Times are Changing

At the current pace of our changing world we find ourselves neither settling nor moving forward at the pace we think we should be moving at. The rate of change is astounding and no sooner have we built a strategy than we discover that it is already lagging the changing digital world. So where does that leave us as we build small businesses to cater for the future?

Fortunately, the current administration has a great respect for small business and they are taking steps to grow the economy at the core. Small business. With the international business environment changing so quickly and the trend towards partial isolationist policies, the USA markets are becoming more and more attractive to international companies, yet they will conceivably become harder to penetrate and develop. Why would the local markets appear attractive to international companies? Simple, they need access to the high per-capita transactions that translate into daily volume and value transactions. In addition, the Asian and European markets have become attractive to the USA businesses mainly due to volume and compounded growth rates.

eCommerce has opened the world to markets unattainable 5 years ago. Today the markets are appearing to conform with the ‘flat earth’ concept, the markets that were once part of our dreams have now being visible for all to see. The ‘hard to get’ business is no longer around the corner. It is simply down the street. The secret is to build a supply chain that is ready for this move. Many companies say they are ready. Really, 6 months ago did you ever think the company tax rate would be 21%. Hard to imagine. IFC Financial Group and our International sister Consulting group, IBLR International would love to talk to you about your international expansion. Give us a call or drop us a line.

International Growth

Ever wondered why some companies grow so rapidly? Ever compared yourself to a competitor and felt rather disillusioned. Well, it happens like that in a fast and changing world. However, it does not have to be like that. It can be different. Strategy is most important, but decisiveness runs right next to it. Effective communication, the need to change and understand your customers needs, while not always thinking of the monetary rewards. It is possible to build relationship before becoming profitable. Understanding is the most important. Customers like to understand who they are working with and suppliers need to know who they are gearing to partner with. The communication we used last year, might not be enough to see us through next year. We need to get our story received and accepted by those we service. Let IFC Financial Group or our sister company IBLR International help you build for the new year. We are ready to hear what you have to say.

General Solicitation -Title II- Where to now?

General Solicitation -Title II- Where to now?

On April 5th, 2012 President Obama signed into law The Jumpstart Our Business Startups Act, known as the JOBS Act, which for the first time in 80 years relaxed the investment securities offering rules, enacted during the Great Depression. Or did it fail to relax these rules? The first glance looks very exciting. However taking a deeper view of the new Title II rules might change the public’s perspective.
Much debate is going around deciding if the rules have actually been truly relaxed. The rules certainly have changed, but there is no consensus agreement that these new rules constitute a relaxation to the old rules. Let’s examine one aspect of the change.

In a Regulation D offering Rule 506(b), it is currently required that the issuer ensures no general solicitation i.e. it is a “non-public” offering or in other words, the general public need to be shielded from the financial investment in question. Knowledge of this investment needs to be spread privately among accredited investors i.e. people earning >$200,000 pa or >$300,000 pa when taken jointly OR an investor who has a self-worth of >$1, 0 million dollars excluding their primary residence. (There are other criteria which we won’t touch on now). The onus to prove these criteria belongs to the investors, not the issuer. In addition the owner can admit 35 non accredited but educated investors (making allowance for a family and close friend investing opportunity). These rules for this regulation still exist today when no advertising is undertaken. However, we all know that the chances of getting a larger range of investors come when we cast a wider net. Enter the new JOBS Act. [Read more…]