Записи с меткой «fairy»

I am dreaming of a tropical Christmas

Being a predominantly Christian country Christmas is a big occasion in the Philippines. It is also still a religious occasion, which of course it should be. Only a tiny percentage of people can afford gifts, so the emphasis is on family holidays, time together, and for many going to church. Very few families have anything special for Christmas lunch they just don’t have the money. They do make up for it, though, as Filipinos certainly know how to enjoy themselves.

Despite the lack of money in most families, Christmas starts early in the stores, around August. One thing they go in for in a big way here is Christmas lights. Sometimes even the poorest homes will be adorned with fairy lights, some having quite spectacular displays. Even in early November last year, as I travelled back from the jungle’s edge about 90km south, it was quite magical to see the Christmas lights as we got near the city.

My first Christmas in the country was memorable. I was invited to a girlfriend’s house Christmas Eve, a very poor but very friendly neighbourhood with mostly small timber houses cramped next to each other intimate to say the least. Outside in the garden there were lights everywhere, set up for the party that would last all evening and into the night. I remember sitting there as they got everything organised around me, how magical and special it all was. Just a few months earlier I had been a resident in England and had only experienced Christmas in England. Now, I was sitting outside on a hot Christmas Eve, the sound of tropical insects a prelude to the modern disco music that was to follow later. I loved it.

As with most occasions in the Philippines, there were lots of children. Neighbours came and went, people moved from one party to another, and there was a constant flow of people and especially children. Children’s games were followed later by adult versions of children’s games, most of which have come from Western influence, but Filipinos always put their own stamp on the foreign habits they adopt. Alcohol would not have been a part of the occasion, but the adults were delighted when I offered to buy beer and rum.

At midnight, I was advised to go inside. I soon saw why. All hell broke loose with fireworks as midnight approached, exploding from every tightly packed, confined little garden in the neighbourhood. Fireworks that would have been banned in the UK, but I have to admit they were very loud and impressive. I was amazed, as nobody had warned me of this tradition beforehand.

Now, all my Christmases are tropical, and very different from those in England. I sometimes wonder how much Christmas would change here if it ever became a wealthy country. The major differences between here and England are the profligate spending and materialism in England, and the normal subdued spending in the Philippines. Yet, it is the Filipinos who seem more able to enjoy it that the English.

While the body of the business plan should be 15 to 25 pages, the Appendix can be used for supplemental information. The Appendix should include a full set of financial projections, and as appropriate, technical and or operational drawings, partnership and or customer agreements, expanded competitor reviews, and lists of key customers among others.

If the Appendix is long, a divider should be used to separate it from the body of the plan, or a separate Appendix document should be prepared. These techniques ensure that the investor is not handed a thick business plan, which will make them queasy before even opening it up.

To summarize, the goal of the business plan is to create interest not to have an investor write you a check. In creating interest, the full story of your company need not be told. Rather, the plan should include the essential elements regarding why an investor should invest and spend more time examining the business opportunity. The shorter length does not mean that your business plan should take less time to prepare. Rather, it will take more time. As Mark Twain once said, If I had more time, I would write a shorter story. Likewise, condensing your business plan to a concise, compelling document is challenging and time consuming. Fortunately the rewards are significant.
When raising capital for a business venture, a company can either raise debt capital, equity capital or a combination of the two. Debt capital is money loaned to the company at an agreed interest rate for a fixed time period. Conversely, equity capital is money invested by owners shareholders for use in business operations that need not be repaid. Combinations include convertible securities which may be debt that can be converted into equity at some point in the future.

The simplest form of equity capital is common stock. Common stock has many distinguishing factors as follows:

Common stock is not convertible into another type of security
Each share enjoys one vote
Dividends are payable without limit but only when declared by the board of directors
In liquidation, common stock holders are the last priority to which to distribute assets

In venture capital transactions, there may be two types of common stock which are issued. The first is Class A common stock, which is like preferred stock without the special voting rights which some statutes require in shares labeled preferred. A second type of common stock is junior common stock. While this type of stock is not used very frequently, it allows companies to get cheap stock into the hands of key employees at minimal tax cost.

Determining what type of capital to raise and how to structure the financing transaction is of critical importance to growing ventures. As such, it is crucial to understand the key terms and consult the appropriate legal and business advisors when embarking on the capital raising process.