In the wake of advancement in science and technology conducting business is way too easy than it was in the past. In this tech based world apps and others gadgets are being developed to help people start their business with ease. If you want to run a startup from your phone then there are certain factors that are to be considered. These can lead to the downfall of your new business if not implemented properly. These factors are though tech in nature but still they can be implemented in the best manner with a little bit of concentration. The points below are to be considered to overcome the major market share:
- Accounts receivable data
It is one of the best analytical points that can be implemented. The cash after discount is less can also be used to clear this phenomenon. The complete management plan should be there before this is implemented. For instance on 30 April 2016 and on 31st January 2016 the company has $430M and $530M respectively in terms of account receivable sold and held by the financial institutes. The discount fees in this regard are $1.2 million and $1 million. In terms of income statement these discounts will be recorded as the other (income) expense net. Before a business is started this sort of data is to be analyzed for the companies of similar genre.
- The stock market analysis
It is also one of the most important points. Strong stock analysis means a strong position in the market. At times the overall stock market also affects the business to a great extent. For instance on 30th June 2016 the London stock market was down by 0.76% and the index showed 6311.57 points. On the previous day the stock market was as high as 3.58%. In Frankfurt stock market an average downfall of 0.64% was recorded and the index showed 9550.43. In addition to this the currency market is also to be considered especially if cross border deals are to be conducted. For instance on 30th June 2016 the GBP was up by 0.20% as compared to USD. The exchange rate at the start of the day was $1.3456. Gold was down by 0.26%.
- Stock based compensation
WHAT MOTIVATES BETTER WORKERS? It is the point that answers all the questions. The stock based compensation is yet another thing that is to be considered while the technical data of the business is analyzed. The restricted stock activity is also one of the most important things that are to be considered. The statement is to be presented to the startups so that they can analyze it in the best manner. The example statement that is to be considered in this regard are as follows:
Non vested on 30th January 2016 469,329
Granted 219,407
Vested (161,148)
Cancelled (3,959)
Non vested on April 30th 2016 550,629
The above statement has just been created as an example. It is advised to the financial analysts to carry out the stock based compensation calculation and restricted stock activity of every rival based on the data extracted from annual financial statements. It will ensure that before the business is started a complete market info is there in hand to support the operation and carry them out in right direction.