Tag Archives: costs

President, Congress pass bill to allow venture capital funding via crowd sourcing

Earlier this month, President Obama sign the JOBS bill into law with strong bipartisan support, and no this isn’t the one you’re thinking of. This one is designed specifically for funding start-ups with a particular focus on crowd funding (i.e. Kickstarter).

Explained by author and professor, Jeff Jarvis:

The JOBS bill being signed by President Obama today is critical to the emergence and growth of the next generation of industries as ecosystems.

Those ecosystems are made up of three layers: platforms, entrepreneurial ventures, and networks.

Platforms (Google, Amazon, Salesforce, Facebook, Kickstarter, Federal Express, Foxconn), which make it possible for entrepreneurial ventures to be built at lower cost with less capital and reduced risk at greater speed. To provide the critical mass that large corporations used to provide — to, for example, sell advertising at scale or acquire distribution or acquire goods or services at volume — sometimes these ventures need to band together in networks (Glam, YouTube, Etsy, eBay).

The bill supports this flourishing start-up trend by updating some outdated laws, from the 1930s, and correcting some from the Sarbanes-Oxley Act of 2002.

Of interest to us, the regular people:

  • Entrepreneurs can raise up to $1 million per year through those approved crowd funding channels.
  • Investors with incomes of less than $100K will be limited to 5 percent, or $2K, investments.
  • Those who make over $100K/year will be limited at 10 percent, or $10K.

Previously, one could not sell equity through crowd funding and only registered investors with $100,000 could fund a company. Now, with the crowd sourcing provision anyone can get in on the action.

This is great for the industry and those with a nose for investing, but do be wary. Internet scammers and unskilled entrepreneurs will soon be asking for your money to fund the next Google.

 

Learn more about the billJumpstart Our Business Start-ups (JOBS) Act

 

// Photo – Guano

One million robots in three years – Foxconn’s Robot Kingdom

The largest private employer in China, Foxconn with over 1 million employees, is finally facing stiff labor costs. This is great news for the U.S. manufacturing sector who may be able to lure some work back to the United States.

It will be interesting to see how this affects the global market, but for now the advantage is all for the robots:

Taiwanese technology giant Foxconn will replace some of its workers with 1 million robots in three years to cut rising labor expenses and improve efficiency, said Terry Gou, founder and chairman of the company, late Friday.

The robots will be used to do simple and routine work such as spraying, welding and assembling which are now mainly conducted by workers, said Gou at a workers’ dance party Friday night.

Foxconn, the world’s largest maker of computer components which assembles products for Apple, Sony and Nokia.

via Xinhua News Agency

A quote from Foxconn reveals that the issue of rising labor costs for the company are just going to get worse:

…talked about moving its human workers “higher up the value chain” and into sexy fields such as research.

via The Economist

Best Buy to close 50 stores in the U.S. and 11 in the U.K.

Selling consumer electronics isn’t as easy as it used to be for Best Buy. The big-box retailer is closing 50 stores and compensating employees based on customer service after its fiscal fourth-quarter sales fell short of expectations.

The company today reported a fiscal fourth-quarter net loss of $1.7 billion, on revenue of $16.63 billion, up 3 percent from a year ago.

Best Buy’s problem: Amazon. Best Buy has been trying to grow its e-commerce business to compete better, but the big-box approach to selling consumer electronics isn’t what it used to be. That reality has Best Buy thinking small.

The company outlined the following moves:

  • It will cut $800 million in costs by fiscal 2015.
  • Close 50 big-box stores this fiscal year.
  • Open 100 Best Buy Mobile and small stores this year.
  • Boost online revenue by 15 percent.
  • And Best Buy will change its employee compensation model to revolve around customer service and business goals.

“The company is gradually becoming a physical showroom for online retailers,” said Wedbush Securities analyst Michael Pachter.

via c|net – Business Tech

 

The company is also closing 11 stores in the UK, and:

As part of the plan to fix its troubles in Europe, Best Buy says that it will bring its “Wireless World” experience to some of the 2,500 small box mobility stores it currently operates in Europe.

via c|net – The Digital Home

 

// Photos via Kevin Dooley & MJ/TR

How much do you think it costs to travel on the Surfing World Tour?

You make the world tour, have 11 stops around the world and some cash to be made…. so, did ya ever wonder how much it would cost to travel the world tour?

 

Stop 1 – Gold Coast for the Quikkie Pro – roundtrip airfare, food, lodging, transportation: $2000

Stop 2 – LAX to Melbourne for the Rip Curl Pro: $1500

Stop 3 – Rio, Brazil for the Billabong Pro: $1500

Stop 11 – Hawaii for Pipe Masters $1500

 

Total cost – $27,000

 

It’s safe to say, no one is stressed about the costs of travel. Just $27000 to compete…. considering these guys make no less than $77K per year for just showing up and placing =25th, it’s no brainer… they can place last in every event and still show a net profit of 50K …. throw in their endorsements, if any, and they’re all making over a hundred K no matter how bad they surf….

See the cost of all 11 stops on the Surfing World Tour