Putting Up an Image of Success With Every Business For Sale

Lots of money gets invested into a business, and when putting it up for sale, good managerial skills are required to really make profit from the transaction. With any business for sale, the risk is of not getting less money than you have invested into it. Therefore, the process requires a lot of planning, up to one year in advance. There should be an inventory of all the assets, and the financial statements should be analyzed and verified by professionals.The transfer of a business for sale should further involve a finality in certain contracts, particularly when they involve equipment leases or returns. In case there are special agreements with business partners, the manager should check whether the contracts can be continued with the novel owner or not. A business for sale depends on transparency in all departments, with the mention that the corporation guidelines have to be passed on to the company that takes over.Sellers have all the intention of putting up an image of success with every business for sale. But the legitimate question will come: why sell? All sorts of reasons can determine people to sell their business, and it doesn’t have to be associated with financial problems necessarily. Most transactions take place at corporate level and the main objective of such business moves is to increase productivity and money efficiency. Otherwise, a smaller business for sale may be more expensive to buy than to build.Entrepreneurship has become a relevant occupation in our times. Statistics indicate that more and more people choose forms of self-employment instead of working for corporations. Therefore, owning a business could make a difference in terms of financial security. Purchasing a business for sale that has a good operational level makes it easier to get loans from financial institutions. The lending process goes a lot more smoothly in such cases than it would with a business you build from scratch.Among the advantages that come with a business for sale, we should also mention the higher rate for success. In normal conditions, a business that you start on your own becomes profitable only within two years after launch. Pros and cons can be found when it comes to a business for sale as well as to a start up. It all depends on what business you want to buy, what money you have to invest and how deep a financial analysis you can make to decide that the deal is good and profitable.

C-NCAP Certification for the Chinese Automotive Industry

The constant media squabble over C-NCAP (China New Car Assessment Program) doesn’t annoy Mr Zhao Hang at all. As the Chief Director of China Automotive Technology Research Centre (CATARC), Zhao has paid a great deal of efforts to develop this program, a vehicle crash test known as “Chinese new car safety evaluation standard”. “Safety, environmental friendliness and energy saving, we need to have them all,” he said.Big Brother of the automotive industryCATARC was originally a research institute directly belonged to government departments, but now it has become a state-owned enterprise to make its own decisions. Apart from assisting in setting automotive industry policies, CATARC also conducts research in a few core automotive technologies, such as partnering with Tianjin FAW Xiali Motor, Hafei Automobile Group and Yunnan Hongta Group to develop alternative energy cars.”For every aspect of China’s automotive industry, we all have a corresponding service institution. This includes pre-production tasks such as project establishment, factory site selection and factory construction planning, and production related processes such as auto products, standards, information, testing, certification, quality system establishment and staff training. We also get involved in market establishment, second-hand car market, automotive finance, car rental and vehicle scrap recycling,” said Zhao.The C-NCAPAlthough CATARC has such a wide-ranging function, most people currently are interested in its C-NCAP crash test. This controversial test was launched two years ago, and there have been many supporters as well as critics. Controversy is actually what Zhao has hoped for, and he even doesn’t mind posting negative media comments onto CATARC’s official website. The fact that many automotive companies are interested in C-NCAP and asking for trial tests, has demonstrated that C-NCAP results do have some market merit.NCAP, or New Car Assessment Program, originated from the US in 1970s, and it became further recognised in developed countries such as Japan, Europe and Australia in the 90s. a common feature of NCAP is that all the test cars have to be bought from the market, ie, assessable by ordinary consumers. It is an independent test for the benefit of consumers, without the intervention from automotive producers.”The automotive industry in China is big, but few people really understand cars. Common criteria such as engine displacement, inside space and door numbers don’t really matter, what’s important is how safe when you are sitting in the car.” Zhao suggested that the creation of C-NCAP is to provide star ratings on safety, so that there can be a standard for consumers to choose cars. The chief purpose of conducting C-NCAP tests is to prompt vehicle producers to upgrade their technologies and improve car safety.”C-NCAP is a new car assessment program, not just a new car SAFETY assessment program. We do have to go through crash tests initially, but then we add up other results to establish a systematic evaluation standard for new cars, including safety, displacement and oil consumption tests.” Zhao said that as China is a large energy user with insufficient energy supply, and for the environmental consideration as well, it is necessary to conduct displacement and oil consumption tests in the Program.Industry recognitionC-NCAP can become a guideline for Chinese automotive manufacturers, said Zhao. “Many manufacturers are now designing products for the next 5 or 10 years by referring to C-NCAP. For example, once fuel consumption limits of passenger cars are given, product designers have to follow these limits. In addition, C-NCAP’s analytical results, which are based on existing road and traffic accident statistics, will also serve for future standards setting, so this could also be guidance for manufacturers.”A cooperative deal with PICC (People’s Insurance Company of China), China’s largest property insurer, was another successful initiative by CATARC. Last year, a vehicle safety crash test laboratory sponsored by PICC was opened, and PICC had also provided US$2 million to C-NCAP as crash test funds. For an independent assessment institution like CATARC, its cooperation partners have to be without vested interests, so the country’s number 1 insurer could be an ideal partner.Despite being an incorporated entity, CATARC is not really run like a company, as many of its projects are non-for-profit in nature. At the same time it still has to pay for its own operating expenses. The government has set a limit on CATARC’s profits, whose excessive components have to be retained for future projects or public causes. So the cooperation with PICC did give CATARC some funding relief.What kind of vehicle certification system does China need?Zhao said that there are significant differences between China’s certification system and those internationally, in terms of methodologies and organisational management. “China has not yet had a truly formal certification system. The existing rules can only be called ‘access system’, which only determines whether a particular car model is allowed to enter the market. While in developed countries, government certifications are built around the three major criteria, namely safety, environmental friendliness and energy saving.”Take the example of safety. China has more than 100,000 traffic death tolls and about 1 million injuries. There are only about 200 Chinese cities with more than 1 million population each, so the casualty number is equivalent to eliminating a medium Chinese city every year. Therefore it is an urgent task for regulators to solve vehicle safety problems and improve auto product qualities.CATARC plans and drafts national vehicle standards in China. Zhao suggested that China do have good and enough standards, but not enough when it comes to execution. And there are rules to follow, but not followed strictly. “Market competition cannot be in the absence of monitoring. Low price competition has now become a major problem in China’s automotive industry, as many manufacturers try to reduce costs by jerry-building. Such vicious competition is harmful to the industry. Many vehicle models can pass quality certification when they are in the factory, but not the case when they go to the outside market. If a certified product is not the one sold to consumers, what’s the use of certification?” said Zhao.”Therefore, it is not enough for the automotive industry to just have an access system, and too many certification programs will not be helpful, either. We need to strictly monitor basic aspects, such as vehicle safety, environmental friendliness and energy saving, but leave other tasks to the market and consumers. This could be a really effective and realistic method for the industry,” Zhao concluded.For more information on Chinese businesses, please visit www.chinabizintel.com

Crypto Currency Vs Fiat Currency

Crypto currency vs. Fiat currency

Are you aware of the fiat currencies and the crypto currencies? They both are currencies in one form or the other and are open for public use across the world. But they are both different and distinct in their own ways. There is always one group that favors the use of cryptos, while the other has a soft corner for the fiat currencies.

In cashless society- crypto money play a huge role

If you have a look at the market of the 1970s and 1980s, you will find that the cash played the dominant role. But, with the change in the technology, electronic transactions have become the usual norm. Today, more and more people are influenced in becoming the cashless society. With the progress towards the cashless society, cryptocurrencies have a big role to play.

Crypto currency and fiat currency are always at loggerheads

Cryptocurrency and fiat currency are popular types of digital currency, especially when it is about an online transaction. They both are currencies currently in use in the market but have some differences in them. There is a hell lot of hypes that you will hear on a daily basis comparing the crypto money and the fiat money. This article will highlight the difference between the two in a more comprehensive and clear manner.

Differentiating in what the currencies stand for

Before going for the difference between the two, you must understand what do they stand for and how are they are defined.

The fiat currency is a legal tender that has the support of the central government, and it operates in the physical form. For instance, US dollars, British Pounds, Euro etc. On the other hand, the crypto currency is a non-legal tender, and doesn’t have any backup from the central government or bank.
Hence, the difference between crypto currency and fiat currency is noted as follows:

• Crypto-currencies are decentralized and global in nature. There are no one entity or government that controls the currency with their laws and regulations. The Fiat currency is centralized, under the control of the laws and regulations of the banks and government.

• Crypto-currencies have their existence only in the digital domain. On the other hand, you will find that the fiat currencies have a tangible and physical existence.

• There is a limited supply of crypto-currencies with a maximum set of them getting supplied in the market. Whereas, the fiat money has an unlimited supply as the government and bank are entitled to produce coins and paper money whenever the situation is required.

• The Bitcoin and other crypto type currencies are created by the computers, while the fiat currencies are issued by the local government and the banks.

• Cryptocurrencies are presented as the public and private code pieces. On the other hand, the fiat currencies are presented in the form of coins and paper money.

• The value of the crypto currencies is not recognized by the supply and demand of the market. Whereas, the fiat currency value is determined by the market regulations of supply and demand.

The different types of crypto and fiat currencies

In the last one decade, the popularity of crypto type currencies has emerged as a huge success. It was in 2009, when Bitcoin was first introduced, and years after several other types of crypto currencies have emerged. Starting from Litecoin. Dogecoin, Ripple to the Dcash and Zcash, there is a plethora of them. On the other hand, the fiat currency has a rich and ancient roots, with the Great British Pound, that dates back to 775 AD. It is considered as the oldest currency in the world that is still in use.

The differences in the anonymity between the two currencies

When you are using the fiat currencies, you need to undergo a user identification or verification process. You are asked to upload a recent picture of yourself and some of the required documents to be issued as per the public authorities. You don’t need to undergo any of the required processes with the crypto currencies. Though your personal information and confidential details don’t get public, but all your transactions are recorded and tracked in both the fiat and the crypto currencies.

Fiat currency vs crypto currency: transparency level

• The transparency level with the crypto type currencies are considered to be more. This is because the revenue streams are displayed in a public chain. Everyone can witness their own and others’ transactions.

• The fiat or govt. currencies are not transparent, as there are not public chains to see the revenue streams of the people.

A comparative historical roots

If you compare the crypto money with that of its counterpart, fiat or government currency, you will find that their existence and creation brings the difference. The Fiat or government currency, dates back its existence as early as 775 AD with the introduction of the Great British Pound. This is why fiat type currency is easily accepted by the people all over.

On the other hand, the crypto coin was perhaps first introduced only a decade ago, with the introduction of Bitcoin in 2009. The challenge that the Bitcoin and other crypto currencies face is catching up with the immense popularity and increasing fan base of the fiat currency. Crypto currency, is no doubt gaining importance and popularity in the economic market, but it has still not been accepted widely in the society as the fiat currency.

A comparative history of the two currencies:

• It was in the 11th century, when the Chinese Song dynasty was perhaps the first one to issue the paper money. It was not allowed to exchange with valuables like gold and silver or silk.

• There were Tally sticks that were introduced as a fiat or government currency. 1100 Tally sticks were introduced as a combat for the shortages in gold.

• 1971, was the year, when the fiat currency received a worldwide recognition. President Nixon introduced it in order to eliminate the dollar pegging system to gold.

• It was in 1998, when the idea of an anonymous electronic cash system emerged by Wei Dai. Bitgold-the very first crypto currency was created by Nick Szabo, but it didn’t receive as much attention as Bitcoin.

• In 2009, Bitcoin was introduced in the market, that became the first crypto currency that was accepted across the globe. In 2011 and after, a series of several other crypto currencies were introduced. Some of the popular ones include, Litecoin, Dogecoin, Ethereum, Ripple, Zcash, Dash and so on.

The traits of both the currencies

The potential of the crypto type currencies and fiat currencies, accessing their traits is important. You will find that in some of the criteria, Bitcoin and other crypto currency is superior than the fiat or government currency, and in some cases, the latter surpasses. It is absolutely your call to choose the type of currency (crypto type currency or fiat type currency) based on your personal needs and requirements.

Let us compare their traits with respect to certain factors.

• Both the crypto coins and fiat type currencies are interchangeable in nature.

• As per the portability is concerned both the currencies secure more or less the same position.

• With respect to the non consumable criteria, crypto currency and fiat type currency have the equal status.

• Crypto type currencies have high durability as compared to the fiat-currencies that have moderate level of durability.

• Both the crypto or virtual currencies and the fiat or government currencies ensure secure and safeguarded transactions and exchange.

• Crypto or digital currencies are highly divisible in nature. On the other hand, the fiat type currencies are moderately divisible.

• In terms of the transaction process, the crypto currencies are easy and hassle free. Whereas, on the other hand, the traction process associated with the fiat currencies are easy, but not like the cryptos.

• The crypto based currencies are decentralized and global in nature, unlike the fiat currencies that are centralized and functions under the laws and regulations of the government.

• The crypto based currencies have high scarcity, where as, the fiat currencies are unlimited as the government can issue coins and paper money whenever there is a need.

• The crypto based currencies are based on mathematical algorithms, and are programmable. The fiat currencies are not at all programmable.

• The fiat currencies are sovereign in nature, while the crypto currencies are not.

The process of the functioning of the currencies

You can find the significant differences between the crypto or digital currencies and the fiat currencies with the way they both operate and the transaction process that take place. They are contrasting in nature. The transfer of money using the Bitcoin is very quick, and you absolutely don’t need any third party association.

On the other hand, if you are involved with the money exchange using Fiat type currency, a mobile wallet is in use. You can exchange an amount of e-money that gets transferred into the equal e-value amount. Both the fiat and the crypto currencies enable you to purchase everything that you desire. But the processes involved are absolutely distinct from each other.

Depending on the things you purchase, you will find that one currency form is better than the other. This is absolutely your choice.

Is Bitcoin, a crypto currency better than the fiat-currency?

The long term benefits and the capability of the Bitcoins is still not established. But it has been predicted by the crypto currency gurus and experts, that they will go a long way, especially revolutionizing the way the online transactions are done. In the current market, the Bitcoin is mainly included in the online casinos and the gambling, but it is not limited to it.

Furthermore, when you compare the fiat currencies, the Bitcoin allows you to seize the power and authority from the banks and the government since it is not controlled. The cryptography based currency has the capability to create or come up with the free market capitals. Fiat currencies are affected by the inflation and the changes in the market, unlike the crypto based currencies. Such aspects make individuals believe that cryptograph based currencies will soon take over the mainstream currencies and bring a transformation in the way the money is used.

Why is Bitcoins considered to be a better aspect than the fiat type currencies?

• Bitcoin gives you the opportunity to re-create a free market capitalism.

• The power of controlling the money is absolutely with the individuals, and not with the banks like the fiat type currencies.

• When there is an inflation, the Bitcoin is not affected. But the Fiat type currency will be easier to lose and get affected by it.

• The Bitcoin currency is easy easier to exchange and transfer as compared to the fiat or government currencies.

• The transaction fees involved with the Bitcoin are way cheaper and easily affordable.

Crypto currencies seem to be a favorable option among the people

The fiat type currencies are the centralized and legal way of exchanging money. But, the crypto currencies have acquired immense popularity in the past few years. There will never be anyone who would act as a middle man, like the case with the banks. Moreover, the cryptos are way cheaper and less expensive that the conventional fiat currencies.

Send money anywhere directly without waiting for the bank’s approval

You can send money to anyone in the world directly, and it is super fast. The money gets cleared within a few minutes time. You don’t have to wait for the traditional clearing and verification processes of the banking systems, which might take up to several days to get a clearance. Since it is decentralized and doesn’t come under the law and regulations of the government, nobody has any power to do anything with your account.

The blockchain technology has a very big role to play

Thanks to the crypto currencies, that gives us the power and the authority to become our very own bank, and take control over our finances. It is because of the blockchain technology that offers a higher level of sophistication while dealing with the finances. In fact, there are some mainstream financial industries that have started incorporating the idea of the technology.