Monthly Archives: January 2016

How FreedomPop Has Managed To Change The Mobile Phone Market In The USA

FreedomPop is not your traditional mobile phone carrier network. In a recent couple of months, the company has been giving main and traditional MVNO carriers a headache. The company is well-known when matters related to giving away data bundles, text and voice are concerned. The company also offers up sells on extra voice minutes as well as voicemail. Different with other similar companies who buy bulk data and then resell to their customers at a cheap margin, FreedomPop negotiates with data re-sellers and pays for only what its customers use.

In the very recent development, the company has raised not less than $50 million for expansion purposes. The amount is to enable it roll out beyond just the US market and help in launching its international products as well. Among the products is a brand new free WiFi hot spot that it plans to sell at only $49.99 and it will give users access to free data and calls across multiple regions.

Contrary to its earlier similar funding, FreedomPop did not disclose the investor. However, the company CEO said that it is a very large private-equity group and investor. The reason the company does not want to reveal the name as yet is because it is at an advanced stage to integrate the company with another mobile phone services company.

With the latest funding, the company has almost approached the $1 billion valuation mark. In total, the company has been able to bring its total funding to not less than $109 million. The latest investment partner is in plans to integrate the company with other assets in its portfolio. The company CEO says that its expansion in the international market has been very strong and that it plans to improve.

FreedomPop is a wireless mobile phone and internet service company based in Los Angeles, California. The company is phenomenally known for providing wireless voice, data and text services on both Sprint’s and Clearwire’s networks.

So far, the company has been able to expand to the international markets like the UK where it has been received very positively. The company was founded in 2011, and it has made very noticeable steps in its service delivery. It has also managed to launch its line of cheap phones that are compatible with its network. However, the most important thing is the fact that it is nowadays recognized as a main player in the mobile phone industry and one who has managed to turn the market around when it comes to offering low prices.

Unique Strategies for Success

With the emergence of entrepreneurs who are very technologically savvy and well aware of how today’s current technology can impact their business, today’s entrepreneurs are busy using every new strategy they can find in an effort to attract more business their way. However, while this is definitely needed in today’s world, this by itself does not necessarily guarantee success. If there is any entrepreneur who understands this, it’s Brad Reifler. One of the world’s most successful entrepreneurs and investors since the early 1980s, Brad has established himself as one of today’s brightest business minds just from his financial tip articles alone. Having started numerous companies from scratch, he has proven time and time again that while knowing the latest technology is always beneficial, many other things must be done to make a business viable.

Of all the skills Brad possesses, most people would attribute his business success to his thirst for knowledge. Always studying the latest sales strategies and other factors that go into making a business successful, he then takes those strategies that apply to his businesses and makes each one a unique fit for his world. For example, while CEO at Pali Capital in the 1990s, he was focused on developing new sales strategies for his team. After reading about some, he got together with his sales team and went to work making them even more effective. After a few weeks, the sales team put them into action. Needless to say, their results paid off, with Pali reaching an astounding $1 billion in commission income by the time Brad left the company. Proving to the business world that he had what it takes to succeed, Brad has never forgotten the lessons he learned during that experience. As a result, he learned not to be afraid of failure, but rather embrace the challenge and move forward.

One look at Brad’s beautiful New York home and you can see that he’s definitely experienced some success.  Now he’s focusing his efforts with his new conglomerate, Forefront Group.  They have focused on providing new investment opportunities to those that otherwise wouldn’t have them.  Including the middle class, who are previously closed off from making these types of moves.

Kyle Bass Predicts Wall Street Bears For 2016

On a recent episode of “Halftime Report”, Kyle Bass brought a grim outlook for the future of America’s economy to the table. Perhaps it’s only a short future, but considering the general atmosphere of economic decline America has been experiencing recently, the numbers become a bit staggering.

Bass knows that America’s economy is largely involved in China’s economy right now, and he also knows that in China, the banking system is lending in excess of its means. Bass has drawn parallels between the economic crisis in Europe, and the economic crisis in China. He has demonstrated how in both cases, banks have lent in excess of regional countries’ GDPs, facilitating incremental collapse, or at the very least an expanding bubble destined to burst. According to Bass, such bursting bubbles are merely what’s called a “credit cycle”.

Credit isn’t money; it’s like a socially acceptable “IOU”. “My credit is good,” says the rich man; and the poor driver knows by the man’s clothes and bearing that his credit is indeed good. But in China, the rich men have been using that line too much, and they’ve plum transcended their means.

The Gross Domestic Product of China is only about ten trillion a year. Meanwhile, the banks have the country on the line for thirty-five trillion, and surrounding countries have been aggressively lending to China in order to have a controlling stake in her when the dominoes start to fall. But what those countries don’t realize is that when the dominoes fall, they’ll be knocked over as well. Most countries surrounding China have substantial investment in the country, meaning if her economy goes belly up, others will soon follow–including the USA. Bass believes 2016 could see an American economic decline of between ten and twenty percent precisely because of the shenanigans in China.

There’s good reason to believe blogger Bass’ predictions. An Argentine who currently manages hedge funds in Texas, Bass successfully predicted the debt bubble America blew in 2008 would collapse around the housing market, and he hit that nail on the head. He also successfully predicted economic shortages in Japan, and has been able to legally manipulate the stock market through his organization “The Coalition For Affordable Drugs”. The CAD was able to decrease cost on several big-ticket pharmaceuticals, against which Bass short-sold stock, and made a pretty penny.

Bass is also involved with Argentina’s president, socialist Cristina Fernandez de Kirchner, so his motivations in these economic climes are anything but clear. UsefulStooges have done their job reporting Kyle Bass’ gambler investment ways.  What is clear is his acumen in predicting market collapse. So far Bass has a fairly solid track record. Will that record remain solid during 2016? It seems likely, but there’s no real way to predict future outcomes except metered guess work.

Unresolved Challenges Cause Homejoy To File For Bankruptcy

Homejoy Inc. Made the announcement on their website page that they will no longer be in business. The company, that started in 2013, was an online business which customers were able to book home cleaning and other services online to meet their needs. Even though Homejoy was able to raise $38 million in funding from investors such as Google, First Round Capitol, and a list of other investors, they were still not able to make it work.

There are a couple things to blame for the closing of Homejoy. One of those things was a problem regarding the challenges related to revenue. The other problem, which seems to be a big problem for these types of start-up businesses, are worker classification lawsuits. These lawsuits attempt to change contractors into employees, which is some cases can cause up to a 40% increase in labor cost.

However, not all startups in the home cleaning business are not closing their doors. Handy Technologies Inc, which was a competitor of Homejoy, continues to grow. Handy also offers home cleaning services as well as other handyman services such as furniture building. They have booked over 1 million appointments and have raised over $100 million dollars.

Handy services 33 locations in three countries which include the United States, Canada, and Great Britain. Not only can customers looking for cleaning services log into their website for help, but those who are looking for cleaning jobs can also be serviced through Handy. Roughly 80% of Handy’s business comes from repeat business. This plus money from investors will allow Handy to keep growing.

Check out the original article below:

http://blogs.wsj.com/bankruptcy/2015/12/17/home-services-startup-homejoy-files-for-bankruptcy/