What to look for in Business Investments
When looking to invest in a business there are a number of criteria on which you can evaluate the company before you make your investment. Although all investments carry a certain amount of risk taking the time to properly evaluate the business should help you reduce the risk you are taking when you invest. The following are just some of the criteria on which you should judge a potential investment.
Quality of Management
A key factor in the success or failure of any business is the quality of its management. When deciding if a business is worth investing in you need to try to evaluate just how well managed the business is. A good management team should be knowledgeable, intelligent and able to make the right choices to ensure the long term success of the business. Of course this may not be an easy factor to evaluate but with some time and consideration you should be able to form a fair idea.
Does The Media Always Tell The Truth? - Do You Believe Everything You Read?
When you hear a news announcements predicting an imminent drop in the economy or see an article discussing the credit crunch, what is the first thought that you have regarding money? For the ‘average’ person it might be to identify possible methods to reduce their monthly outgoings. This would be understandable, as fear is a powerful emotion for determining how and where we spend our hard-earned income.
House owners decide that it is a bad time to sell their house to buy a new home, Drivers decide that it is not a good time to buy a new vehicle, parents vow not to spend a fortune on Christmas gifts for their children. Basically, demands for numerous products and services are reduced.
As an example, when less individuals are prepared to buy new homes, the cost of the average house drops. What happens to the rental market? The irony is that this is the best time to purchase a home if you have money and do not need to sell your house to buy the property.
Present Economic Challenges is an Opportunity for Caribbeanpreneurs to Shine
MONTSERRAT, W.I. – “Although the reports of a dire tourism season is cause to tighten our belts, it is also a time to free our thinking and move outside the box,” says entrepreneur and author Nerissa Golden.
Golden is the founder of the Young Entrepreneurs Symposium and Truly Caribbean Network, a non-profit foundation established to create opportunities for Caribbean people globally.
The Caribbean is bracing for a tough tourist season as many of the largest world economies are struggling to regain their financial footing. Governments and tourism organizations are scrambling for solutions and many are fearful of whether they will have a job in the coming months.
“This is not a time to allow fear to control and limit your thinking. It is time for Caribbeanpreneurs to find new strategies to get ahead. This crisis is also creating new opportunities and we need to open our eyes to see them,” added Golden.
Recession Proof Your Business – How to Avoid Business Failure & Increase Sales in a Lagging Economy
When you’re a small business owner
there’s no “Golden Parachute”, no Massive Severance Package or Stock Options to cash in on and there are definitely no bailouts. The success or failure of your small business is all on your shoulders!
Here’s Are 5 Things to Do If You Want Your Business to Fail During a Recession
1. Don’t Do Anything
2. Don’t Do Enough
3. Don’t Encourage Referrals From Other Clients
4. Don’t Create a “WOW” Experience
5. Don’t Take Massive Action Now
Now, if you want to build your small business, there’s good news.
You don’t have to sit back and become a victim of the times. Right now there are businesses and market segments that are making record profits. US Steel just posted record profits for the second quarter after losing huge orders from the auto industry.
The Customer Isn’t Always No. 1
Customers expect small businesses to provide the best customer service. However, by holding on to the old customer service strategy that the customer is No. 1, many small businesses have failed potentially loyal customers and watched their sales stagnate, retention erode, and repeat business dwindle. What small businesses need is a fresh approach. They need to realize that it’s their own employees who should be treated as No. 1.
Who knows how to handle customers better than your frontline employees? They regularly see and hear customer complaints and, if you listen to them, they usually have the best solutions.
To deliver a world-class customer service experience, businesses need to build their approach and strategies around those who execute it. It can be as simple as listening to employee suggestions and incorporating them into the larger picture. If you want to take it a step further, give them the power to think independently to instantly solve customer problems.
Is There Light at the End of the Tunnel? How to Recession Proof Your Business
The Dow is plunging, financial institutions are failing, credit is drying up and long-time Wall Street icons are plummeting into bankruptcy. The U.S. economy seems to be collapsing like a poorly stacked house of cards. The news is full of doom and gloom and more gloom. Is there light at the end of the tunnel?
In a word, yes. But it may be a long tunnel, manufacturing experts warn. Successfully weathering the storm will require a two-pronged attack: tighten up your business practices and calm worried employees.
Make Cash King
Keeping a sharp eye on cash flow will be essential in the coming months. With few exceptions, manufacturing markets are contracting. According to a recent report by the Institute for Supply Management, the Purchasing Managers Index (PMI), a composite index indicating manufacturing health, dropped an alarming 43.5% between August and September, posting its lowest numbers since 2001. Exports offered a glimmer of hope, but overall the manufacturing market is expected to show negligible growth for 2008.
Experts recommend taking the following steps:
1. Monitor cash flow. Watch for potential cash-draining trouble spots. You may need to reign in credit terms or be more aggressive about collections. Base every decision on a “cash is king” model.
2. Control expenses. Expenses should never exceed income. In a tight economy, there are no fixed expenses; every expense is negotiable. Review and update purchasing/service contracts regularly. Be prudent in purchasing policies. Don’t stockpile supplies and decrease order quantities as demand decreases. Limit buying to what you use and what increases sales.