The Australian Telecommunications Industry

For the general public, from media reports, the telecommunications industry is in chaos.However reports show a different story. The Australian telecoms industry is in good shape particularly since 2000.
Telecommunications revenues are up by 5.5% in 2005, and it’s forecasted to rise another 4.1% for 2006.The average growth for the last five years is 4.6%.
This may or may not have had an impact on why, on 17 August 2005 the Australian Government set in motion the abandonment of its policy for the operational separation of Telstra by not selling the remaining 51% of Telstra shares.In August the Australian government also shook up the various cosy telecoms relationships in Australia. They finally revealed the problems Telstra was and is facing. This was something that the industry had been aware of for years.As a result Telstra’s share price fell to more realistic levels. In early September the government introduced its new telecoms Bill into Parliament. For the full (free) analysis report of the Telco crisis and new legislation follow the links below.What does this mean for customers? What does this mean for the industry? We can only wait and see.Our sources for this article or for a full report go to or mailto:[email protected]

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What Mom Didn’t Teach You About Working Capital Business Financing

If you’re like most of us Mom never really gave us a lot of advice on working capital! That’s why for such an important business financing subject we recently wrote on an older article in Canadian Business magazine that covered a total of 15 – yes that’s 15 ways) to finance your business. Perhaps these were the secrets of the Holy Grail that Mom never taught us, we thought?The reality was that we had some strong comments and additional information on those 15 items, and we commented on 7 of them in the last article. Let’s cover off those final items and hopefully get some real value on what Mom never told us about these things!Under the category of ‘ government programs’ the article talked about various federal and provincial programs or initiatives for business financing. Mentioned was the Community Futures program as well as the Canadian Youth Business Foundation. These are very narrow and segmented programs, in the case of the Youth Foundation, guess what, you have to be a youth, which hardly suits most business owner’s.Community Futures programs have tended to be rural in nature, have ad minimal funding allocated to them, and seem to have focused primarily on start ups that might generate employment.Secondly, Mezzanine debt was referenced. This is of course essentially an unsecured cash f low loan provided by private finance firms. In many cases it focuses solely on cash flow as the repayment vehicle. The bad news on mezzanine debt is that it typically is available for transactions in excess of 5 Million dollars, which certainly doesn’t work for most small and medium business owner’s.For the record mezzanine financing rates are in the low to mid teens.Private equity was out third source of capital. Typically these funds are provided by niche Canadian and U.S. private firms who focus on equity and convertible financing instruments that force the business owner to give up partial ownership.This isn’t necessarily a bad thing if you get the working capital and business financing that you need, but you should absolutely be prepared to give up some ownership on these transactions, which are often quite substantial and take several months, if not longer, to complete.Hey, let’s go public and have access to unlimited sources of capital. That’s the typical pitch made to Canadian corporations who consider this type of financing. The reality is that a true IPO listing on the TSX or Venture exchange in Canada requires a significant capitalization and track record. Ownership becomes diluted, and companies are forced into very strong levels of reporting and disclosure. Many of our clients have ‘ gone public’ via reverse take overs of shell companies that had a listing, we have never seen this work satisfactorily, at least from a viewpoint of giving them unlimited working capital.The Canadian Business article focused on the federal SRED program. Finally! A good one! An absolutely great program that provides billions of Dollars of capital for any firm in Canada that qualifies for research spending and adheres to the program guidelines. Sred claims can also be financed, similar to a receivable, as soon as they are filed, that supercharges the program even more from a working capital perspective.VC money is often bandied about and sought by many corporations. Venture capital in Canada is struggling in the 2010 environment, any fundings seem to be going to firms that have been previously funded, and are getting additional capital (to stay alive?). Any Venture capital firm expects a high rate of return relative to the risk they are taking in financing your firm on an equity basis – in fact traditionally, as the article stated, the venture capitalists are looking for a 5 times return. Unfortunately for many Canadian business owners these types of fundings go to the sexier industry segments such as biotechnology, high tech, etc.Well, that’s it. Hopefully we haven’t sounded too negative, but the general trend clearly are that the ‘ 15 ‘ options outlined in the original C B article clearly need to be grounded in a bit more reality for the average Canadian business owner and financial manager seeking capital. Speak to a trusted, credible and experienced business financing advisor who can provide you with an up to date realistic alternative on business funding.

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Advantages Of Internet Advertising

When we talk of Internet marketing, it contains several things. Email advertising, web banners, advertisements on web 2.0 sites, advertisements on manufacturer’s web portal, pop-up advertisements, advertisements through World-wide-web affiliates – they’re all an element of online advertising.The benefits of Online AdvertisingBroad ReachWhen it concerns reaching very many clients, no different medium can defeat the Internet. Internet promotion has broken almost all geographical restrictions which existed with other mediums. Global organizations, tiny local organizations, anyone and every person can increase their product sales and profits by online promoting. This is definitely on the best of exclusive features of advertising on the net.Target OrientedWith online marketing, you will find websites which cater to a certain people who have some specific interests or who participate in a specific age group. You can find activities sites, medical sites, technology websites, social networking sites which are basically mostly frequented by youngsters; religions sites, travel websites, and so forth. Thus, Internet marketing techniques gives businesses a way to reach people who would be specifically interested in buying their product or service. For example, a new cell phone available in the market will find it is possibilities if advertised in a technology or a social network site.Quick Conversion ProcessOne of the actual foremost benefits is that this conversion time with the advertisement into a buy is amazingly less. All the advertisements on the net have links which allow the customers to pick the product there. This in ways hikes the profits of any business.Highly HelpfulFrom the consumer viewpoint, certainly one of the benefits is that they’ll know in detail about the product, its characteristics, durability, method useful, etc. With many advertisements, you can find business colleague reviews available and help a business partner to make an educated decision in terms of purchasing a product.Cost-effectiveAnother advantage is it is very cost-effectual. Just like other mediums of marketing, let it be the idea television or print, you really should not say for sure whether the consumer who’s watching or reading the advertisement is certainly planning to pick the product. But through pay per click traffic advertising, a marketer will be paying only when the client visits his web or looks through the product that has sold. So, comparing from this perspective, Internet advertising costs are much less.An easy task to Work withAll type of associations, even the people who may have just started off, will see advertising online much easier. With other advertising mediums including television and printing, businesses need to hire the services of the advertising agency to make appropriate advertisements for them along with buy advertisement place in newspapers or even T.V.s. With web advertising, each one of these headaches will not exist. Even a business that is just a day old can advertise its services online, by starting its own website.

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