Eric Dalius talks about Key Elements of Business Finance Every Business Leader Must Know

Business finance is theraising, allocating, and managing funds companies need to conduct their business operations. These corporate enterprises can get the money they need from many different sources. These includeissuing equity shares, applying forcommercial loans, availing merchant cash advances,crowdfunding, andinvoice factoring.

Eric Dalius – business finance and how to manage them

According toEric Dalius finance is the lifeblood of companies. All the other critical areas of their businesses are dependent on a steady and constant cash flow. These are sales, marketing, human resources, logistics, customer relations, purchases, inventory procurement, production, and supply chain operations. Business finance’s primary goal is to apportion money into these areas to maximize the companies’ wealth.

Business finance comprises the following three critical areas:

1. Corporate finance

Corporate finance deals with properly planning, managing, and controlling funds companies have at their disposal. It includes cash flow management, in-depth analysis of financial statements, devising dividend policy, cash and capital budgeting. In small companies, the owners handle the financial operations of their businesses themselves. They monitor costs, expenses, income, and transactions with trading partners.

In the case of large public-trading companies, the Board of Directors approves all financial transactions. They scrutinize all the financial statements their accounting departments prepare according to the relevant statutory guidelines. The board members even assess the companies’ performance using various liquidity and solvency metrics.

2. Investments

Investments involve the companies making important decisions on which assets they use to invest to gain maximum returns.Corporate enterprises can choose to buy many different liquid assets in the financial markets. These generally include equity securities, bonds, derivatives, mutual funds, commodities, short-term U.S Treasury notes, and exchange-traded funds. Their objective is toearn enough after-tax dividends and interest to supplement their cash reserves.

To make sound investment decisions, companies need to havea sound knowledge of how financial markets work. They get to know when to buy these liquid assets and sell them at the right prices. Only then can they expect to maximize their returns. Moreover, the companies should be able to adapt to the pricefluctuations in the financial markets.

3. Financial risk Assessment

Risk assessment is the process of identifying, analyzing, and minimizingthe possible financial risks companies face. These hazards can arise when they prepare to make new investments or transact business dealings. It reveals how well these corporate enterprises’ finances canadapt tosudden changes in the market. These situationscan arise due to natural calamities, stiff competition from rivals, frauds,or changes in statutory requirements.

Companies should have enough funds to maintain a steady cash flow during seasonal downtimes and clear their liabilities. If the need arises, these corporate enterprises should convert liquid assets into cash to boost their finances.Otherwise, they could end up having a serious liquidity problem.

Companies need to ensure their business finances are to conduct their commercial activities smoothly. This can help them maintain a steady cash flow to pay off their liabilities and make investments. Corporate enterprises will also be better positioned to deal with sudden changes in their market environment with success.

Eric Dalius says Make Communication a Top Priority in Business

When it comes to working environments, communication often slips to the bottom of the priority list. True business leaders never shy away from the conversation, no matter how difficult they might get. There are times when the bitter truth should come out. This might come from a client or a customer, or an employee. If there is a problem, it should be heard. One should never jump to conclusions. It is here that patient listening is required so that the perception of the situation changes and the right action steps can be embraced.

Eric Dalius says move fast towards solutions

As per Eric Dalius, the major goal of any difficult conversation at the workplace should be a positive resolution. There are many times when your perception as a business owner changes with the newly acquired information.

The need for you to listen concerning the opinions of others

When it comes to conversations at the workplace, they sometimes can be frustrating and confusing. This is why some companies have innovative techniques to manage these conversations better. It is hard for you to determine what a person likes or dislikes, so sheets depicting their personality traits often help. For instance, someone in the office might not like long-winded conversations. Again, another person might not mind speaking a little extra.

The goal here is to listen and ask questions. Do not let judgments and opinions rule your conscience. You should treat the other individual with respect and move towards a healthy resolution.

Communication also includes non-verbal cues and body language

In the workplace, all your business communication will not be verbal. There are non-verbal cues that you should take note of. There have been several studies on the above subject, and it has been seen that around 65 to 95 percent of any message is accepted and received in a non-verbal form. This means if you are frowning about something that has happened at home when you arrive at work, your employees will misinterpret your facial expression to be displeased. They will assume you are not happy with the performance or annoyed with them. You should be very mindful of what you feel and pay attention to body language. In this way, you can establish a healthy and positive rapport at the workplace.

He sums up by saying that candid feedback should be encouraged at the workplace. Be prepared to listen to the truth, as this often can help in the organization’s further development and growth. There is a common belief that all brilliant ideas tend to come from the top. However, this is not always true. Business leaders should have the time to listen to employees, which should be a systematic process. Employees feel valued, and they know their opinions matter in the organization. This will ensure everyone is heard as they need an equal opportunity to speak. If the communication is well-structured and encouraged regularly, problems will be mitigated early, and the business will prosper.

Eric Dalius says Your Business Budget Is Your Roadmap to Success!

There is a basic rule for all businesses – before you earn profits, you need to know how to spend it first. This is where creating a budget is indispensable when it comes to transforming your dreams into a reality. With this tool, you can track the cash you have in hand, your business’s expenses, and the amount of revenue you need to keep your business afloat to grow in the market subsequently.

Your budget is a vital business tool – Eric Dalius

Eric Dalius is an esteemed business specialist who says that you are placing these numbers on paper when you create a budget for your business.  The chances of business success improve as you can anticipate future requirements, profits, expenses, and cash flow. Moreover, you can detect issues before they escalate into a significant financial crisis, which helps you change your action steps.

The budget takes you in the right direction

He says that your budget is like the roadmap for your business. You need this roadmap to understand where your business is heading. If you do not have the discipline to create a business budget, you will never gain insight into how it performs annually. You will have no idea where to make cost cuts to improve performance or whether you require funds to buy new equipment, for instance, machinery, computers, or even something bigger like a new factory. He adds that it is like being in a car without a GPS or map. You assume that you are going in the right direction, but in reality, you are not!

The reasons why your business needs a budget

The bottom line here is to know why business leaders in charge of a company must create a business? First of all, it will help you know how much cash you have, the amount of cash you should spend, and how much funds you need to generate to meet your business goals. Again, there are other reasons as well. Bankers and financiers often need to see your budget when you submit a loan application.

The budget matters to your employees as well

Your business budget also matters to your employees as they have the right to know where your business is heading. This will motivate them to work harder. He says that it is foolish for business owners not to share the details of the budget with employees as they should know the company’s goals. Overall, this goal is the team goal. You should expect your employees to be aware of the company’s goals if they are not told about them.

Last but not least, budgets help you to minimize financial risks. There are no threats of you overspending and falling into debts. You have a clear picture of how much you have and how much you need to keep your business running successfully. The budget gives you a protective cover and will never make you slip and fall into deep debts.

Tips from Eric Dalius on what to Do When Your Team Members Are Not Performing Well

Being a business owner means you will be dealing with a team full of diverse abilities and personalities. Even if you are the sole proprietor of a business, you need to regularly work with contractors and freelancers. Irrespective of the kind of business leader you are, if there is a weak link, they can cause many bottlenecks and hinder productivity. Even worse, it can injure morale as lazy employees often bring down the business’s productivity and growth.

Eric Dalius – tackle the situation before it gets worse in the organization

Eric Dalius feels that if you are a business leader with employees who are not performing up to their potential, there are ways for you to tackle the situation. He says you should address the above situation at the earliest.

You must ensure there is no problem from your end when you are assigning projects. Make sure you-

  1. Be aware of your workload. Before you assign tasks, ensure you check with everyone to ensure they are available or their work schedules.
  2. Ser specific and clear expectations. To mitigate confusion, communicate what you want. Check whether they are informed of the action items beforehand.
  3. Eradicate potential obstacles- Enquire if anything is stopping them from completing their tasks. For instance, they might be using outdated software, so ensure they are up to date to face no problems.
  4. Divide larger tasks into smaller ones- If you break down large assignments into smaller tasks, you can assist those who often struggle with procrastination. Smaller tasks ensure a larger sense of urgency and can move ahead on time.
  5. Issue reasonable deadlines with priorities set- When you are issuing deadlines, ensure they are realistic. You should be aware of what elements to concentrate on first.

Never judge your employees too quickly or jump to conclusions

It would help if you went down to the root of the problem. You should never judge too fast. Being proactive is the key. Check whether they are being lazy or are incompetent. They might have genuine reasons that are stopping them from completing their work. Once you get to the root of the problem, you are effectively able to set priorities straight.

Share some of their workloads, if required

Never complain if you need to share some part of their workload. However, never let them interfere with your work productivity. You should be responsible for your workload and not anybody else’s.

As a business leader, you cannot control the behavior of other people. However, you can choose how you respond to them. However, be open and prepare to offer help. You can begin by helping others with less important tasks. Rotate responsibilities. You can give new roles to your team members. This gives you the chance to pursue passions and interests in the organization. In case they fail to succeed, they get the golden opportunity to learn their mistakes along with the way.

Eric Dalius explains why the trend of companies going green is fast catching up

When taking any big business decision, the focus is always on revenue or return on investment (ROI). How the decision is going to impact the bottom line is topmost on the minds of business leaders, entrepreneurs, and business owners. It includes decisions about implementing some eco-friendly initiatives that can benefit businesses in more ways than one. Since the clamor is growing about taking steps in all walks of our lives to reduce the adverse environmental impact from human activities, businesses too have started implementing various environment-friendly measures. Interestingly, when businesses take some eco-friendly decisions, it focuses not only on what good it does for the environment but also on how it will have a favorable impact on ROI, explains Eric Dalius,a successful marketer who has mentored many entrepreneurs ventures.

As most businesses accept that climate change is a problem, many businesses feel that it is their responsibility to do something to reduce the problems.  Businesses that focus on eco-friendly initiatives make changes to their work processes that improve the workspace environment and are beneficial for employees’ health. In addition, it prioritizes the good that will happen to the environment by making it more conducive for healthy living.  As a result, several businesses are attempting to reduce the environmental problems by taking up projects revolving around climate change, sustainability, and other environmental concerns.

Implementing green initiatives is a challenge for businesses

When organizations want to play a role in the green movement, it provides opportunities to employees, volunteers, contractors, and other members to influence the green movement. The challenge is to work out the correct approach of involving these people – onesthat include communicating, convincing, teaching, supporting, enabling, and encouraging participation in the process.  Since people take time to accept any change, mandating change does not work in most cases.  Organizations can implement the change successfully only by engaging the people involved in the process by encouraging them to participate in it, believes Eric J Dalius.

Know your current position

Before implementing any new plan that positively affects the environment, which normally people call a green plan, assess your company’s current performance and ascertain how you are spending money on various projects. You can conduct an environmental audit to assess the current impact of your activities on the environment. It will help you make the best adjustments possible when implementing your green plan.

Consider the results of the green initiatives

It is never advisable to act emotionally when deciding about implementing some green initiatives for your business.It can become a fruitless exercise just for the sake of showing your concern about the environment. Take a decision by considering the short and long term benefits of your initiatives. You should be able to find a few benefits both for your organization as well as the environment.  The need for results is paramount because any faux pas can be detrimental to your business and dampen your spirit about doing something good for the environment. It is important to understand the issues that your business faces from an environmental perspective and then consider the projects to undertake that help the sustainability efforts while being beneficial for the business.

When undertaking eco-friendly projects, it is easier to see the environmental benefits and the business benefits. Although the latter might not be visible, it is equally important.

Economic benefits

 When companies decide to go green, it entails some investment in the projects aiming to improve the environment. But considering the returns, it is worth bearing the upfront costs. While the direct impact of the green initiatives is visible in various areas that constitute the short-term gains, the long-term gains for businesses come from the cost savings generated because of implementing the projects. Since fossil fuels are under the most stress, most companies undertake various projects related to renewable energy use. Companies take measures in reducing energy consumption that not only helps in the conservation of natural fuel sources but also reduces the energy bills that save cost.

Rainwater harvesting is one of the green projects that some companies undertake. The arrangement consists of collecting and preserving rainwater to permanently reducing the run-off of stormwater and supplementing the water supply.  It lowers the need to draw water from natural sources or paying for the municipal water supply that saves cost.  

Brand recognition

Companies that go green are keeping up with the current trends as it demonstrates how socially responsible the companies are. Companies use the opportunity to showcase their responsibility for people, which helps build better brand recognition by staying away from the crowd.  By focusing on the green initiatives, businesses can create an image that projects it as a business that cares for the community. It generates better consumer engagement, which reflects favorably in the business results.

The relationship developed with consumers by using the plank of green initiatives is priceless for public relations.  According to The Green Business Bureau reports, an increased number of consumers are eager to do business with companies that care for the environment, which in turn augurs well for humanity. Companies that prove their credentials with green initiatives gain an edge in competition as they acquire a special status in the eyes of consumers who are ready to go along with these companies.

Employee satisfaction

Although it is not possible to assess the tangible gains of many green initiatives by quantifying them, surveys clearly point out the overall satisfaction it generates among the employees. Employees are generally happy with the company and their jobs as they feel that good things are happening to them.  Employees derive the satisfaction of contributing to the environmental cause by being a member of the team that works for environmental improvements.  Earning a green company’s reputation will put your organization in a different bracket than the companies that are not engaging in green activities. This will work favorably to establish your brand on a higher pedestal and attract more customers.

Claiming that yours is a green company is not enough unless you can prove what you are doing by showing results.

Eric Dalius points out some financial mistakes to avoid in 2021

Doing better with finances is one of the most popular resolves for the New Year, as with each passing year, we become wiser about making better use of money. With Covid19 leaving the economy in tatters in 2020, it has been a year bereft of stellar performance on the financial front for most people. But it is natural to hold high hopes for 2021 by considering the lessons learned from the pandemic that has changed the ways we save and invest, confirms Eric Dalius.

The pandemic has taught us to face uncertainty with more courage and adapt to our frequently changing financial situation that changes almost every month. The biggest lesson learned is toprepare to face anything. Even if you have not made any major mistakes with your finances in the past year, the time has come to make an adjustment to suit the new normal, believes Eric J Dalius.  It is important to learn from our experiences of handling finances in the year of the pandemic so that going forward; we can incorporate the learning in the strategies to avoid problems.

Here are some financial strategies that can help avoid mistakes in 2021.

Follow a budget

Although it is a very basic concept in personal finance management, we often overlook creating a budget and following it religiously. Sometimes we feel that it is too time consuming and boring. Budgeting is not at all difficult, but the challenge is to discipline your mind and train it to follow the budget. By reference to the budget before spending, you will know your financial capabilities and take risks accordingly, if required. Budgets are like road signs that drive you towards your financial goals. Ignoring the budget will leave you rudderless, and you can fall into debt traps that can make your life miserable. Adhering to a budget will help to generate a surplus while maintaining a balance in your spending.

Make judicious purchasing decisions

The economic uncertainty that surrounded us during the pandemic has taught us how important it is to protect our money and think carefully before spending on anything, no matter how insignificant it might be. Many times, we are guilty of spending at will without considering if it is at all necessary. This puts a strain on our finances, which you must avoid ensuring that you can hold on to the money as long as you can. For example, if you find a tiny hole in your favorite dress, you might think of going for a new one immediately. However, it will be better to stitch up the hole unless it becomes an eyesore so that you can use the dress for some more time without anyone finding fault with it.

Keep deferring purchases as much as possible by looking at appropriate alternatives so that they can help to meet your purpose.

Make proper use of your emergency savings

The purpose of Emergency savings is self-explanatory, and you must not tap into it unless you find yourself in an emergency.   Ideally, having savings equivalent to your living expenses for six months should constitute the corpus meant for emergencies like unforeseen medical expenses or some unplanned educational expenses for children. The fund will help you meet the expenses without racking up debts. Practice some discipline to avoid the temptation of using the money for any other purpose like a vacation or attending a wedding.

Learn to tackle your disappointments of not being able to spend liberally from the emergency fund. Rather, protect it with the thought that you will only spend the money only when there is a dire necessity.

Do not pay unnecessary account fees

You can use your credit cards that offer a lot of conveniences but always calculate the cost of maintaining the cards, which should never outweigh the benefits.  Yes, use credit cards that do not require paying any fee. Despite all the benefits that you accrue from the credit cards, like earning miles, baggage check, and a companion certificate, it can be costly to pay a considerable amount every year for maintaining the card. All the fees of various cards can add up to a considerable amount that eats into the benefits you avail from the credit cards. Consider the benefits that you are likely to avail because many benefits might not suit your lifestyle. Weigh the benefits with the cost of maintaining the card, which, if higher, it will be better to downgrade the card for a free card with fewer benefits that are more relevant to you.  It will save you some good money.

Take a buy and hold approach for your investments

 Handle your investments with care by avoiding panic when you see your gains vanish in thin air overnight, as it happened in March 2020 in the wake of the Covid19 pandemic.  During that time, most people took to panic selling their investments, which later seemed very irrational because the decision was taken in the heat of the moment. Invest with the philosophy of taking the highs and lows in your stride and remain unperturbed by the sudden shocks by knowing that it is only a passing phase. Take a wait and watch approach by holding on to your investments even during the hard times. It will help you maximize the gains at the opportune moment. The more you hold on to your investments more are the more growth opportunities.

Shop with a purpose

Long home stays during quarantine while complying with the government and public health advisories to fight the COVID-19 pandemic have been stressful and boring. Many people took to online shopping as a means of spending time, which they also found entertaining.  In the process, they drained their money by indulging in mindless buying, as became evident from a sharp increase in online buying that went up as much by 30% during the early days of the pandemic.

Suppress your urge to buy and add the items to your wish list instead of putting them in the shopping cart. This will help you spend some time staying engaged while planning your purchase without spending money.

Eric Dalius lists the most exciting trends to watch out for in the pharma industry

Technology has always played a critical role in shaping the landscape of the global pharmaceutical industries.  The year just gone by has witnessed a massive overhaul by using the technological advantages for introducing more efficient and cheaper manufacturing techniques. According to Eric Dalius, it is paving the way for a new world order governed by the user- conscious drugs of the future. With artificial intelligence (AI), big data, and a profound understanding of the human body, the Pharma industry is moving towards the path of creating a mutually beneficial relationship with modern technology in a way that had never happened before.

The emerging trends witnessed in the pharma sector that will shape the future will become clear ongoing through this article.

Spreading the biosimilar markets far and wide

Biosimilars have been an enigma for the pharma sector. From the beginning, the pharmaceutical regulatory agencies have been accustomed to handling tricky situations arising from biosimilars, especially concerning the procedural standards and legalities.  The complexities grow much more when you consider the incessant demand for pharmaceuticals coupled with the demand for more accessible and cheaper drugs. The signs of the exponential growth of biosimilar markets in the coming years are evident.

South American countries have established their own R&D with a focus on producing patent-expired biologic drugs on a commercial scale and are ahead in the competition.  As 66 US drug patents are going to expire in the next five years, it is reasonable to forecast that the FDA will be reviewing more biosimilar applications. It will result in higher growth in the biosimilar segment, feels Eric J Dalius.

Utilizing AI and big data for predictive/preventive measures

On looking at the pharma manufacturing landscape, it will be hard not to notice that real-time responsive drugs are still in the nascent stage of evolution. However, manufacturers have already taken the cue and started exploring their predictive quality techniques.  The International Society for Pharmaceutical Engineering or ISPE and its members have taken up the mission of implementing the Pharma 4.0 model and preparing a road map for it. It will help in better bonding of the medical universe, create new transparency levels for a digitalized plant floor, and speed up the process.  It will speed up decision-making and provide in-time and in-line control over operations, business, and quality.

Using artificial intelligence (AI) and robotics technology will soon be possible to cut down manufacturing floor downtime and minimize product waste. There are signs of single-use disposable solutions gaining momentum that is likely to replace open transfer manufacturing techniques, thereby ensuring safer drug storage and transport.

Precision medicine

Personalized medicine, also known as precision medicine, consists of the process of diagnosing and administering tailor made treatment and medicines by considering an individual’s predicted response. Although such medicine is still within a niche segment in the Pharma sector, there are clear signs of precision medicines slowly but steadily gaining traction as more and more such medicines clear the clinical stage and show signs of emerging in the new-age market. The momentum that precision medicine is gaining is evident from the doubling of investment in personalized medicines over the past five years. Experts project a 33% increase in production by 2025.

M&A (Mergers and Acquisitions)

Mergers and acquisitions in the Pharma Sector had maintained their impressive pace throughout 2019 despite a slowdown in other industries across the globe.  The Pharma sector’s highly competitive environment is many compelling companies to re-jig their growth plans and elevate their position through consolidation. The stage is ready for the bigger players targeting mid-sized and small companies for acquisition that will give them access to the smaller companies’ innovative capabilities and catapult their business to greater heights.

Besides achieving growth, there are some other reasons for companies eyeing M&A. It can be a tactic to cope with the increased regulatory pressure from governments for lowering drug prices and nip potential monopolies in the bud. Another reason is the relentless encroachment pressure from the tech giants like Google, Apple, etc.   

Therefore, the signs of the merger of some top Pharma companies are visible on the horizon. Merck’s buzz is likely to buyout Eli Lily, and Pfizer is likely to acquire Bristol-Myers Squib. However, the fact is that Eli Lily has acquired Prevail Therapeutics, a biotechnology company, for a $1 million deal.

Big pharma companies will use M&A as a strategic weapon for their growth, and the pace of deal-making will only become brisk.

Marijuana legalization for adult use

It is nothing new that the United States has always kickstarted global trends, and it continues to maintain the trend. The latest addition in the long list of trendsetters is the legalization of marijuana for adult use as well as for medical use. Colorado’s state was the first to make a move and remained the flag bearer in the march to spread the legal acceptance of marijuana across the continent.

The legalization process that started in 2014 generated $6.5 billion in cannabis sales that resulted in $1.02 billion in tax and revenue. It is a glaring example of the monetary value of the recreational drug, which has medical use too. Legalizing marijuana across the nation and all states can create a billion-dollar business and job opportunities, thereby opening new avenues for investors and consumers to explore.

The legalization of the cannabis industry is potent with the capabilities to trigger a domino effect across the globe that can significantly impact the Pharma industry in the area of research. Legalizing marijuana can offer new opportunities in the treatment of Alzheimer’s, cancer, Crohn’s, and epilepsy to glaucoma, anorexia, PTSD, and multiple sclerosis, as well as various other diseases. 

As we enter into a new decade, there are definite signs of emerging new trends, many of which are going to be game-changers for the Pharma industries. We wait to see the rise of groundbreaking studies coupled with aggressive research initiatives that will follow a completely new path and bolster the pharma sector’s growth rate. 

How big tech companies deal with privacy – Insight by Eric Dalius

Undoubtedly, security has become a very glaring topic in the world market today. There is a need to protect high-profile data. Data breaches take place worldwide, and as such, people have become very cautious and alert when it comes to talking about data protection. Securing the data has become the top of the priority list of most of the companies. All the tech giants try to regulate the behavior of people to prevent data breaches.

They store crucial information, find out what customers do, how they work, and their priorities that become crucial to security initiatives. Cyber-attacks have become a widespread phenomenon where hackers are targeting every aspect of big tech companies. These companies are struggling hard to battle out security issues. There is a need for cybersecurity, but you must know that to prevent security breaches of any company, they need to implement expensive measures to counter it and combat it adequately.

Many hackers use malware and other devices to get crucial information from big tech companies. Reports indicate that almost 81% of breach cases were hacking based, and 69% of incidence involved malware practices. Unfortunately, many big companies still do not understand the importance of protecting private information and taking crucial steps to prevent various kinds of data breaches.

Two important areas

  • Secure personal data
  • Securing corporate data

Some crucial measures to prevent a data breach?

Listed below are some accepted ways to prevent your company from data breaches

  • Set up a control list for people who have access to your business

Entrepreneurs should have control over people who have access to the computer system’s crucial data information in any firm. You should also specify whether employees can log in to your computer system when they work remotely or present in the office. It would help if you did not trust the employees unreasonably because it creates a difficult situation.

  • Frequently Change passwords

Entrepreneurs should frequently change the passwords of devices with crucial information so that there is no leak of information. It would help if you gave important passwords only to people or employees whom you trust so that information does not get diverged in other areas. Give information only to those people who do not misuse the information to harm the enterprise.

  • How to allocate security responsibilities and roles to the employees

You should identify whom to give access to crucial business information. It would help if you also switched these responsibilities from time to time not to distribute essential details of your firm to prevent misuse of information against your enterprise. Changing roles and responsibilities of the company among trustworthy employees becomes necessary to have no data breach, intentional or accidental.

  • Have crucial policies for social media and the internet

It would help if you allowed employees to have access to information but with a list of policies so that there is no diverging of information on platforms they are not supposed to do. Employees should know about the company’s policies regarding social media usage so that they do not hamper the reputation of the company or engage in activities that would mar the importance of the firm.

  • Use a filtering system for your online devices

Use appropriate programs in consultation with professionals so that you can block those sites that have content to harm your company through inappropriate viewing practices. Many employees engage in viewing inappropriate content during business hours; thus, you can use a filtering program to block such harmful sites from infecting the company software.

  • Install Security programs on each device

It would help if you had a network of programs that would block different malicious software—thereby preventing compromising crucial data of a company. Sometimes circulation of critical data on your computer may lead to severe losses. As an entrepreneur, you must become vigilant and prudent to install security programs that would keep malicious software away from your company devices so that information does not get compromised.

  • Keep track of peer-to-peer websites

If your company indulges in peer-to-peer information sharing, you must become very cautious about security measures. Try to secure crucial information regarding import matters so your company’s announcement does not become public if you do not want to do so. Sometimes peer-to-peer sharing of websites leads to confusion and sharing of crucial data, thereby leading to breaches. 

  • Adequately store crucial date of the company

Prudent entrepreneur keeps crucial and critical company data such as personal information of the customers stored offline. The data stored online can get subjected to cyber-attacks; therefore, it is advisable to store crucial data offline so that you can keep it secure and safe without compromising your customers’ personal information. If your firm cannot protect the customers’ essential details, it will mar the firm’s reputation reducing the business to a considerable extent.

  • Get insurance for cybercrime issues

Getting insurance for cybercrime issues can cover the liability if there is a breach of data or cyber-attack on your company. However, different policies have different terms and conditions as some policies include legal liability, direct loss, and even consequential loss due to security breaches of crucial data of the company. Some insurance providers also have network security issues such as resources and means in case of an attack.

As such, big tech companies need to take safety measures to secure the data to face the consequences later. Securing company data is a costly affair, but if crucial data gets circulated in the market, it will be more expensive.

Therefore, an entrepreneur can become successful by being calculative to ensure no breach of data would hinder the firm’s growth. Some firms hire professionals to keep their data secure. Sometimes data breaches can lead to a company shut down. As such, it is a prudent step to take precautions beforehand. It will help if you remain updated on the security matters of your company. Failure to do so might cost you the existence of your company.

Eric Dalius throws light on Key Start-Up Considerations for First-Time Entrepreneurs

When it comes to startups, most entrepreneurs behind them had professional experience in the past. However, just because they were good employees does not mean they will be equally outstanding employers. There is a difference between the employer mindset and the employee mindset. First-time business owners of start-ups must know this difference if they plan to head a lucrative venture in the future.

Employer mindset versus the employee mindset – Eric Dalius-

Eric Daliussays that the employer and the employee have different skill sets. When you have made this switch to an employer, you should remember the following points-

  1. The cash will stop at you. You are the only one responsible for the direction that your organization will take.
  • You need to discover ways to motivate your employees in the business. No two individuals are the same, and you must be ready to take two different actions for motivating diverse people in your company. If you fail to find the right way to motivate your employees, it will fall again on your shoulders. There will be no one else present to motivate your employees for you.

Step out of the comfort zone

He says that when you are an employer, you step out of your comfort zone. There are issues that you should deal with daily and quite frequently. If you are not equipped with the right skills to deal with them, they will escalate into bigger problems. This can be detrimental to the future progress of your company. You do not have to feel nervous about the prospect. Everyone who has been a first-time entrepreneur of a start-up has faced it at some point of time or the other. Give yourself some time and experience; it surely will get better.

Costs and opportunities are invaluable

As a first-time entrepreneur, you must remember that costs and opportunities last for some time only. When you establish a start-up, some opportunities are fickle and fleeting. They depend upon you and your company. You need to take that much you are capable of. Again, you should be prudent to grab opportunities while they exist. If you miss them, they might not come back again even if you are ready.

Opinions versus assumptions

The first few years of your start-up is very crucial. It might take some time, but you should jump into the ocean and learn how to swim if you want your startup to become a successful business venture. You should also never allow your opinions to cloud assumptions. When you begin with your business, it is natural that you will assume that the company will take a certain course in the future. However, most of the time, it might not happen that way.

You need to be alert and responsive to the ongoing trends in the market. At the same time, you must know what your customers want and think about your product/service. These are the true indicators of your business and will steer it forward with success.

How can insider trading impact your business, explains Eric Dalius

Many people have vague ideas about insider trading as they do not entirely understand the concept and impacts of insider trading on business processes. What is insider trading? Insider-trading is a prohibited and illegal set of activities related to investment rate based on non-public material information. The participants of insider trading make a lot of profit. There are many advantages and disadvantages of insider trading because it comes with many risks, and as it is illegal, you might get convicted. Suppose a publicly-traded company sells stock to a person who already has necessary information concerning a store that was not released in the public domain and got bought or sold. In that case, you must say that insider trading has taken place.

Thus, insider trading is legal. However, this type of trading is declared illegal only when an insider makes the deal. It merely means selling stock based on information unexposed on a public platform.

A lot of debate goes around in the national community, where both academics and professionals discuss whether insider trading is suitable for business or bad. You must know that insider-trading is not only limited to directors, management, or employees of a company. It also extends to fund managers, brokers, investors, and even others who can violate basic trading laws to get information that is not public.

Some crucial points about insider trading

To understand insider trading operations of the society, you must study the points listed below:

  • Insider-trading is the sale or purchase of shares by a person who has pieces of information unexposed on the public platform
  • Many people believe that insider trading is legal because it uses crucial information in the market, and some trading laws can prove more harmful to the people. Rules are more dangerous than the selling of shares through insider trading.
  • Many people argue against insider-trading because they feel it is unfair. It also prohibits people from participating in the market, making it more difficult for companies to increase capital, says Eric Dalius.
  • There is no doubt that any insider trading that has its basis on information that is non-public becomes illegal.

Going through the points mentioned above can help you have a general idea about insider trading mechanisms.

What are the advantages and disadvantages of insider training?

Listed below are certain advantages and disadvantages of insider trading that can impact your business processes.

There are some advantages to insider trading as it brings about substantial financial gains to the party. Still, some disadvantage comes with insider trading as it is risky public exposure leading to legal punishment or financial penalties.

  • In insider trading, the participants can sell their shares for multiple reasons, but they purchase in one particular hope that the price will increase.
  • Insiders have acute knowledge about the industry and operating mechanisms of shares
  • Insider-trading deals can become profitable only if the prices go up. As such, insiders trade on minute hidden information to make the right move and at the right time. These actions do not only benefit the insider but also sometimes prove profitable to the security holders of the firm.
  • Everybody makes investments to make money. Similarly, insiders do the same thing as insiders use company shares when they feel the company will give out better performance, in the long run, says Eric J Dalius.

People in favor of insider trading say that it only makes the share market more efficient. Insiders believe that even if the practice of insider trading gets barred, it might lead to errors on the part of the investor because of delaying the inevitable circumstances. If crucial information is secured, the participants will receive information through other channels or comprehend it through price movements. However, it is not a safe practice because it can lead to errors. It is not secure to function in the share market because they do not have full information. As such, if trading laws get demented, then it might send the person to jail. As most insider trading law becomes complicated, ordinary people will become harder to understand what is legal.

Many times accidentally, people might break the law without even knowing that they are doing so. Many people might accidentally disclose non-public information in frivolous chats. Suppose the other person concerned might use this information and gets caught. In that case, the person who accidentally exposed crucial information must also go to prison for being the source of leaking information. Therefore this kind of scenario creates confusion, thereby diverting people from this sphere.

Disadvantages of insider trading

There are few disadvantages of insider-trading where one line of argument says that only a few people would use non-public information and make profits. As such, the other might think that the share market is unfair. It would undermine the confidence which people would have in the financial system; therefore, no retail investor would like to participate or become a part of the share market. Insiders who have crucial non-public information would make more gains, thereby avoiding losses. If more and more people refrain from participating in the market, they will find it challenging to raise funds to generate capital.

Many such countries declare insider trading illegal. Certain crucial aspects of insider trading were declared illegal.

Undoubtedly there is a battle between critics and proponents of insider trading against insider-trading and believe that it disturbs the balance in favor of people with crucial non-public information. However, people who support insider-trading believe that it reduces and makes the share market more effective. Irrespective of what individuals think, insider trading is illegal, and it can lead you to prison or even imposing heavy penalties.

As such, you can say that it can bring about substantial financial gains, but if you get caught, you have to pay a fine, or you might even go to jail. Whether or not to indulge in insider trading is up to you because it comes with substantial financial gains along with risks. Therefore you have to decide the right move to understand the effects on business processes.