Ask an Expert: Business and Finance
Nicole Middendorf, a Wayzata resident and CEO of Plymouth-based Prosperwell Financial, is here to answer your questions about finance, business and economics.
From initial public stock offerings of global social networks to a European Union hanging off an economic cliff, the world of finance and business seems to be making headlines on a daily basis these days.
So how can you protect yourself from geo political dramas while identifying and capitalizing on opportunities to increase your wealth?
In this week's segment of "Ask an Expert," Patch calls on Nicole Middendorf, CEO and LPL Financial Advisor at Prosperwell Financial, to help navigate the complex world of business and answer all your money questions.
Looking for some tips to start a college fund for your child or a pad a retirement nest egg? Looking for answers on how to best position your small business at tax time? Going through or contemplating a divorce but scared about how your savings will be affected?
Middendorf has a wealth of experience in all of the above, as well as many other areas of business and finance.
Nicole's name and face may strike a chord of familiarity. A Wayzata resident, she has appeared on dozens of newscasts and radio segments over the years. She was selected as one of the "25 Women to Watch" by the Business Journal and has received numerous awards from local, state and national business organizations.
Middendorf will be answering your finance questions through May 22. So post your queries in the comments below and check back later to see the answer.
About this column: A weekly column in which you can ask local pros your burning questions. Post your questions in the comments below and check back later to see the answer.
Jay Corn
6:42 am on Wednesday, May 16, 2012
Hi Nicole! I'm wondering why I'm not able to participate in the Facebook IPO. It seems only institutional investors and their very wealthy clients are provided the opportunity to get in on the ground floor and benefit BIG time from the pop on opening day. Why? Follow up: What are your general thoughts on the Facebook stock?
Nicole Middendorf
10:45 pm on Thursday, May 17, 2012
There are only a certain number of shares available and they do generally go to institutional investors. The average retail investor could possibly gain some shares if they have generally a large account with a wirehouse firm and a good relationship with their Financial Advisor. But, do you really want to own the stock? Buy what you know. Buy companies that are making money and profits for that is how their stock can go up.
Clare Kennedy
11:12 am on Wednesday, May 16, 2012
I'm wondering what I should do if I want to start a business. How much cash should I have on hand? How can I prepare to get a loan, other start up logistics?
Nicole Middendorf
10:48 pm on Thursday, May 17, 2012
You want to have a solid business plan and if you are working at a job stay there as long as you possibly can. For, it's generally not a great idea to start a business cold turkey without health insurance, etc. Overall, you want 6-12 months of income set aside in liquid funds in case of an emergency. Starting a business...even more. You need to have money set aside until the business is profitable or that you can start pulling an income from the business. Get a great Financial Advisor, banker, attorney and CPA and they will be able to help get you on the right path. Good luck. Starting a business is alot of work but can be well worth it!
John Clark
11:40 am on Wednesday, May 16, 2012
Hello, I have a partner in my home tutoring business. We're very small and fairly new, and neither of us has a business background. We have a constant dispute about comping tutoring sessions when the customer is not satisfied with the tutor, and we have to switch tutors. What are your thoughts on that?
Nicole Middendorf
10:54 pm on Thursday, May 17, 2012
So, you give away your service for free if the customer is not satisfied? I guess it would depend your arrangement or contract with your clients and how your company is structured. I believe doing the right thing for the long term but I also don't believe in giving away something for nothing. Now, if it was a bad experience or poor service that's different. I would suggest a conference call with your business attorney or coach. Or, even pull your CPA or Financial Advisor in on the discussion.
Phil
8:11 am on Thursday, May 17, 2012
I am contemplating starting a small business to help people and/or small businesses organize costs and expenses using Excel. I have heard that Quicken or QuickBooks is something to consider using. I do not have a business or accounting background, but have spent the last 3 years organize a self-employed relative organize all of their travel and business expenses for tax purposes. Your thoughts (or anyone who reads this post)?
Nicole Middendorf
10:51 pm on Thursday, May 17, 2012
Starting a business is a great idea if you can make it work. Your target market is probably going to be that small business owner that has been around for a bit and needs someone to take over and do their books and pay their bills. I (and most fellow business owners I know) use Quickbooks. You could also work for a company as their bookkeeper.
Troy
8:57 am on Thursday, May 17, 2012
Are you a kaynesian?
James Sanna
9:19 am on Thursday, May 17, 2012
Do you mean a follower of J.M. Keynes's theories of macroeconomics? (http://en.wikipedia.org/wiki/Keynesian_economics)
Phil
9:36 am on Thursday, May 17, 2012
I am not.
Nicole Middendorf
10:53 am on Friday, May 18, 2012
If you mean the theory I would say that I am very pro business. I am a business owner, love working with business owners and love watching small businesses change our environment.
Phil
9:36 am on Thursday, May 17, 2012
If that comment was directed towards me.