Financial Consultants

Archive for February, 2009

As a career, finance is a popular choice. The pay is good and there is a wide range of career choices, from accounting to banking. There are a lot of options for those wishing to enter into this industry, and also a lot of expectations. An understanding of business is important, but what else do you need to secure a great job in Finance?

Jobs in finance are open to all graduates, not just those studying maths or finance. A degree in any subject gives graduates skills of logical thought, analysis, presentation and communication skills. Indeed, many of financial institution’s graduate training schemes will be heavily populated with arts graduates. They often possess communication or presentation skills which surpass those held my finance graduates.

Even graduates in Finance have a lot to learn before they can apply what they learnt at school to real market models. Many academics have misconceptions about the finance world, and don’t understand how real models work. For this reason some banks prefer to take on less educated trainees so they can teach from scratch.

Of course a basic level of numeracy and programming can be sought after in the Finance sector, but even a GCSE or A level in Maths can increase your chances of securing a position.

Other skills which you may want to mention and demonstrate on your CV are organisational skills, oral and written communication skills, teamwork, problem solving, business knowledge, flexibility, leadership qualities, computer literacy and time management.

Doing work experience or an internship at a financial institution is a great idea. Showing any kind of interest the industry looks favourable, as well as anything you might learn when you’re there.

Get to know the company and the industry you are attempting to work in. Read business and finance publications or websites, and research the firm for which you are applying. It will make you more employable in the first place, and aid you greatly when you actually start.

The most important part of any successful career in finance is an intuition in business, which no degree, financial or otherwise will equip you for. Experience is second-to-none.

Once you get a job in finance, the general wisdom says stick with it! Short innings at companies look bad on your CV, and even if you’re not completely satisfied with your initial role at a company, there is a lot to learn and many career options if you stay on.

Not only should you actively be searching for a new job in accounting by searching and applying to opportunities you come across but you must also facilitate the headhunting process by following some of these simple rules.

Explain what you do

When a recruiter calls you about a potential accounting job opportunity, you must realise that they may not know exactly what you do, whom you currently work for and all the information they require in order to place you. It is important to tell them about all your skills and experiences you have and follow this up by sending an up-to-date CV to them.

Speak to the caller

Try to arrange a time when it is easier for you to speak to the caller, especially if they have called you at work and it is slightly awkward. They will be aware that you will probably be at work around your colleagues so will accept short answers where they will ask you questions and you can simply answer with ‘yes’ or ‘no’.

One contact

Always stick to dealing with one contact from the headhunting firm or agency. You do not want to cause arguments and problems internally by being put forward to an accounting job by more than one person in the same company. At least with one person, they will get to know you in more detail and work with you thoroughly to help find you a new accounting job.

Keep in touch

It is important that you keep in constant communication with the recruiter so you know where you stand with them. The more communication you have with them, the more likely you will be top of their list to help.

Keep your CV updated

Ensure your CV is keep updated on any of the job boards you have it on. By keeping it fresh, you will be more attractive to the recruiter and increase your chances of being headhunted for the accounting job you want.

It is important to try to be as friendly and communicative to the headhunter as possible to increase your chances of finding a new accounting job. By helping the recruiter, you will make their job easier.

Raising business finance can often be one of the most challenging things an entrepreneur has to do. A Silicon Valley entrepreneur was recently quoted as saying he believes an entrepreneur should pitch 30 venture capital firms; they should expect to get 3 offers; and then they should go and negotiate further before picking the best. This is a gruelling process if you decide to follow it, with a 90% failure rate!

You should take on board the comments of those that knock you back, but you shouldn’t assume that everyone will feel the same about your idea and your business plan. Obviously you have to believe in your idea, but it is also possible that you will have to adapt your business plan to cater for investor appetite, market dynamics and / or a range of other factors.

Following are some of the ways that you could finance your business, and get your plan off to a flying start.

Loans

Raising money from a bank is hard when you are getting started. This is especially the case if you have not injected a decent amount of equity. Other factors such as experience and the competence of management will also play a part into how safe the bank considers its investment. If the banks refuse, consider approaching family and friends to see if they are able to offer a loan – although there are many downsides to this approach, it’s sometimes the only way to get your business plan moving forwards.

It’s definitely easier to get a loan when your company has a stronger balance sheet. Bankers will often talk about the leverage that a business has. This refers to the ratio of equity to loans that your company uses to finance their business. The lower the ratio, the better your creditworthiness, and the more likely a banker will be to offer a decent loan at a better interest rate.

When you leverage up your business more, you are more likely to be able to increase earnings per share, however you also make your business less stable. Your mind may be torn between equity dilution, growth and stability. Keep in mind, slow and steady doesn’t always win the race. Entrepreneurialism is all about accepting a degree of measured risk; you have to decide how much you’re willing to take to reach your goals.

Equity

It’s sometimes easier to raise equity finance, as a small business, than it is to go to the bank. This is especially the case if you will be investing in intangibles, or an IP-heavy business. Don’t be scared to hand over a percentage of your business if you believe that it will enable you to grow that much faster.

Although there are investors who are willing to look at companies in all sectors and at all stages in their growth cycle, you’re more likely to get a favourable valuation if:

You have a unique idea, a protected idea, or you are likely to benefit from a first movers advantage. Your drive, passion, flair and expertise are all extremely important factors too.

The more progress you have shown, in terms of sales and product development, the more favourable your potential investors will be towards your proposal. Anybody can make a business plan but if you already starting to turn it into reality then you will show that you have what it takes to grow the business further.

Financials are important too. The stronger the balance sheet, the greater the cash flow, the more profitable your company is now – the better. However, earning potential will also play a role in the investors mind.

You have to be prepared for getting plenty of rejection if you want to succeed. If you are determined and persevere long enough you will find an investor.