The idea of selling mattresses online has remained largely ignored for decades, which is not really surprising. If you think about it, shipping these bulky and huge beddings seem like a ridiculous idea with how unwieldy they are. It’s not like you can just squish them into a box, ship them off and be done with it. Traditionally, to get mattresses delivered, you’ll need to have burly guys carry these ridiculously huge beddings up to your bedroom and get them positioned to your bed.


But recently, with the innovative genius of some internet-based startup companies, the idea of stuffing mattresses into a box is not so ridiculous anymore. With the help of a compressor machine, king-sized mattresses can be condensed and flattened like a pancake, rolled, and stuffed into a box no bigger than a three-drawer file cabinet. When consumers open the box, air starts seeping into the mattress and starts inflating it. This innovative breakthrough has catapulted the online mattress industry to the spotlight and has allowed numerous online companies to spring up.


Nowadays, the idea of trying mattresses first and checking their rigidity and durability is not as important as it did before. Surely, years ago no one would even consider buying something that costs around $1000 if they haven’t even tried it. But with the advent of online reviews and social media, consumers are more than content on reading numerous reviews, (i.e. review of Intellibeds) and product specs online and trusting them.  Reading articles regarding the best Tempurpedic mattress and the like works just as well.


This revolution provides humongous opportunities not only to traditional companies involved in the mattress industry but also to compressor machine manufacturers and investors. Over a year ago, Target, a multi-million corporation involved in the operation of several merchandise stores invested $75 million in the bedding startup, Casper. Because of the significant increase Target earned in their digital sales, many investors are spurred to do the same.


The bedding industry is undoubtedly more lucrative than it was years prior, however, before you start investing in a bedding startup, you need to consider several things first in order to get as much revenue as you can out of the deal. First off, you should consider the brand visibility of the startup you’re planning on investing in. Casper is an extremely popular brand with a wide following among millennials. With Caspers wide fan base, Target can use these numbers to augment their product offerings and attract more people to their own platform and ramp up their sales.


Another thing that you should consider is the company’s quality of service, product, and what they can bring to the market to make them stand out among competitors. Though the online mattress industry is booming right now, that’s not to say it’ll remain like that forever, that’s why it’s highly important to know if the company you’re investing in has a means of standing out among the crowd to continue gaining immense popularity among customers. Lastly, before investing you ought to consider what you want to get out of the investment as well as your long-term plans. For other investments, visit http://avalaresources.com/.

Want to Invest in Energy Stocks Choose the Best from the List of Energy Stocks

One of the fastest growing and best sectors to invest now is the energy industry sector, given the continuity of the list of energy stocks available for investment is gaining popularity among investors.

With the number of people who want to invest in energy stocks growing, it is helpful to know why investing in the energy sector should become a part of your investments to optimize the potential of gaining from these investment opportunities.

Is the Energy Sector One of the Best Sectors to Invest In Now

Is the Energy Sector One of the Best Sectors to Invest In Now?

Many investors have mixed feelings on energy sector investments, given that it can be one of the best sectors to invest in now in one country but not to another. In that sense, investing in the energy sector may be context dependent, so beginners must acquire a list of energy stocks first and select which ones are performing well in their area.

Doing this can help an investor buy the best stock in the market which offers them promising performance and consequently, investment returns. For starters, there are several strategies which stock market entrepreneurs employ to help them make the most out of each stock they will buy.

Tips on Investing in the Energy Sector

Many people who want to explore business opportunities, but don’t have enough capital for it, often begin by investing in the stock market.

With the plethora of private stocks and global companies in the market, it may get confusing how to start investing in the energy sector or how to choose which from the list of energy stocks can give them the best returns. Several strategies you can follow if you want to invest in energy stocks include:

1. Check the current supply and demand status of both traditional and renewable energy sectors which you learned in Economics.
2. Look at their performance through time with high fidelity.
3. Check if the funds of other investors have been seasoned, and their money, returned with high growth rates.
4. Compare how your prospect company is performing with the other ones from the same sector.

These tips can help you get the most out of your investment and begin growing your money based on the performance of the company you have chosen in the energy sector.

As you invest in energy stocks, keep in mind you should look for reasons why it is a good idea to invest in energy stocks and how it can impact your finances. Doing so can ensure a successful investment return which you may enjoy in the future.

Want to Invest in Energy Stocks Choose the Best from the List of Energy Stocks

Want to Invest in Energy Stocks? Choose the Best from the List of Energy Stocks

It may get confusing to determine where to start if you want to invest in energy stocks. As a final tip, you should begin by looking at the list of energy stocks available in your area and get an overview on how they fared in previous years. As you do so, you should formulate plans and employ effective techniques to help you get the most out of your investment.

Many entrepreneurs experience business birthing pains before or during the operation of their business startups, especially when they have small business capitals or limited sources of capital for business to start with.

For an entrepreneur facing this kind of situation, getting private funding or grants from investors can be one of the best options men and women in business can go for. As long as an entrepreneur can connect with the right network, private funding for entrepreneurs will be easy, especially that venture capital can be one of the key factors to a successful business.

As business owners go for this option, payment schemes may vary from one financing company to another, so it is best that should you consider issuing bonds, you should know the advantages and disadvantages of issuing bonds beforehand.

advantages and disadvantages of issuing bonds

What are the Sources of Capital for Business?

Running a startup venture can be challenging, especially if sources of capital for business startups become limited. Some of the sources of capital for businesses include:

  1. Equity
  2. Revenue
  3. Grants
  4. Debt

These sources of capital for business can become key factors to a successful business. All of these sources are equally important, and one of the most recommended and sound alternatives may be opting for private funding for entrepreneurs.

Getting Private Funding for Entrepreneurs

Looking for private funding for entrepreneurs can be necessary when they have already exhausted all options but still find it difficult to raise enough venture capital. Some of the ways you can utilize private funding for entrepreneurs include:

  1. Crowdsourcing through business startup networks.
  2. Finding an angel investor through angel networks.
  3. Joining business incubators or catalysts.
  4. Private Equity of Financing Institutions.
  5. Borrowing Money from Friends and Family or from your Closest Social Networks.

You can easily access each of these types of private funding for entrepreneurs, but as much as possible, borrowing money from friends and family should be your last option to avoid domestic or personal conflicts arising from it.

key factors to a successful business

Advantages and Disadvantages of Issuing Bonds for Private Equity Institutions

Since most business startups boost capital from private financing bodies, then issuing bonds can become necessary to increase your venture funding. Several advantages and disadvantages of issuing bonds may be encountered by a borrower, but these pros and cons may be worth it if you just know how to strategize in using this alternative.

The biggest advantage of issuing bonds is you retain ownership of your business while selling some of your assets. Private funding can also promise you big returns, high loanable amounts and incentives, however, private funding also has a downside.

Disadvantages include the probability of losing control over the company and losing management rights. You may also face the risk of losing eligibility. However, all of these disadvantages can be avoided if you just know how to use your funds properly.

Key Factors to a Successful Business

Business capital is only one of the key factors to make your business successful, and it is not necessary to perform well in this area (although it is ideal) as long as you can cope with your performance in other aspects of the business.

Effective business management, administration, and marketing is sure to help you compensate for your funding problems. To avoid having capital funding problems in the first place, always appropriate your assets strategically and plan.

Why is Mining Important to Daily Life

The mining industry is considered as one of the fastest growing economies all over the world but in particular, the contribution of mining to the country, especially those who export mineral products, are felt intensively.

There are some economic benefits of mining which befalls a country, thereby placing emphasis on the economic significance of mining and their impact on both the government and the people. In contrast, many people have now raised the question why is mining important to daily life, given that the impact of this industry is felt less by countries who rely on imported goods.

The Economic Significance of Mining

The Economic Significance of Mining

Most people underestimate the importance of the role of this sector in global economies, but little do they know national governments of countries who export minerals rely heavily on this industry to boost their economic performance.

As a matter of fact, many developing African countries are dependent on the exploration and the exploitation of their mineral resources such as coal, gold, ore, iron, and many other mineral sectors which are deemed to open many opportunities for many economies.

So the importance of this sector is highlighted with the economic significance of mining, especially since the economic benefits of mining are apparent.

Economic Benefits of Mining

Similarly, the economic benefits of mining also highlight the economic significance of mining, given that both concepts are subsequent consequences of each other.

With the economic significance of this sector affected by the economic benefits of mining, an economist always considers which significant decisions of the sector can positively impact the economy and highlight the industry’s importance, hence the need for learning what the economic benefits of mining are. Some of these benefits include:

1. Providing livelihood to local communities.
2. Generating income for the local government thereby directly contributing to its economy.
3. Promoting a more efficient use of energy, saving people money.
4. Promoting environmental awareness through rehabilitation programs resulting to more renewable sources than ever.

With these benefits being apparent, the contribution of this sector to the economy is sure to be significant.

Contribution of Mining to the Economy

The contribution of the mining sector to the economic situation of a country is more significant than most people think. The role of this sector in everyday life is to provide essential materials to help facilitate the assembly of new ones (such as in mobile phones), making it necessary for a country to practice safe mining to keep the other industries going.

This is the reason why mining is important to daily life, because, without this sector, many industries will be crippled, especially the manufacturing industry.

Why is Mining Important to Daily Life

Why is Mining Important to Daily Life

The economic importance of this industry has been underestimated by many, but it has been proven that mining plays a crucial economic role to keep the economy going and for a country to experience growth.

The facts mentioned earlier all highlight the impacts of this sector on a country’s wealth, and it is important to take note what these are for you to understand better why it is necessary for everyday life.

Corporate finance

Posted by Sam on May 5, 2017
Category: Finance

Jack Welch an American retired business executive, author, and chemical engineer. He was chairman and CEO of General Electric between 1981 and 2001. During his tenure at GE, the company’s value rose 4,000%.

Corporate finance deals with the sources of funding and the capital structure of corporations, the actions that managers take to increase the value of the firm to the shareholders, and the tools and analysis used to allocate financial resources. Although it is in principle different from managerial finance which studies the financial management of all firms, rather than corporations alone, the main concepts in the study of corporate finance are applicable to the financial problems of all kinds of firms. Corporate finance generally involves balancing risk and profitability, while attempting to maximize an entity’s assets, net incoming cash flow and the value of its stock, and generically entails three primary areas of capital resource allocation. In the first, “capital budgeting”, management must choose which “projects” (if any) to undertake. The discipline of capital budgeting may employ standard business valuation techniques or even extend to real options valuation; see Financial modeling. The second, “sources of capital” relates to how these investments are to be funded: investment capital can be provided through different sources, such as by shareholders, in the form of equity (privately or via an initial public offering), creditors, often in the form of bonds, and the firm’s operations (cash flow). Short-term funding or working capital is mostly provided by banks extending a line of credit. The balance between these elements forms the company’s capital structure. The third, “the dividend policy”, requires management to determine whether any unappropriated profit (excess cash) is to be retained for future investment / operational requirements, or instead to be distributed to shareholders, and if so, in what form. Short term financial management is often termed “working capital management”, and relates to cash-, inventory- and debtors management.

Corporate finance also includes within its scope business valuation, stock investing, or investment management. An investment is an acquisition of an asset in the hope that it will maintain or increase its value over time that will in hope give back a higher rate of return when it comes to disbursing dividends. In investment management – in choosing a portfolio – one has to use financial analysis to determine what, how much and when to invest. To do this, a company must:

  • Identify relevant objectives and constraints: institution or individual goals, time horizon, risk aversion and tax considerations;
  • Identify the appropriate strategy: active versus passive hedging strategy
  • Measure the portfolio performance

James Harris Simons American mathematician, hedge fund manager, and philanthropist. He is known as a quantitative investor and in 1982 founded Renaissance Technologies, a private hedge fund based in New York City.

Financial management overlaps with the financial function of the accounting profession. However, financial accounting is the reporting of historical financial information, while financial management is concerned with the allocation of capital resources to increase a firm’s value to the shareholders and increase their rate of return on the investments.

Financial risk management, an element of corporate finance, is the practice of creating and protecting economic value in a firm by using financial instruments to manage exposure to risk, particularly credit risk and market risk. (Other risk types include foreign exchange, shape, volatility, sector, liquidity, inflation risks, etc.) It focuses on when and how to hedge using financial instruments; in this sense it overlaps with financial engineering. Similar to general risk management, financial risk management requires identifying its sources, measuring it (see: Risk measure: Well known risk measures), and formulating plans to address these, and can be qualitative and quantitative. In the banking sector worldwide, the Basel Accords are generally adopted by internationally active banks for tracking, reporting and exposing operational, credit and market risks.

Financial services

 Financial services

An entity whose income exceeds its expenditure can lend or invest the excess income to help that excess income produce more income in the future. Though on the other hand, an entity whose income is less than its expenditure can raise capital by borrowing or selling equity claims, decreasing its expenses, or increasing its income. The lender can find a borrower—a financial intermediary such as a bank—or buy notes or bonds (corporate bonds, government bonds, or mutual bonds) in the bond market. The lender receives interest, the borrower pays a higher interest than the lender receives, and the financial intermediary earns the difference for arranging the loan.

A bank aggregates the activities of many borrowers and lenders. A bank accepts deposits from lenders, on which it pays interest. The bank then lends these deposits to borrowers. Banks allow borrowers and lenders, of different sizes, to coordinate their activity.

Finance is used by individuals (personal finance), by governments (public finance), by businesses (corporate finance) and by a wide variety of other organizations such as schools and non-profit organizations. In general, the goals of each of the above activities are achieved through the use of appropriate financial instruments and methodologies, with consideration to their institutional setting.

Finance is one of the most important aspects of business management and includes analysis related to the use and acquisition of funds for the enterprise.

In corporate finance, a company’s capital structure is the total mix of financing methods it uses to raise funds. One method is debt financing, which includes bank loans and bond sales. Another method is equity financing – the sale of stock by a company to investors, the original shareholders (they own a portion of the business) of a share. Ownership of a share gives the shareholder certain contractual rights and powers, which typically include the right to receive declared dividends and to vote the proxy on important matters (e.g., board elections). The owners of both bonds (either government bonds or corporate bonds) and stock (whether its preferred stock or common stock), may be institutional investors – financial institutions such as investment banks and pension funds  or private individuals, called private investors or retail investors.


Areas of Finance

Posted by Sam on May 5, 2017
Category: Finance

Personal finance

Questions in personal finance revolve around:

  • Protection against unforeseen personal events, as well as events in the wider economies
  • Transference of family wealth across generations (bequests and inheritance)
  • Effects of tax policies (tax subsidies or penalties) on management of personal finances
  • Effects of credit on individual financial standing
  • Development of a savings plan or financing for large purchases (auto, education, home)
  • Planning a secure financial future in an environment of economic instability

Warren Buffett is an American investor, business magnate, and philanthropist. He is considered by some to be one of the most successful investors in the world.

Personal finance may involve paying for education, financing durable goods such as real estate and cars, buying insurance, e.g. health and property insurance, investing and saving for retirement.

Personal finance may also involve paying for a loan, or debt obligations. The six key areas of personal financial planning, as suggested by the Financial Planning Standards Board, are:

  1. Financial position: is concerned with understanding the personal resources available by examining net worth and household cash flow. Net worth is a person’s balance sheet, calculated by adding up all assets under that person’s control, minus all liabilities of the household, at one point in time. Household cash flow totals up all the expected sources of income within a year, minus all expected expenses within the same year. From this analysis, the financial planner can determine to what degree and in what time the personal goals can be accomplished.
  2. Adequate protection: the analysis of how to protect a household from unforeseen risks. These risks can be divided into the following: liability, property, death, disability, health and long term care. Some of these risks may be self-insurable, while most will require the purchase of an insurance contract. Determining how much insurance to get, at the most cost effective terms requires knowledge of the market for personal insurance. Business owners, professionals, athletes and entertainers require specialized insurance professionals to adequately protect themselves. Since insurance also enjoys some tax benefits, utilizing insurance investment products may be a critical piece of the overall investment planning.
  3. Tax planning: typically the income tax is the single largest expense in a household. Managing taxes is not a question of if you will pay taxes, but when and how much. Government gives many incentives in the form of tax deductions and credits, which can be used to reduce the lifetime tax burden. Most modern governments use a progressive tax. Typically, as one’s income grows, a higher marginal rate of tax must be paid. Understanding how to take advantage of the myriad tax breaks when planning one’s personal finances can make a significant impact in which it can later save you money in the long term.
  4. Investment and accumulation goals: planning how to accumulate enough money – for large purchases and life events – is what most people consider to be financial planning. Major reasons to accumulate assets include, purchasing a house or car, starting a business, paying for education expenses, and saving for retirement. Achieving these goals requires projecting what they will cost, and when you need to withdraw funds that will be necessary to be able to achieve these goals. A major risk to the household in achieving their accumulation goal is the rate of price increases over time, or inflation. Using net present value calculators, the financial planner will suggest a combination of asset earmarking and regular savings to be invested in a variety of investments. In order to overcome the rate of inflation, the investment portfolio has to get a higher rate of return, which typically will subject the portfolio to a number of risks. Managing these portfolio risks is most often accomplished using asset allocation, which seeks to diversify investment risk and opportunity. This asset allocation will prescribe a percentage allocation to be invested in stocks (either preferred stock or common stock), bonds (for example mutual bonds or government bonds, or corporate bonds), cash and alternative investments. The allocation should also take into consideration the personal risk profile of every investor, since risk attitudes vary from person to person.
  5. Retirement planning is the process of understanding how much it costs to live at retirement, and coming up with a plan to distribute assets to meet any income shortfall. Methods for retirement plan include taking advantage of government allowed structures to manage tax liability including: individual (IRA) structures, or employer sponsored retirement plans.
  6. Estate planning involves planning for the disposition of one’s assets after death. Typically, there is a tax due to the state or federal government at one’s death. Avoiding these taxes means that more of one’s assets will be distributed to one’s heirs. One can leave one’s assets to family, friends or charitable groups.