The Fed’s $4.5 Trillion Balance Sheet Says A Correction is Looming

The Central Bank must unwind their balance sheet of $4.5 trillion carefully or the markets will start become destabilized. The choices to unwind the trade is by selling the bonds or just allowing them “run off”, which means they do not reinvest the proceeds of the bonds. The equities markets has been propped up by the Fed’s use of multiple quantitative easing and that has created a major decoupling between the companies fundamentals from their stock prices. the fed stock market.png
 
By propping up the market with money and large cash reserves in companies due to not lending to the average person, simultaneously done with historically low-interest rates, The Fed made most other investments so low yielding that it directly impacted investors decisions to invest in the stock market running that up to all time highs. We have a federally mandated bubble due to the stock market being the only area to find suitable yields and any substantial capital appreciation.  By propping up the market I’m referring to The Fed printing trillions of dollars of free money that has artificially inflated the market to all-time highs. Companies were cash rich and the average person couldn’t find any other place to invest. 
 
Now, they must unwind because if they continue down this course of low rates there is a greater probability of high inflation also a bubble forming in both the already lofty prices in real estate and the high hidden valuation of the stock market. I understand to do this correctly they must raise rates at a moderate pace but also be very transparent since any substantial abrupt and unseen decrease in the balance sheet may startle both the markets and investors for a while. 
 
The Fed may want to use a staggered like approach when proceeding with interest-rate raises also providing investors enough of a sign and openness to what they’re planning to do, so there is no panic. If done correctly, this should produce a soft landing. Regarding this way, it gives The Fed complete control and enough adaptability that should change in the US or World economy, they could respond promptly. For instance, if any unforeseen changes happen during Brexit, there is a slowdown in corporate earnings, inflation changes, or instability due to geopolitical events. 
The flip side is if The Fed moves too quickly it could send a major shock and destabilize the markets and panic investors. Lowering growth, soaring bond yields, higher borrowing costs, and economic stagnation. Also, the dollar could become very weak, retirement accounts may go down due to a volatile market, and inflation could rise also hurting the average American. It comes down to how The Fed thinks the trade should be unwound and I hope they do so like in 1994 instead of 1937. Either way, I believe we are in for a large correction.
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Posted in Analyst Opinions | Tagged , , ,

Visa & Immigration Business Plan Writing Price List

All E1, E2, EB-5, L1, H1-B Visa Business Plan Writing Services are priced as follows.

Delivered in 14 days = $799.00
Delivered in 7 days = $899.00
Delivered in 4 days = $999.00
Delivered in 3 days = $1,099.00
Delivered in 24-48 hours = call or email.

Our professional consultants have the years of legal and business experience to help your clients develop the best business plan according to the United States Government Immigration laws.  Contact us today. Learn more about the immigration and visa business plans we custom write for clients.

Posted in Business Plans | Tagged , ,

How To Plug Facebook Into Your Business Plan

Within in every professional business plan, is a professional marketing plan. This standard section of a business plan outlines how you will Market your product to potential customers or clients and how you will Market the company as a whole to investors, employees, stakeholders and of course customers and clients. In today’s technology era, to ignore Facebook would be a huge mistake. Granted not all businesses will benefit from marketing their product or service through Facebook, but most can, will and should.
Before we discuss how to plug Facebook into your business plan, let’s take a look at the many features of Facebook.
There are many types of functionalities on Facebook. It is not as simple as just opening up an account and begin posting. After you open up a personal account, you may want to open start a Facebook Page for your business or brand. This is where you will run all your interactions for your business. Several sections and aspects of Facebook that we will review include:
  • Facebook groups,
  • Facebook pages,
  • Facebook pay-per-click ads,
  • Facebook events,
  • Facebook social influencer marketing,
  • Automating Your Facebook Page,
Let’s start with Facebook groups. After you create a personal profile on Facebook, there are groups that you can join. These groups can be Regional or buy Sector or Niche. For example, there are groups for Connecticut residents or groups for Texas single mothers or groups for coin collecting clubs. You should try to join a group that you think will enhance the prospects of your business. For example, if you are a website designer or provide a service that entrepreneurs could use, you should join all the entrepreneurial groups. Remember that some of these groups are worldwide so you will have members from all parts of the world. You will be able to post in these groups like you post on your profile page. Starting communications in these groups is a good way to get your product or service in front of the right people.  Picture below is a screenshot of some Facebook groups where I am a member, notice the focus on numismatics & currency groups is to promote a business I operate selling coins at nickynice.com
facebook pages business plan
Facebook Pages. Facebook also allows you to set up a page for your business, brand, nonprofit and even for a location. This in essence acts as a web page which can be found on or off Facebook. Having a Facebook page for your business is important, since currently Facebook only allows you to run sponsored post through a Facebook business page.  When you set up a Facebook page it also allows you to use Facebook as an e-commerce site, allowing you to sell products or services right from Facebook, to others visiting your Facebook page. The post you publish on your Facebook page can be shared to your profile page or other Facebook groups. This allows you to generate traffic to your Facebook page or your Facebook ecommerce store.  Facebook also allows you to advertise your Facebook page to gain more followers and likes. This is important to capturing the crowd that visits your Facebook page so you can re-advertise to them again later.  Pictured below is a picture of the Facebook page for Cervitude Intelligent Relations.  notice that Facebook allows a custom url so our url is Facebook.com/Cervitude
facebook page business plan.JPG
Pay-per-click ads & Boosted Posts. On Facebook, you can buy traffic to your website, by visitors that will call your phone number, Target people with a certain job title or interest, target people by region and more. Pay-per-click ads on Facebook also allow you to boost a post. By boosting a post you can increase the number of how many people see the post and this can also be targeted by geography, interest, age and other targeting features that Facebook has available.  You can drive traffic to a shared link on Facebook or off of Facebook and they even allow you to drive traffic to videos. The main strength in Facebook advertising is the targeting. They go as far as allowing an advertiser to target individuals whom they know have visited a certain website or target specific individuals by uploading an email list and only showing the ad to those people.  Pictured below is what you will see when you try to boost a post.  Notice the warning sign.  If Facebook thinks your ad will not be approved, it will let you know before you try.  Ads with pictures that have writing in them, generally do not get approved.  Notice also that you can start running ads for as little as $1 and 1 day.  This is great for startups and great for testing. 
Facebook post business plan
Facebook Events & Calendar.  Facebook events allows you to set up an event and invite friends and other people to the event. It allows you to sell tickets in advance and allows you to put together an RSVP list of people attending, not attending and maybe attending.  It will also send out reminders and allows a user to run advertisements for events.  This is particularly good for accounts whom already have their user base on Facebook or can target geographically.  You can set up an event for your business grand opening, a sale your business is having or the launch of a new product.  Of course you can also market a party, picnic, dinner, wedding or any social function.
Facebook Social Influencer Marketing.  Well this isn’t really a Facebook feature but it can help businesses scale the social media platform.  If you never heard the term “social influencer”, it simply means that a person of has a larger following and can influence the decision-making power of others.  Examples include athletes, movie stars and now….social media celebrities with blogs or vlogs.  The line between models and social media influencers for example is getting blurred with beautiful people posting great photos and gaining an audience.  Once the audience is built, advertiser contact them directly for promotion on social media.  This is social influencer marketing.  On Facebook, if you are looking for a social media influencer, simply find one in your region or niche and reach out.  Better yet, the lesser known influencers, ie those with followings between 10k-200k, are generally a better value for the money.
Automating Your Page. There are plenty of tools for automating all of your social media and Facebook is not exception.  Facebook allows you to schedule post but this may be better done via third party applications.  HootSuite offers automation of postings so you can preset the social media postings and focus on engagement (where hootsuite also helps).  When you are growing a business, automation can be your best friend.

So How Do We Plug Facebook Into You Business Plan?

Ok, now that we have gone through the meat and bones there isn’t much left except insert this into your business plan.  The common mistake I see, having developed hundreds of business plans and read a few hundred more, is that people simply make a bullet point statement of Facebook marketing in their business plan.  Then when it is time to take action, they don’t know where to start.  Explain to the reader in your business plan exactly how you will use Facebook to get in touch with your customer and stay in touch with your customer.  Simply stating that you will utilize Facebook may not be enough for your marketing plan.  Granted, space, page count and time considerations should be noted when developing a business plan; so do keep this in mind.
Hope this was helpful,
Need a business plan?  Help with Facebook marketing?  Want to put together a marketing plan that will grow your business and attract more revenue?  Cervitude IR is a full service business consulting firm helping entrepreneurs and businesses grow.  Contact us today.
Posted in Business Plans, Social Media Marketing | Tagged , , , ,

Same Day S.E.C. Form Filing Services 

Same Day S.E.C. Form Filing Services

The old saying “money never sleeps” may be true, but the Securities and Exchange Commission does. We mean that they do take days off and private companies and public companies looking to file forms with the Securities and Exchange Commission have to do so during business hours.

We offer same-day SEC form filing services.  Documents that need to be submitted to the Securities and Exchange Commission need to go through the Edgar database. This is the database owned by the Securities and Exchange Commission we’re all forms and reports are filed. At times, a company will need to have a reference number in order to file with the SEC. This reference number, given by the SEC, is only good for the same day as the filing. This means that anyone filing forms must do so in an expedited process on the same business day as the reference number is given. For this reason, many filings with the SEC must be done on the same business day in which a company receives a reference number.

Also, many forms and documents that need to be filed on the Edgar database with the Securities and Exchange Commission need to be put in a format that is accepted by the Edgar database. This is true of many of the financial projections which come in XBLR, HTML format or XML. These documents need to be edgarized in order to be accepted by the Edgar database.

Our process for filing forms, documents and reports with the Securities and Exchange Commission’s Edgar database is simple, efficient and professional. Documents, reports and forms received before 12 noon eastern time can generally be submitted on the same business day. Exceptions can be made in certain circumstances for filings needed after 12 noon eastern time. Once we receive the form to be filed with the Securities and Exchange Commission, we proofread the form and then edgarize the form to make sure it is accepted by the SEC. Then we submit the form through the Edgar database and send our clients proof of submission.

If you are in need to file a form with the Securities and Exchange Commission, contact us todaySEC Form Filing Service.

Posted in Filing S.E.C. Forms | Tagged , , ,

Uplisting Your Public Company

Being a public company is an achievement in itself. The smaller public company should always be in the pursuit of growth. While building a sustainable business, many smaller public companies uplist to a larger exchange to take advantage of more market makers, hedge funds, broker dealers, and other players that normally do not participate in the smaller public markets or OTC markets. By uplisting your company from a smaller exchange to a larger exchange, the business gains credibility and it allows the executive management team to close bigger deals.

If you are currently trading on the OTC markets or a smaller stock Exchange and are seeking to be listed on the Nasdaq or the New York Stock Exchange or the London Stock Exchange, we can help.  We make the process of uplisting your company seamless. Our network a broker dealers, mezzanine financing, growth funds, stock transfer agents, legal professionals and market makers allow us to help smaller public companies gain access to larger investor pools on larger stock exchanges; in an efficient manner.

The financial regulations associated with up listing a company to a major stock exchange can be cumbersome to any business. Executives and management teams should be focused on growing the revenues of their business and not on the day today activities that are necessary when up listing a public company.  Our team ushers smaller public companies to major stock exchanges taking care of filing forms, communicating with stock exchanges, communicating with the SEC, communicating with Finra, and all other aspects of uplisting a public company.

Are you ready to set the road map to a major stock exchange? Contact our team to begin discussions about how we can help you or your client uplist their public company to a major stock exchange.

uplisting your public company

 

 

Posted in Investor Relations, Micro Cap Investor Relations, Penny Stock Investor Relations, Reverse Mergers, Small Cap Investor Relations | Tagged , , ,

Building a Business That A Fool Can Run

If someone else can’t run your business, then how will you ever take a vacation? When you are looking to sell your business or find an investor, people interested will be looking to see how well the business will run after the current management is long gone. They are looking for the staying power of the business. How well is it managed and if the resources in place for it to continue to make a profit and pay out a dividend. Or at least increase it’s market cap value.
Businesses that a fool can run.
Management should always be focused I’m building a business that can scale. This means the business can grow profitably. In order for the business to grow profitably it will need to have many people involved. These people will replace the jobs originally done by the founder or the founding management. At scale. This means the organization will go from one member doing everything to a small team, to eventually a large organization with different functions teams such as an accounting department, a marketing department, a finance department, a sales department, etc. It is the founders job to make sure that these separate work areas are communicated effectively to the original management team. And it is that’s management teams duty to effectively communicate the job functions to the new departments as the company grows.
Business planning will help a company sustainably grow it’s business. If the company is a start-up, a solid business plan should delineate a business model. The business model is simply a repeatable set of steps that leads to the sale of a product or service.  As the business model is proven, via execution, the business plan will show how to scale the business model. A working live business plan for internal purposes helps teams grow and execute their business models. This entails daily revisions of the business plan and business model based on data the company has obtained through executing their business plan.
Regardless of the details, make sure you build your business so that a monkey can do the work. This will allow a founder or executive to be able to work on the business instead of work in the business. This will allow for growth. It will allow the business to operate for hundreds of years regardless of who is in charge of the day-to-day management.
Running a business is not easy, it’s the job of the current management to make it easier for the next management team. If you cannot step away from your business, if someone else can not run your business for you, you will never be able to reap the rewards of owning a business that pays you. Instead you will be a Slave to the business.
-Nicholas Coriano
Building a Business A Fool Can Run
Posted in Dealmakers | Tagged ,

Why Robo Trading Doesn’t Make The Cut & Today’s Market Sentiment

I see robo’s getting bigger, but fizzling out. Yes, I am sure they can pick stocks based on fundamentals or technical points, but miss on having any type of out of the box thinking or being savvy, knowledge in the intricacies of the financial markets, they won’t be able to build the necessary relationships, they don’t have the experience, ability to use his experience to see market 3 or 6 months out. They are not creative or innovative all of which robots do not have. A lot of advisory work is behavioral and our job is to cool you down when you get too over excited or keep you together when you are too worried about your portfolios when we hit a bubble or a correction, respectfully. They won’t be able to build a portfolio like Ackman or Buffett anytime soon.

The market is definitely rip roaring, but that is because of the Federal Reserve sort of losing the reigns of the market all together. The amount of fiddling with the market since ’08 has been unprecedented and they do not have a clue how to unwind that trade. If you take a look, a real look at Main Street. You will see everything is not all sunshine and rainbows. A lot of people are working two or more jobs to make ends meet and the government is making it sound like the economy is doing very well when it is not for the average American. Unfortunately, the market will continue to rise and the bubble will get bigger and bigger while the average American will be hit with higher inflation which will put more pressure on them and discretionary spending will decrease. The market will pull back and the people who are feeling good about their portfolios at this moment will start to become very concerned and may pull out of the market due to fear of 2008. Americans who were in their late 40s and early 50s during 2008 are much closer to retirement and the flashback back to when they saw their portfolio lose 40%. The Federal Reserve is out of bullets to stop any type of serious market correction. It is a very dangerous time in the financial markets and lack of cohesion inside the Fed and the government is going to be a problem down the line. A lot of people do not want to admit that the markets are overvalued as a whole and even more so when you look at individual equities even as earnings are giving the impression that they are strong. Institutional investors will take profits instead of moving to the bond market like the Fed and even rational thought that investors would likely do as they raised rates. Normal everyday investors are not taught about financial markets enough to know not to panic when there is a correction and they are close to retirement age since they will not get the “bail out” that previous generation received.

For RIA’s, they are going independent because the advisors are getting higher fees and they have more room to do what they want to do. Meaning they are able to use different products that aren’t approved at certain big wire houses. Not everything is uniformed at let’s say Morgan Stanley and Merrill Lynch. Bank of America has made it harder for some of the bigger names in the mutual fund space to bring over their whole product line and that sometimes means that clients at ML are missing out on some of the mutual fund companies best products and vice versa. RIAs who are independent do not have the same complicated compliance restrictions on certain funds and they are able to rebuild some products that are “proprietary” to certain big wire houses that is cheaper and more beneficial to the client. However, it is in my opinion it comes down to making more money for the advisor at an independent shop since the wire houses take most of the fees that the advisors make from their clients.

-Dan Wachtel

Posted in Dealmakers | Tagged , ,

Filing Form 211 with FINRA

Form 211 allows a company to initiate of resume quotations on an exchange.  The form is filed with FINRA and is about 7 pages long.  As stated by FINRA:

Complete this form to initiate or resume quotations in a quotation medium, as defined in Rule 15c211(e)(i) under the Securities Exchange Act of 1934 (1934 Act) including, but not limited to, the OTC Bulletin BoardTM or OTC Link® ATS. By completing this form, your firm is representing that it has satisfied all applicable requirements of Rule 15c2-11 and the filing and information requirements of FINRA Rule 6432. It is not necessary to file this application if a member qualifies for an exception or exemption provided by paragraphs (f)(1)-(5) or (h) of Rule 15c2-11.

This form is also used to initiate and resume quotations on OTC Markets and other stock exchanges in the USA.  Filing Form 211 is a step in the IPO Process and sometimes used by companies that where once on the public markets and are looking to be re-quoted on an exchange.  You can find FINRA Form 211 here.  Need help filing Form 211 with FINRA?  Our consultants can guide you through the process and explain how it works.  Contact us today.

Posted in Filing S.E.C. Forms, Investor Relations, S.E.C. Regulations, Securities Definitions | Tagged , , , , ,

Pre IPO Business Plan

Going public is an event.  A very time-consuming and difficult event….but well worth it when done correctly.  Accessing the public markets can be a windfall for the company and pre-IPO investors as well as other parties involved.  The road to going public, or an IPO as is it often called, is mixed with different parties that help transact the deal.  Included in these parties are investor relations agents, attorneys, accountants, broker dealers and more.  A pre-IPO business plan not only showcases all the parties necessary for an IPO but acts as a road map for the company to understand the steps need for a successful IPO.

The IPO business plan is very similar to regular business plans except that it showcases to potential investors how they may exit their investment after the IPO.  It all outlines all the costs of the IPO to the management team so they can make an informed decision about where to list, what broker dealers to contract, which attorneys would be a good fit and other elements of the Initial Public Offering route.

Somethings to keep in mind when developing a Pre IPO Business Plan include:

  • When are you planning the IPO?  The timeline for an initial public offering is important and should there should be a timeline in your business plan to make sure all team members of the company understand when and what will take place in the coming months.
  • Where are you planning to list the company?  A pre IPO business plan will layout options and give details about where the company is planning to list.  Companies can list on multiple exchanges and a solid business plan will allow the company to understand the ramifications of each exchange.  Common exchanges in the United States include NYSE, NASDAQ, OTC Markets, etc.
  • What type of securities will you be issuing in the IPO?  The business plan should outline which type of security the company will be listing for sale to the public.  Common shares?  Preferred shares?  Bonds?
  • Will there be a firm commitment underwriter?  Or a best efforts underwriter?  Going public means you need a market maker, someone to create a marketplace for your stock when it trades on an exchange.  Upon the filing of an S1 registration statement with the S.E.C., the party going public should state in their business plan whether or not they have a firm commitment underwriter (one who buys the stock upfront) or one who will try to sell the stock after they have gone public.

These are just a few questions to ask yourself and the company before going public.  A solid business plan allows these questions to be answered in a systematic fashion to assure that nothing is left to chance when proceeding with an IPO.  The business plan also allows the company to forecast financials and business projects to prospective investors.  After the business plan is complete, much of the data makes its way into the S1 registration statement for filing with the S.E.C.

Do you need a pre IPO business plan for you company or client?  Contact us today.

We also offer several other business plan types for your specific needs.  If you are in need of a business plan writing service, offered by professionals, Cervitude Business Planning is the one-stop shop for all your business plan needs.  Contact us today.

Posted in Business Plans, Investor Relations, ipo | Tagged , , , , ,

Getting Started with Cervitude IR

Many visitors to our website or potential clients we meet at conferences commonly ask, how do we get started?  It is actually simple.

Give us a call to discuss your project.  Regardless of whether your company needs investor relations services, special consultants to guide you through an IPO or just a simple business plan; we are here to help.  The initial consultations are free until you are ready to move forward with an actual retainer agreement.

After our first consultation, we will follow-up with a proposed timeline for you project.  If you need a business plan, the time line is generally between 7-14 business days.  Investor Relations campaigns can go as long as one year or be as short as a week; depending on the need of the client.  Each proposal and retainer agreement is customized to the prospective clients needs.

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Once you have agreed to a timeline, simply execute the contract, remit payment according to contract terms, and we begin consulting on your project.  The fastest way to understand the process is to contact us today.

Posted in Business Plans, Investor Relations | Tagged ,