Helping You Define Your Lifestyle

The Differences between Debt, Equity, and Venture Capital

You may have heard of financial terms like “private equity”, “debt capital”, and “venture capital”. Those are all terms that managers like Sun Capital Partner’s Marc Leder deal with on a daily basis. All of those terms refer to investments, and there are some key differences between them. It is important to understand those differences if you are an entrepreneur, so that you know which one will be most applicable to you.

Debt Capital

Debt capital is very closely related to a bank loan, which is one that is repaid with interest. Debt financing is common with new entrepreneurs who need startup capital. This is why most will go to a regular bank, although investment banks exist for those who require very large sums of money. The investor who provides debt capital does so because this is a low risk type of financing, particularly when compared to private equity. This is because the money is borrowed to you, in the same way as a mortgage or car finance. The interest rates vary, although an investor will usually want to see at least a 10% return on the money they received. There are usually stringent time limits attached to this as well.

Private Equity

Private equity is very different because you don’t have to pay it back to an investor. Rather, it looks at the money that is in a business, collected through growth. Usually, it comes from an equity fund owned by high net worth individuals who look at ways to grow not just their own capital, but the economy as a whole as well.

Venture Capital and Private Equity

Private equity comes from private individuals or institutions owned by private individuals. Usually, these individuals are people who have a great deal of financial experience, including institutional investors. Venture capital is very similar to this, but it is generally only provided to companies that they can prove they have high growth potential. Venture capital, in a way, is less risky than private equity, in other words.

Anyone who approaches people like Marc Leder, or firms like Sun Capital Partners, must do so with a well-thought through plan. While debt capital is usually the easiest to obtain, it is also the most expensive and generally in the lowest amounts. Venture capital and private equity will give you far more chances of really experiencing growth because, firstly, the money involved can easily reach millions of dollars and, secondly, because you will have the financial expertise of people like Marc Leder behind you. However, because these financial investments are more high risk than debt capital, they are also more difficult to obtain and competition is fierce.

In order to be considered for venture or private equity capital, you have to be able to demonstrate that you are better than anyone else. You must be able to show that you have an excellent management team and a clear strategic direction. Essentially, you have to be a profitable, established company that is looking at a way to grow even bigger.

Leave a Reply

Your email address will not be published. Required fields are marked *

The Basics of Wardrobe Design and Constructions

Wardrobes allow for custom design storage that makes organization easier around your home and particularly the bedrooms. It allows for multiple sections of drawers, doors, and shelves so that you can store items in a more functional and aesthetically pleasing manner. Without a good wardrobe design, the bedrooms in your house will often be cluttered with socks, ties, belts, shirts, and pants. Here is what you need to know about the basics of installing a wardrobe.

Size and Dimensions

The main difference between a closet and a wardrobe is that the former is built into the wall. Since wardrobes are external, they can be of whatever size that fits your needs. However, certain conventions still influence the dimensions of the wardrobe today.

  • Depth: The depth of the wardrobe can be just deep enough to allow for the hanging of clothes. However, the depth can vary from between 50 and 70 centimeters and 62 cm is the recommended depth.
  • Width: It needs to be wide enough to accommodate the swinging of doors and placement of items in the open spaces with minimal obstructions. The width can vary between 40- 300 cm.
  • Height: This will depend on the dimensions of the space you want to place the wardrobe. Usually, wardrobes are between 140cm to 250cm high.

Style

You need to consider the style of the wardrobe if you want to make it both functional and aesthetically pleasing. There are many styles of wardrobes today with designs to incorporate your storage needs. If it is for hanging clothes only, an open section will be enough for most of your needs. However, you may require more partitions if you find there is also a need to store other items such as shoes, belts, ties, cufflinks, etc.

The wardrobe often has one, two or three partitions. Two partitions can be one for storing clothes, and the other partition set aside for other items. You may opt for one with more partitions if you have a wider range of accessories and you need your space to be more functional. Instead of getting a new wardrobe, you can add shelves to any of these partitions. If you are sharing the wardrobe with a partner organizing your things becomes much easier when you have more sections and shelves.

Materials

Old wardrobes were ready made and were built with metal, usually iron. Many homeowners bought them because they had a safe inside. Nowadays, wardrobes are lightweight and made of more affordable materials. Most are made of wooden boards and plywood to divide partitions and sections. A cheaper alternative to plastics such as MDF and particle boards are becoming more popular than plywood which has limited applications due to relatively high costs. For aesthetics, materials such as colored glass and polyurethane are used to provide the extra gloss and a finish to enhance its appeal.

Construction

Doing your own construction will require that you acquire the skills to work with hardwood and plywood, amongst other materials used to make wardrobes. If you are not confident with your ability to handle the process use your local handyman services to reduce the risks and associated costs.

Remedial Massage Can Heal!

Medical science has proven the benefits of all legitimate massage styles. Massage therapy has built a reputation for helping you calm your nerves, release tension and help eliminate pain you have in your muscles, tendons, ligaments, common joints and bones.

There are many different types & styles of massage, each with a different focus, but generally speaking they all do what is mentioned above. However some massage styles are more rooted in traditional medicine. The claims of medical benefits from massage therapy has built over decades to the point where many traditional medical practitioners have utilized elements of massage and found them to be extremely helpful for patients.

At the top of the list of effective massage types, is remedial massage. This type of massage is practiced by the most well-trained massage therapists and is used in hospitals and medical clinics around the world. The reason it has become so popular is because of the specific benefits remedial massage offers. Here are a few of those wonderful benefits.

Understanding Remedial Massage

Remedial massage begins with a detailed and in-depth assessment of the patient and their body. There is a specific focus on the condition of the ligaments, connective tissues, tendons, joints and muscles so that the therapist can understand the type of therapy that needs to be implemented. This vital information dictates to the therapist the type of massage regimen to use. Each patient will have a different set of circumstances and require a different, specialised therapy.

Remedial massage therapists are trained in the movements and workings of the body including pathophysiology, physiology and anatomy as well as many different types of massage. This massage therapist will mix & match different massage techniques in order to create the most effective massage therapy.

Benefits of Remedial Massage

Remedial massage patients will often visit a remedial massage therapist on the advice of a medical physician if the patient has chronic, recurring or severe physical injuries that have a chance to be helped with massage therapy.

Remedial massage can benefit patients by:

  • The elimination of muscle tightness
  • Increased function in the Lymphatic System
  • Improved circulation
  • Better joint mobility and flexibility

Recovery from Soft Tissue Injuries

Remedial massage can also heal some soft tissue injuries. These can occur from many situations such as a trip or fall, car accident, playing sports or due to a degenerative disc or tissue condition. Remedial massage is able to aid with quicker and better healing of these injuries.

Remedial massage therapists are often thought of as the most skilled massage therapists because of their in-depth knowledge of the body and how to use massage to both relieve pain and heal. They take techniques from the best massage therapies and use them as needed on patients.