What are Payment Challenges in Gig Economy?

Gig Economy

The gig economy refers to the collection of markets that focus on a gig or job to match providers to consumers. The basic model involves gig workers entering into formal agreements with on-demand commerce or companies to provide products or services to the company’s clients.

Alan Safahi, an experienced entrepreneur and founder of a San-Francisco-based startup company, says that the gig economy will become a mainstay worldwide, especially during the Covid-19 pandemic.

Alan Safahi Orinda has done substantial research on the proliferation of on-demand products and services. The leading entrepreneur says that sharing economy will change the way people live, work, and spend money. Safahi’s research shows that freelancers will make up 50% of the U.S workforce within one decade.

Although freelancing and the gig economy offer various benefits, this type of niche or work involves trade-offs. While people work on-demand and multiple jobs with independence and flexibility, they experience volatility in payments. Read on!

Lack of Access to Payment Methods

According to Alan Safahi, most people who use cross-border payments in the gig economy face numerous challenges. Lack of access to payment methods is the biggest challenge faced by gig economy workers. For instance, funds transfers through global payment processors, Fintechs, remittance companies, and banks do not favor freelancers and gig economy workers.

For instance, PayPal is the most popular platform for gig economy workers in most countries. However, the company does not offer services in over 80 countries worldwide, making it challenging for people to pay and receive funds.

Payment and Transparency Issues

According to Safahi, about 75% of gig-economy workers would stop selling their products and services and leave the industry if the authorities fail to resolve the current payment issues. Gig economy workers and freelancers look for better and advanced communication and business support services, especially when there are problems with payments and delays.

Gig economy workers likewise crave greater transparency and streamlined accuracy with payments. Safahi says that the biggest challenge for such workers is not having a solid platform to monitor their financial transactions. However, the good news is that some banks in the U.S offer a feature like cash-bank and multiple currencies wallet to millennials.

Excessive Delays and Fees

High fees and commissions are some of the biggest challenges faced by gig economy workers when receiving payments. For instance, lack of transparency in charges, slow settlement speed, and fluctuating foreign exchange rates are a massive frustration for freelancers or gig economy workers.

Safahi says that online marketplaces have segmented their payment models into B2C and C2B strategies. The time lag is usually caused by intense banking regulations, automated clearing house (ACH) transfers, and foreign exchange rates.

Final Words

Alan Safahi Orinda argues that pre-Covid-19 and post-Covid-19 regulations remain the same for gig economy workers. Like other businesses, gig workers worldwide have been highly affected by the crisis brought by the pandemic. Safahi suggests banks, private companies, and payment processing platforms review their strategies and streamline payment processes for gig workers and freelancers.

Originally Posted: https://safahi.com/what-are-payment-challenges-in-the-gig-economy-ad9beabd3dbf

Why is FX Liquidity Important in Forex Trading?

The foreign exchange market is the backbone of global trade and international investments. According to Alan Safahi, an experienced entrepreneur and a leading startup founder in San Francisco, individuals and businesses must understand the significance of FX liquidity for three reasons:

· The average trading volume daily is $5.4 trillion, making foreign exchange the world’s second-largest market.

· Forex trading plays a substantial role in guaranteeing efficiency and no-arbitraging conditions in stocks, bonds, and derivatives.

· Forex trading has an over-the-counter (OTC) nature characterized by market heterogeneity, and fragmentation, causing unprecedented liquidity patterns.

Importance of Liquidity to Forex Traders

According to Alan Safahi Orinda, the forex market is a decentralized international market and has no physical location because currencies’ selling and buying occurs electronically, mainly between banks. However, other participants, such as pension funds, hedge funds, investments, insurance companies, and corporations, also play crucial roles in forex trading.

Safahi says that most forex traders do not understand the concept of FX liquidity. It is crucial to comprehend this concept to streamline your trading operations. The successful entrepreneur and an expert in forex trading “Alan Safahi” says that liquidity refers to the current demand for a product or service.

In financial markets, liquidity refers to the quick conversion of a specific device into cash, physically or electronically. For instance, short-term U.S bonds and gold are a few instruments with higher liquidity rates. Traders buy and sell these instruments throughout the world rapidly after reaching an agreement at a reasonable price.

Volume Option

According to Safahi, brokers often offer a volume option, allowing the trader to measure the liquidity amount on the market. The volume option is determined by analyzing different bars on the volume charter. Bear in mind that each volume bar represents the traded amount, giving traders the volume liquidity’s approximate values.

High and Low Liquidity

Alan Safahi recommends focusing on high liquidity in the forex market. It refers to a currency pair that you can buy and sell in significant sizes without significant variances in the exchange rates or price levels. According to Safahi, traders must focus on major currency pairs, such as:

· EUR and USD

· USD and GBP

· AUD and USD

· USD and CHF

· USD and NZD

· EUR and GBP

· JPY and USD

On the other hand, low liquidity in the foreign exchange market refers to a currency pair that you can’t purchase or sell in significant sizes. Alan Safahi gives an example of exotic currency pair, the PLN, and JPY.

Look for Signs

Alan Safahi recommends looking for various signs to determine the market liquidity. The first one is figuring out gaps when trading forex because they vary compared to other markets. Bear in mind that price gaps occur in the foreign exchange market if high-impact news or interest rate announcements are against expectations.

Another thing you need to consider is the volume option offered by brokers on the chart. Using the chart, you can measure the market liquidity and interpret the FX liquidity by analyzing different bars on the volume chart.

Moreover, if you are a short-term trader or scalper, make sure you are well-aware of varying liquidity through the trading day. Bear in mind that the US session and London session are major moving market sessions highly prone to large percentiles moves and breakouts on the day.

Final Words

Liquidity is a foreign exchange market that refers to how fast traders can convert their investments into cash. Safahi recommends understating the concept of liquidity and learning ways to measure and analyze FX liquidity to get the most out of your trading.

Originally Posted: https://safahi.com/why-is-fx-liquidity-important-in-forex-trading-bd4723a89232

Guide to Freelance Payment Methods

Alan Safahi, a leading San Francisco-based entrepreneur and startup founder, has made substantial research on freelance payment methods. According to Alan Safahi Orinda, freelancers represent over 35% of the workforce worldwide, and there are over 1.1 billion freelancers of the total 3.5 billion people in the global workforce.

Safahi’s research and analysis show that freelancers contribute more than $1 trillion to the U.S economy and about 5-7% of the total gross-domestic-product (GDP). About 48% of freelancers charge a fixed rate when selling their products or services, while 29% follow an hourly approach, and 23% experience use both methods.

There are numerous ways to receive money, and each method has its own advantages and disadvantages. Freelancers don’t always choose because most companies hire people with their preferred funds’ transfer methods implemented. However, many companies ask freelancers about their preferred payment methods. Therefore, it is crucial to choose wisely to maintain your cash flow. Read on!

Checks

Although many freelancers have forgotten the old-fashioned paper checks in this digital age, some companies hire freelancers to pay by check routinely. According to Alan Safahi, some freelancers prefer checks to other payment methods.

The biggest advantage of checks is that it doesn’t cost you money to receive them. However, the downside of checks is that you will have to wait a few days for your check to arrive if you have a local client.

Direct Deposit

Some freelancers prefer receiving payments by direct deposit method. A direct transfer occurs between the client and the freelancer’s bank. Alan Safahi says if a client offers this option, you should take it because it is brainless on your end.

For instance, you offer your products or service, get the job done, and the money appears in your bank account. However, the only downside with direct deposit is that your client has to initiate the process through his own bank.

PayPal

PayPal is the gold standard for many entrepreneurs to accept payments. It is one of the most popular payment processing platforms, allowing freelancers to accept different debit and credit cards online. Likewise, your clients can pay you from their bank accounts directly.

According to Alan Safahi Orinda, PayPal is an easy and effective method for freelancers and their clients. Because the platform is widely recognized and used, clients usually don’t balk at using it. Similarly, it enables you to receive payment instantly.

The downside of PayPal is that it charges a 2.9% transaction fee and $.30 per sale. Although this is a small free, it adds up to substantial amounts over time. For example, if you earn $3,000 per month and receive payments through PayPal, you will pay around $900 over a year.  

Merchant Accounts

A merchant account is a unique bank account that enables a freelancer to accept money from their clients’ debit or credit cards directly. Most clients find it convenient to pay funds from credit cards because merchant accounts have lower transaction fees than payment platforms like PayPal and Payoneer.

Merchant accounts likewise enable freelancers to set up recurring payments and offer business support. The downside of a merchant account is that it will charge a portion of each transaction.

Final Words

There are numerous ways to pocket your profits from selling your services and skills through freelance platforms. However, there is no single perfect product or solution for you, meaning you need to choose the one that best fits your needs.

Originally Posted: https://alansafahi.com/guide-freelance-payment-methods/

How Manage Foreign Exchange Risk

Foreign Exchange Risk

During the Covid-19 pandemic, the foreign exchange market has seen dramatic fluctuations, including changes in currency rates. The global economy has almost ceased due to strict regulations regarding lockdowns and contain the outbreak. The pandemic has affected the stock market and oil prices, putting brakes on the global economy.

According to Alan Safahi, a San Francisco-based startup founder and entrepreneur, the forex market seeks safe-havens, and traders move toward the U.S. Dollar, Swiss Franc, and Japanese Yen. Safahi’s research and analysis show that commodity and smaller currencies have also suffered during the pandemic.

These currencies include the New Zealand Dollar, Australian Dollar, Swedish Krona, and Norwegian krone. In today’s article, we will guide you on how to manage foreign exchange risk. Make sure you read this guide thoroughly to get the most out of it. Read on!

Do Some Background Research

Alan Safahi of Orinda suggests traders do some background research on currency volatility to source the right supplier or search for overseas property. Because foreign exchange is a complex market, it is crucial to consult a specialist or expert who can guide you on the risk mitigation strategies and explain how to stay stable in the market.

Invoice and Contract in U.S Dollars

Individuals and businesses use different protection strategies against fluctuations in exchange rates. Invoicing and contracting in U.S dollars is the easiest strategy to keep your expenses, revenues, and profits in the same currency.

Traders who are active in their home currencies will have no transaction and translation risk because these risks are passed to their overseas business partners. However, some overseas business partners may charge you for them to take over the risks.

Use a Foreign Currency Bank Account

According to Safahi, Founder at Zed Network, a payment orchestration platform focused on cross border payments and FX, “matching” is another effective option to mitigate or manage risks in foreign exchange. For instance, you need to open a foreign currency account and match your sales receipts from foreign customers with payments due to foreign suppliers with the same currency.

Make sure you deposit the receipt in the bank account and then use your balance to pay the supplier. It is an effective strategy because it reduces your currency exposure to your balance left in the account, especially after meeting the foreign-currency liabilities.

Use Hedging Methods

Safahi, a global entrepreneur with thorough knowledge of hedging methods for foreign exchange risk management, suggests that, if several months are likely to pass between your contract signing and payment in a foreign currency, it is better to hedge it through a forward exchange contract.

Bear in mind that such contracts are typically the “purchase now and pay later” deal, allowing you to lock in exchange rates at a determined date in the future. According to Alan Safahi of Orinda, the set date is usually anywhere between 6-24 months.

A forward contract is an excellent way to manage foreign exchange risk because one party buys and another sells currency on a set date in the future at a predetermined exchange rate. You can make contracts with a bank or currency provider through Zed to minimize risks.

Final Words

Foreign exchange risks involve fluctuations in currency exchange rates, affecting a company’s financial performance. Remember, these changes in currency exchange rates can significantly damage your business profits by consuming into margins. If you want to manage foreign exchange risks, follow the tips and tricks given above. These guidelines are based on Alan Safahi’s years of experience and up-to-date knowledge of the market.

Originally Posted: https://vocal.media/trader/how-to-manage-foreign-exchange-risk-an-essential-guide

How Does Foreign Exchange Trading Work?

According to Alan Safahi, a leading San Francisco startup founder, advisor, and entrepreneur, foreign exchange trading, also known as forex trading, is a global marketplace that focuses on exchanging currencies against one another and involves the relative value of one specific currency over another.

Research conducted by Alan Safahi of Orinda, CA highlights that forex markets are the largest and most liquid asset markets worldwide due to streamlined trading, commerce, and finance. The foreign exchange market has a colossal amount of liquidity, enabling people to actively trade trillions of dollars every trading day. In today’s article, we will discuss how foreign exchange or forex trading works? Read on!

Currency Value Measurement

A currency value is analyzed and measured through the amount of another currency it can purchase. The process is known as the price quote, which contains two prices: a bid and ask. People use the “ask price” when buying a currency. Likewise, traders use the bid price when selling currencies.

Bear in mind that a financial instrument’s ask price is usually higher than the bid price, meaning a bank purchases your currency at slightly lower prices. In contrast, the bank will sell it at a higher rate. Safahi advises traders to learn the basic and advanced concepts of a bid and ask price to measure currency value.

Liquidity Analysis

According to Safahi, liquidity refers to the activity levels of the market. Traders determine liquidity by analyzing the number of traders who are actively trading and measuring their total volume.

Because forex trading occurs 24/7, it is the most liquid market in the world. More liquidity means tighter spread, which favors everyone. Because trading is ongoing, traders can conduct it smoothly with plentiful liquidity. However, Safahi advises traders to keep an eye on price gaps to evaluate significant price shifts over the shortest periods.

Placing a Buy Order

Traders must focus on forex mechanics. You can trade at the click of a mouse on any trading platform. For instance, you will place a buy order on the USD/EUR currency pair and use a portion of funds from your account to buy the pair’s base currency. For example, you will buy the USD and sell the pair’s quoted currency, the EUR.

You will place the order with the broker, market maker or communicate with the Forex Interbank Market directly. Remember, the interbank market has big players. Safahi states that you can place orders to sell currencies that you don’t own.

Close the Order

Depending on your trading strategies, you will wait until your purchased currency has increased value relative to the sold one. When you are satisfied with the accumulated profit, you will close the order.

Likewise, the broker will perform the opposite transactions – selling dollars and purchasing euros. Bear in mind that you can also place a sell order to reverse the process. Understanding these concepts is essential for beginners to streamline their trading.

Final Words

It is often confusing for beginners to understand the concepts of buying and selling in foreign exchange markets because, in every trade, traders exchange one currency for another. It means there is always a “buy” and “sell” in every trading process.

Originally Posted: https://alansafahi.com/how-does-foreign-exchange-trading-work/

Businesses Benefit from Currency Exchange

Currency Exchange

Small-medium businesses play a crucial role in a country’s overall gross-domestic-product (GDP). According to Alan Safahi, a business advisor, entrepreneur, and San Francisco Startup Founder, small-medium enterprises contribute to 50% of the U.S GDP.

However, Safahi says that companies often find it challenging to manage cash flow, especially when they do business overseas with significant currency fluctuations, leading to uncertainty and risky profit margins.

Alan Safahi of Orinda advises businesses to use the right combination of cash management payment strategies to improve their cash flow and protect profits. For instance, Safahi recommends having foreign currency accounts because they are ideal solutions for companies that have several transactions in specific currencies.

Besides, having cash ready in a particular currency can help businesses make informed decisions, react quickly, and reduce risks. Foreign currency accounts also lessen the need for multiple currency transfers. In today’s article, we will give you five currency exchange strategies to benefit your business. Read on!

1. Use Spot Payments

Spot payment is an excellent strategy for businesses, allowing them to buy or sell currency at the current rate. Safahi recommends spot rates for smaller and less regular payments. You can also use it for rapid currency exchange. Make sure you look for providers that offer competitive spreads and low fees between buying and selling rates.

2. Hedge with a Forward Contract

It is an effective strategy that allows you to buy a set amount of currency for settlement at a predetermined exchange rate and a determined value date in the future. A forward contract is suitable for businesses, especially when they want to protect against fluctuations. It is also helpful for budgeting and money management. For instance, when you fix prices in advance, you can budget and plan easily while knowing their costs.

3. Leverage from Online Transfers

Online transfers provide effective and easier cash management, allowing you to increase payment visibility. Using online transfers enables you to set cost-effective invoices with overseas vendors. For example, Zed Network , a payment orchestration platform focused on cross border payments and foreign exchange (FX), offers an online FX platform, allowing business owners to manage global payments online effectively and easily at any time with the lowest costs and the most competitive FX rates.

4. Use a Budgeting Tool

Safahi recommends selecting the right budgeting tool that streamlines the currency exchange process and gives you more visibility over exposures. Use a budgeting tool that calculates currency exposures for different invoices automatically.

For instance, you can go to a single platform and evaluate your cross-border cash flows, especially incoming and outgoing cash flows in your home currency. That way, you can make informed decisions and mitigate risks.

5. Settle Invoices in Local Currency

It is crucial to settle invoices with your overseas vendors in the local currency. According to Alan Safahi, one in five suppliers from China adds 3–4% to U.S dollar invoices. The purpose is to cover fluctuations in foreign exchange. When you deal with vendors in their local currency, you can negotiate with them and get a discount.

Final Words

If you want to streamline your currency exchange operations, make sure you implement a solid plan. Don’t worry about where the rates of exchange go because after you determine the rate, it is still suitable for you even if the rate moves down the line. The five tips given above will help you optimize your currency exchange processes and reduce risks.

Originally Posted: https://safahi.com/5-ways-businesses-can-benefit-from-currency-exchange-b3c94b8cb175

Tips for Currency Exchange Investment

Currency Exchange Investment

Alan Safahi, the San Francisco-based startup company Founder and currency exchange expert, says that currency trading could be a stable and profitable way to improve your investment portfolio as long as you do your homework and hedge against volatility.

If you don’t have a thorough knowledge of global politics, macroeconomic, and geo-economics, however,  it is better for you to avoid doing currency exchange investing, according to Safahi who manages Safahi Global Advisors.

If you want to start a currency exchange business and earn profits, make sure you learn ways to create an investment strategy. Here are five beginner tips for a currency exchange investment.

1. Focus on Basics of Currency Investment

People trade different currencies on the forex market every day. The forex market operates between traders who are represented by brokers. Although currency exchange investment through forex is the best way, you can also do this by purchasing ETFs and investing in corporations.

Bear in mind that people trade currencies in “currency pairs.” The pair includes a “base currency” and a “counter currency.” The counter currency helps determine the base currency value. These currencies can appreciate or depreciate separately or together, meaning you have to monitor them closely.

2. Hire an Exchange Broker

According to Alan Safahi of Orinda, CA, beginners should hire an exchange broker or service to get started in the forex market. Professional service or broker has all the necessary knowledge and experience in forex trading.

A broker keeps an eye on the market and knows how to streamline the operations for profit. Many beginner investors find it challenging to trade currencies, but they can hire or use an authorized broker to safeguard their investment capitals.

3. Invest in Stable Currencies

The U.S Dollar, the Swiss Franc, the Swedish Krona, the Japanese Yen, and the British Pound Sterling are some of the most popular currencies for beginners to make investments. Safahi says that these are stable currencies with lower fluctuation risks, meaning beginners can earn good profits by investing in these stable currencies.

Moreover, as a beginner, you can also invest in the Singapore Dollar, the Australian Dollar, and the Norwegian Krone. Although these are stable currencies, the forex market is unpredictable, meaning anything can happen at any time.

Therefore, Safahi recommends looking at the market conditions of the time before making investments. A currency that is stable today can experience drastic changes within a matter of seconds. So, you have to be very careful and consult experts to keep things optimized.

4. Consider Various Market Factors

Before making a currency exchange investment, Safahi says it is wise to consider a few factors, evaluate them, and make an informed decision based on the results. Some of the critical factors you should consider are:

  • A strong GDP
  • Low Inflation
  • Low unemployment rate
    • High economic activities

These are key indicators that show the currency is stable enough, and making investments in it will help you earn profits.

5. Discover Opportunities

Although the forex market is full of opportunities, Alan Safahi, an entrepreneur, says that beginners should focus on discovering undeveloped and underdeveloped aspects of a nation’s economy. Alan Safahi advises that economic innovations, oil-&-gas discoveries, small business investments, and infrastructure development are indicators of a growing currency value.

Moreover, you must examine currencies that have gained value for the last couple of years. Once you have identified and analyzed these currencies, determine factors or aspects that led to the momentum or growth of the currency. Unlike other traders, if you focus on these underdeveloped aspects of a country’s economy, you can find excellent opportunities and make profits.

Final Words

According to Alan Safahi, a professional currency trader has an in-depth knowledge of countries, geopolitics, geo-economics, and socioeconomics. Beginners should explore the concepts of nationalization, sovereign defaults, corruption, GDP levels, employment rates, inflation levels, and governmental instability. Changes in these factors are directly proportional to fluctuation in currency stocks.

Originally Posted: https://www.allperfectstories.com/currency-exchange-investment

Trading Strategies during Covid-19

Although there are many trading strategies, not all of them are helpful during the Covid-19 pandemic. Alan Safahi, a leading entrepreneur, advisor, and San Francisco-based startup founder, says that businesses or individuals must choose a strategy that suits their personality type, risk tolerance, and available time. In this post, we will talk about five effective trading strategies during Covid-19. Read on!

1. Scalping:

Scalping is an effective short-term trading strategy for individuals and businesses. According to Alan Safahi of Orinda, CA it involves taking multiple profits of smaller sizes on trading positions within a short period.

Scalpers typically enter and exit training within a matter of seconds or minutes, meaning they need quick reaction times. If you choose this strategy, make sure you monitor price charges to predict future exchange rates and their movements.

2. Day Trading:

Day trading is an effective strategy for traders during the Covid-19 pandemic. It is a short-term strategy followed by traders during a specific trading session. According to Safahi, day traders usually avoid taking overnight positions, meaning they close out their traders each day. The purpose is to decrease exposure to the trading market movements.

Moreover, you must use trading plans based on short-term charts and their technical analysis to know the intraday price action. Focus on the breakout trading because Safahi’s research shows that it is the most popular one during Covid-19.

3. Momentum Trading:

Momentum trading, also known as swing trading, enables you to plan a medium-term strategy to identify, examine, and evaluate more market moves. If you want successful momentum trading, make sure you trade both with major trends and against them, especially when the market is correcting. Thus, you will hold overnight positions.

The relative strength index (RSI), moving average convergence divergence (MACD), and histogram are commonly used indicators in momentum trading. Moreover, you should start with at least $10,000. You may end up risking each trade if you fall below $10,000.

4. Trend Trading:

Unlike other trading strategies, trend trading is a long-term strategy used in the forex market. It involves focusing on the market’s directional movement or prevailing trends for a particular currency pair. Safahi recommends traders to purchase on pullbacks in up trends and sell on rallies on downtrends.

Once you have taken a position in the trend direction, hold onto it until the trend starts reversing or the market reaches its objective. During Covid-19, Safahi suggests traders focus on more technical analysis indicators, such as the average directional movement indicator (ADX). However, you can also focus on moving averages to smooth out the price action. That way, you can identify trends and watch for crossovers in the market.

5. News Trading:

You can use news trading strategies if you have enough budget and a solid plan for risk management. Bear in mind that news trading strategies are not suitable for beginners during the Covid-19 pandemic.

News trading strategies are usually based on fundamental and technical analysis and benefit from volatility seen in the market quickly after news releases. Alan Safahi recommends monitoring economic calendars for data releases and watching the forex market closely to identify support and resistance levels before the event.

The purpose is to analyze the results and react quickly after the event. Furthermore, you have to maintain discipline during currency positions management to streamline your strategy and take profits orders in the forex market.

Final Words

The Covid-19 pandemic has hit hard the entire world in terms of health, business, and economy. The unpredictable lockdowns, surging cases, and disrupted supply chains have significantly affected the business world, including trading markets. However, the five strategies given above can help you thrive in the Covid-19 era trading if you use them correctly. Until Next Time!

Originally Posted: https://vocal.media/trader/5-effective-trading-strategies-during-covid-19

What investors look for Pitch Deck?

investors

“Simply put, what investors are looking for in a pitch deck is a great presentation that clearly outlines a pain the point that exists today and demonstrates the Founder(s)’ unique position to solve this pain point at this point in time” says Alan Safahi, San Francisco entrepreneur and 6X startup founder and Principal at Safahi Global Advisors.

According to this definition, a presentation can become the most important document for your company. It is through this presentation that you will be able to captivate your audience and collect the financing you require to carry out your project.

In this article, we will be sharing some essential tips for you to prepare a winning presentation, which answers all the concerns of investors.

The tonality of your presentation

Before starting to prepare your presentation, you must define what tone you want to use in it. This will depend on what you want to convey to investors.

Add creativity to the presentation, and prevent it from being boring or unattractive. The best combination you can use is your creativity with high-quality content.

A high-level summary

Include a high-level summary. Two slides should be enough to start your presentation, highlighting the essence of your business.

You must include all the aspects that you want to make known to potential investors.

Explain the problem that your product will solve

In these slides you must capture the opportunity that your business represents, highlighting what are the needs or problems that it will cover.

You must make it clear what is the lack of the market that your product will be able to satisfy.

For this, you can use two to four slides, depending on the complexity of your project and the level of demand of your audience.

Describe your product in detail

According to Safahi, it is vitally important that you include a detailed explanation of your product in your launch presentation.

You must delve into what differentiates your product, why it is better than the competition that may exist, and how it will guarantee market satisfaction. Make sure you cover everything about your product including the proposed product/market fit and the answer to the question “Why Now?”.

Present your Marketing strategy

Once you have the audience captivated with your product proposal, you must present an effective marketing strategy.

This strategy will depend on the phase in which your business is, but you must demonstrate to your potential investors that you have objectively devised a plan to earn a space in the market.

Describe your team

One aspect that investors take into account is the team you have assembled to get the job done. Remember that they would be investing not just in your idea, but also in your effort and of course in your team.

Use some slides to introduce your team and show that it is made up of people committed to the company. You should also take the opportunity to highlight their strengths and the past relationships with you and each other Founders and team members so show a history of a team that has successfully worked together and gets along with each other.

Well-formulated financial projections

According to the criteria of the San Francisco advisor and 6X startup founder Safahi, this point is highly anticipated by investors.

You must clearly describe what the projections are for both income and costs of your company. Make sure to clarify how you will use the money you will raise.

These projections must be professionally and realistically calculated. Clear and objective information at this point is highly appreciated by investors.

Originally Posted: https://www.allperfectstories.com/investors-look-pitch-deck/

Do’s and Don’ts of Raising Capital

According to San Francisco entrepreneur and startup advisor Alan Safahi, the process of raising capital for your startup can be somewhat intimidating. Especially if it’s your first time doing it. However, to achieve what you want you must learn, strive and fight until you accomplish your goals.

To give you a little help in the phase of getting investors for your company, we will share some tips. On the one hand, we will be detailing the things you must do; and on the other hand, we will be telling you what you should avoid at all costs when searching for investors.

What you must do to raise capital

San Francisco advisor and Alan Safahi, who is a 6X startup founder with vast experience in fundraising in Silicon Valley, Los Angeles and Toronto, shares his experience indicating what you should do:

You must prepare properly

Raising funds for your business requires primarily mental preparation. It is very important that you be realistic and set expectations within what is objectively possible.

You must also be prepared for rejection, and to take this as a learning opportunity rather than defeat. The right investors for sure will see the potential of your venture, so don’t despair.

Focus on generating traction

Something that attracts investors is the popularity that you have gained in the market with your product or service prototype. So it’s a good idea to focus part of your effort on building a potential customer base from the start.

This can show investors the potential your company has, and all that you can achieve with the appropriate capital.

Lean on good advisors

Having the support and guidance of a good advisor is of great advantage for you. Look for professionals who believe in your endeavor, and stay in touch with them whenever possible.

Great advisors can provide you with unrivaled business guidance, and invaluable guidance on how to approach investors.

Define a good profile on financing platforms

When registering your profile in the different financing platforms, you must define your profile completely and perfectly.

Remember that investors will not only see your business proposal, they will also see who they will partner with.

Make sure to record all your experience, you should even record other ventures that have not been successful. All experience is valid.

What to avoid while raising capital

Alan Safahi, Founder and Principle at Safahi Global Advisors, details the things to avoid during the capital raising process.

Don’t raise more money than you really need

You may want to take the opportunity to raise a little more money, as financial insurance. But you should never abuse this.

You can get a little more capital to fix the situation, in case something doesn’t go according to plan, but you shouldn’t go overboard in this regard. Ultimately, your success depends on what you do with the money you have, and not how much money you have.

Don’t Talk to the wrong investors for your project

Don’t waste your time with investors who are not used to investing in projects like yours, or in companies that are in the phase you are in.

If they do not know the area, you will have to spend a lot of time explaining the details. That time you can invest in something more beneficial for you.

Don’t Meet with investors who have invested in the competition

Another thing you should avoid is talking about or presenting your project to investors who have invested in a company similar to yours. It doesn’t make any sense for you to talk to the people who have funded your competition.

You must avoid any type of conflict of interest.

Don’t stop studying investors before meeting with them

Before meeting with any investor, you should have studied them. You should know if this is the type of investor who is interested in companies like yours, and if he or she has experience in your area of development.

If possible, talk to other entrepreneurs who have received capital from these investors to find out what it is like to work with them.

Originally Posted: https://vocal.media/journal/do-s-and-don-ts-of-raising-capital