in the MasterClass training is completely free of charge.

Those who qualify will be awarded a certificate.

Location: Yer: Fabrika Coworking Baku

Registration is a must: “Entrepreneurship MasterClass Series Application Form

For upcoming news regarding classes please follow Katalatto Facebook Page

If you have any questions, please write to:

huseyn@katalatto.org
aalizamanli@studentsforliberty.org

Katalatto Guides: 4 small things you should do for Your Small Business to prepare for 2018

With the end of yet another great year, it’s time to prepare ourselves and our business for the next.

Small business owners could easily take this time to evaluate their achieves and set the course for following year.

Every small business has slightly different goals for 2018.  While these tips are, they are still very important and they can make all the difference in accomplishing business goals in 2018.

Here are four small things you can do to prepare your small business for the new year.

  1. Organize your books

Make sure you take the time to carefully examine all your financial reports and really take this time to evaluate your progress. If you had trouble getting your books in order then you may make it a goal of yours to keep better track of your finances next year.

One pro tip  we can guide you is that you may want to consider using an online payments solution with invoicing and expense management functionality. That way you can automate your bookkeeping and focus more on growing your business.

Related: Katalatto Guides: 10 invoicing services perfect for small and medium businesses

  1. Reflect with your team

The end of the year should really be a time for reflection. If you’re like most small business owners the majority of your day is spent in your own head grinding on making your business thrive. Often times this results in the owners missing out on valuable feedback and time spent with their staff.

As things wind down for the holidays make sure you take the time to reflect on your team. Setup one on one chats as well as a group discussion to gather feedback. Make sure every single person has a chance to provide input. This will make for a stronger more engaged team in the long run.

  1. Prepare for growth

Growth is typically on the top of the list for every small business owner. However many of them don’t actually take the necessary steps to make that happen. As the year comes to an end this is the time to really set the stage for growth.

Think about where your business is lacking and what efforts produce the biggest return on investment. This also may be the time when you decide to cut a few employees loose. It’s never easy but if you want to be able to move the company forward you need to do what’s necessary.

  1. Upgrade your technology

For better or for worse we’re living in the time of constant innovation. Good news is there’s a ton of new technology every single year that can benefit your business. The bad news is that it means you have to replace your old systems with new ones.

If you have the time you should run a quick check to see if you’re up to speed on the latest technologies available. Here are a few tools you may want to checkout before going into the new year:

  • Slack provides seamless and affordable team communication. I highly recommend this to any startup or team.
  • Dropbox is great for file-sharing and recently released Dropbox papers which provides a Google Drive style collaboration tool.
  • Buffer is great for social media marketing as it lets you schedule posts from your social accounts.
  • Calendar is a fantastic tool for scheduling and managing your time.

Related: Katalatto Asks: What free cybersecurity tools small business owners could use?

Out with the old in with the new. With 2018 here it’s time to check those last few items off the list so you can start the new year with a bang. If your a small business owner make sure to do these four small things before wrapping up the year!

 

Katalatto Guides: 10 invoicing services perfect for small and medium businesses

As an individual entrepreneur or small & medium business owner, you’re well aware of the importance of invoicing: If you don’t invoice clients, then how are you going to get paid? Thankfully, plenty of invoicing options available today allow you to easily send out these all-important communications. But, with so many services available, which one should you choose? Here Katalatto will guide you for 10 invoicing services perfect for freelancers and small and medium business owners alike.

1. Due

Due is is one of the best options. One of its advantages is speed; it quickly generates professional invoices. What’s about this service is that it comes with a billing timer and the ability to export your invoices or estimates as an XML or CSV file. The clean interface also allows you to see which invoices have been sent or paid, and which ones are due. You can further create options for taxes, discounts and language.

Due is 100 percent free for unlimited invoices and unlimited clients. If you would like use payments  it’s a flat 2.8 percent on all invoices paid with a credit card.

2. Sighted

Sighted offers a refreshingly simple easy to use for entrepreneurs and freelancers to send invoices and get paid faster than ever before. Sighted’s team are dedicated ensuring you get paid first time, fast every time you send an invoice. Cash flow kills many small businesses so if you are feeling the pain of needing your cash now give sighted a try. Managing your invoices and finances effectively dramatically increases your chances of getting paid on time and minimizes the risks of not being paid. Sighted flawlessly integrates multiple payment functions, so there is a seamless transition over different payment mediums. If you are currently using word documents, excel of pdf’s to send. In a nutshell, Sighted offers everything you need.

Related: KATALATTO GUIDES: 30 BEST ONLINE TOOLS FOR SMES

3. Freshbooks

There are several reasons why over five million people trust FreshBooks for their invoicing needs. For starters, the platform is incredibly user friendly and easy to use. But, if you do have a problem, FreshBooks has an award-winning support team ready to assist you 24/7. If that weren’t enough, FreshBooks allows you to add your logo to your invoice, initiate repeat billing, calculate taxes, send paper copies and get paid in any currency. You can even see if a client has viewed or paid your invoice in real time. In a nutshell, FreshBooks offers everything you need.
After a 30-day free trial, plans start at $19.95 per month.

4. Zoho

While Zoho Invoice has many features outside of invoicing, such as sales and marketing tools, this simple invoicing software is perfect if you want to create invoices quickly. Besides the well-designed invoices, Zoho also allows you to create automated payment reminders; collaborate with team members, like accountants; and track the time it takes to complete a project. Zoho also integrates with popular payment gateways, such as PayPal, Stripe and Authorize.net, so that you can get paid quickly online.
Zoho is free to use if you have under five customers; paid plans start at $15 per month.

5. Invoicera

What makes Invoicera stand out are the variety of features provided for different-sized businesses, whether they be freelance, small-to-medium-size businesses or enterprise-size busineses. Irregardless of business size, Invoicera offers free invoicing templates that can be converted into PDF files or a different language/currency for global clients.
Another unique Invoicera feature is its availability of detailed invoicing reports. These can be used to forecast revenues in the future, which are handy for creating a budget.
A free plan is available for subscribers with fewer than three clients; pricing starts at $19.95/month.

Related: KATALATTO GUIDES: 4 WAYS SMALL BUSINESSES CAN MASTER MARKETING

6. Harvest

Like other invoicing services, Harvest allows you to quickly create personalized invoices in multiple currencies. Harvest also claims that its service will get you paid twice as fast. Some of its more unique features include the ability to create retainers and to feature the amount due on both the top and bottom of the invoice. There’s also a search feature, similar to PayPal’s, so you can easily locate previous invoices.
Harvest also has a number of add-ons, such as Trello, PayPal, Stripe, Zendeskand Salesforce, so you can give your account a little extra boost.
After a 30-day free trial, pricing starts at $12 per month.

7. Simplybill

As its name implies, Simplybill allows you to create invoices with ease. In fact, the company boasts that it has“been designed to be the easiest online invoicing solution out there.” Besides its simplicity for creating and sending out invoices, Simplybill has around 40 template designs and the option to include tax rates. It also has a great dashboard which allows you to view which payments are overdue, and to see a snapshot of your invoicing history.
You can try Simplybill for 14 days, and plans begin at $5 per month.

8. Hiveage

Hiveage (formerly known as CurdBee) is used by over 45,000 small business in 140 countries. Why? Because not only is the service easy to use but it’s packed with a wide range of features. On top of the customized invoices, you can send clients reminders and convert estimates into invoices. Hiveage also sends you detailed reports and enables you to track your time and expenses and the power to manage multiple users and businesses.
You can use Hiveage for free, but if you require something more robust, plans start at $6.95/month.

Related: KATALATTO GUIDES: 10 FREE EDUCATIONAL PORTALS COULD TOP UP YOUR KNOWLEDGE

9. Wave

Wave provides accounting software for small businesses, which includes invoicing. Like other invoicing software, Wave allows you to produce customized, professional invoices in a snap. Other features include recurring payments, and the ability to see when invoices are viewed, to add messages, to create estimates and to invoice for multiple businesses.

While Wave is loaded with more than enough invoicing features for your business, the fact that’s free is its most appealing feature.

10. MakeSomeTime

If you’re on the go a lot, then you might want to look into Make Some Time. It allows you to easily and quickly create professional invoices from your smartphone, tablet, or computer. On top of the customizable invoices, you can also create estimates and view reports that illustrate how your business is performing.
For under 3 invoices the service is free, if you send out more plans start at $49 per year. Starter plans begin at $9/month.

Katalatto Asks: Why Property Rights are important to unlock trillions in dead capital?

Hernando de Soto is a big name in development economics. His energetic opposition to Peru’s Maoist guerrilla group, the Shining Path, led to three assassination attempts. His big idea is to make sure that the legal system can see as much as the dogs of Bali. While the Indonesian government was trying to formalise property rights, others have tried to abolish them altogether.

Hernando de Soto argues better property rights could make a big difference to the world’s poor on his so-called book “The Mystery of Capital”

About two billion people have full rights to the property they live in and the land they farm. For the 5.3 billion who do not have such rights, the implications are stark: people are unable to leverage their resources to create wealth, and their assets become “dead capital” which cannot be used to generate income or growth. As a result, the poor remain trapped by the “tragedy of the commons” where their unregistered assets can be stolen by powerful interests, hurting individuals and broader economic development according to de Soto.

Daring plan

In 1970s China, for example, where the Maoists weren’t the rebels but the government, the very idea that anyone could own anything was seditious, bourgeois thinking.
Farmers on collective farms were told by Communist Party officials that they didn’t own a thing. Everything belonged to the collective.What about the teeth in my head, asked one farmer? As noted by NPR’s Planet Money podcast, he was told that even his teeth were owned by the collective. The land, its produce – and even the workers’ teeth – belonged to the collective in 1970s China.
This approach worked terribly: if you don’t own anything, why bother to look after it? Avoiding toothache is an incentive to brush your teeth. But collective ownership of land left farmers in desperate, gnawing poverty. So, in Xiaogang in 1978, a group of farmers secretly met and agreed a daring plan.

 

Conspicuous success

Instead of farming as a collective, they would informally divide up the land, and each keep whatever surplus they produced after meeting collective quotas. It was a treasonous agreement in Communist eyes: discovery risked execution.
In fact, they were found out thanks to their conspicuous success: their farms produced more in one year than in the previous five years combined. But luck was on their side.
Deng Xiaoping, who became leader in 1978, laid the foundations for China’s modern economy.
China now had a new leader: Deng Xiaoping. And Deng let it be known that this was the sort of experiment that had his blessing. And 1978 was the beginning of China’s breakneck transformation from utter poverty to, by some measures, the largest economy on the planet.

Invisible web

The experience in China shows that even informal property rights can be incredibly powerful.
If you know your neighbours respect your boundaries, you can feel confident investing time in weeding your vegetable plot, or building a house.
But in one critical way, it doesn’t help me that my neighbours agree that I own my house. If I want a loan – to improve my house, or build a business – lenders need collateral. And land or buildings make particularly good collateral because they tend to increase in value, and it’s hard to hide them from creditors. Banks will lend against property only if its ownership can be proven in law. But the lender needs to be confident it could take the house away from me if I don’t repay the loan. So, I need to prove that the house really is mine. That requires an invisible web of information that the legal system and the banking system can use.
For Hernando de Soto, this invisible web is the difference between my house being an asset – something useful that I own – and being capital – an asset recognised by the financial system.

‘Dead capital’

In poor countries, a lot of assets are informally held. Hernando de Soto calls them “dead capital”, useless for securing a loan. His estimate was that at the start of the 21st Century there was almost $10tn  worth of dead capital across the developing world – more than $4,000  for every person.
Other researchers think that’s an overestimate and the true figure is probably $3tn  or $4tn, but either way, it’s a huge amount. But how do assets become capital? How does the invisible web get woven? It needs a government.

Enforcing property rights is one of the few things pretty much everyone on the political spectrum agrees a government should do, except perhaps the Maoists.
It’s not just an altruistic measure to make it easier to get a mortgage. When government knows who owns land, it can tax it however.

Napoleonic ‘cadastres’

Perhaps the first recognisably modern property registry was in Napoleonic France. Needing to fund his incessant wars, Napoleon decreed that all French properties would be carefully mapped, and their ownership registered. Napoleon decreed that all properties in the territories he controlled would be mapped and registered Such a property map is called a “cadastre”, and Napoleon proudly proclaimed that “a good cadastre of the parcels will be the complement of my civil code”. After conquering Switzerland, the Netherlands and Belgium, Napoleon introduced cadastral maps there, as well.

Bold pioneers

In the mid-1800s, the idea of the land registry spread quickly through the British Empire, too. The government drew up maps and allocated title deeds. Of course at that time, nobody with any power had much interest in the fact that indigenous people had their own claims on the land.
The process doesn’t have to be top-down. In the United States, there was a bottom-up approach. After decades of treating squatters as criminals, the state began to think of them as bold pioneers.
The 1862 Homestead Act set out the rules on who could own land in the US’s western territories.
The US government tried to formalise informal property claims, using the Preemption Act of 1841 and the Homestead Act of 1862. Again, the rights of the native people who had been living there for thousands of years were not regarded as of much significance.
It was hardly justice. But it was profitable. By turning a land-grab into a legally recognised property right, these land registries unlocked decades of investment and improvement.

And some economists – most prominently Hernando de Soto himself – argue that a good way to create property registers for developing countries today is to use the same bottom-up process of recognising informal squatters’ rights, coupled with modern databases.
Do improved property registers really unlock what Hernando de Soto calls “dead capital”?
Evidently, they can. In Ghana, for example, farmers with clearer property rights invested more in their land.

Essential infrastructure

But the answer, of course, is “it depends”. It depends on whether there’s a banking system capable of lending, and an economy worth borrowing money to invest in. The Philippines’ labyrinthine property registration system involves 168 steps. And it depends on how smoothly the property register works. Hernando de Soto found that in the Philippines, legally registering property took 168 procedures, 53 agencies and a waiting list of 13 to 25 years. Faced with such obstacles, even formally registered properties are likely to become informal again – the next time the property is traded, both the buyer and the seller may decide that formalising the deal is just too time consuming.
But get it right, and the results can be impressive.
Providing the world’s poor with titles for their land, homes and unregistered businesses would unlock $9.3 trillion in assets, de Soto estimates, an unprecedented sum to reduce poverty.

The World Bank has found that after controlling for income and economic growth, the countries with simpler, quicker property registries also had less corruption, less grey-market activity, more credit and more private investment.

 

 

Katalatto Guides: 4 Ways Small Businesses Can Master Marketing

Most of the people who stuck their daily office routine are willing to start off their own business. The goal is simply long-dreaming, to turn a passion into a career.

However, it is neither simple or easy to manage the business successfully. It takes a leap of faith to open a new business, and it takes business savvy to keep it open.

One of the first hurdles a small business owner faces is getting the word out about her new business. Or, if the business is established, growing the business and attracting new customers. At the heart of driving sales is marketing. For business owners without marketing experience, this can seem overwhelming. Katalatto will explore common challenges of small business owners face and will Guide you how to solve it.

  1. Define your unique value proposition (UVP)

The first step in marketing a business effectively is understanding your capabilities and the white space your business is filling in your industry.

Inevitably, you will face competition, so take the time to outline what sets you apart from your competitors. Become as informed as possible on your industry. Sign up for industry newsletters; read relevant trade publications; and consider participating in industry events. This will allow you to identify trends, and stay up-to-date with important news. It will also help you identify your competitors. Take a close look at what they are doing and how they present themselves to potential customers.

Then determine who your target customers are and what they want. This is important – one of the biggest small business marketing pitfalls is to assume you know your customer without doing research.

Clearly identify the service you are providing and the problem you are solving for your target customers. This will help you define your UVP – the unique benefit you are providing for your customers.

You’re not trying to sell to everyone, which is a good thing. Your goal is to clearly define who you are targeting, why they want your product and how best to reach them. Once you know that, your job is to consistently execute your marketing plan.

 

  1. Maximize your online presence.

Armed with a clear understanding of your business and its industry, it’s time to market it to potential customers.

While there are many marketing channels to consider, typically the most efficient and cost-effective are online.

Take time to audit your online presence. An easy place to start is your website. Make sure the website design is consistent with your brand and that the site is easy for customers to navigate, and find the information they’re looking for.

If it’s appropriate for your business, make it easy for customers to sign up for a mailing list. This will enable you to build a database of customers, who give you permission to reach out to them regularly with product updates, interesting news or coupons.

In addition to listing your products or services, consider adding a blog to your website to provide tips and product or service updates to customers.

Beyond your own website, be sure to build your presence on and spend time managing review sites, like Yelp and Angie’s List. These help validate your business and can boost sales. You can even share good customer reviews on your website.

Whether you’re communicating via your website, a blog, an email, a third party review site or social media, be sure to keep a consistent voice. Every customer touchpoint is an opportunity to build your brand.

  1. Get into conversation

Social media channels are a low-cost way to get the word out about your business and build relationships with your target audience.

Choose a channel, which your customers are already on. Facebook, Instagram and LinkedIn serve very different purposes, so be smart in your choices, and think about the kind of content you like to post. Using platforms specific to your business makes it easy for customers to find and interact with your business online.

When it comes to posting on social media, consistency is key.

Create a schedule to ensure you are posting regularly so your audience knows to expect content. For example, plan for three posts a week, which you can draft in advance.

In order to keep content dynamic, take a three-prong approach:

  • Talk about yourself and your business,
  • Talk about your customers,
  • And talk about your industry.

Share updates about what’s happening at your business, such as a new shipment you’ve received or a peek behind the scenes. Be sure to thank your customers, and engage them through questions.

Ultimately, share interesting news articles, and invite your social media followers to share their thoughts. In all social media posts, make sure you’re authentic and realistic so your audience can connect with you.

 

  1. Use paid content.

The paid aspects of social media can also be a great way to boost your business’ profile, and get in front of new customers.

For instance, you can target the exact type of customer you are looking to attract with advertising through Facebook and LinkedIn campaigns, based on the information individuals have shared on their profiles.

If you have the ability to incorporate this tailored approach into your budget and cash flow, it is an option worth exploring to supplement your free social media efforts. Sometimes a small campaign can make a big difference.

Regardless of size, every business owner can use the tools available to market their business successfully. Small business owners can be marketing guru, even without a marketing background, by developing a keen awareness of their industry landscape, building out their social media presence and developing their brand identity.