Posts Tagged ‘executives’
Friday, August 28th, 2009
In every margin scenario, you may note, the broker collects larger commissions and more spreads than in a simple purchase-and-hold scenario. More shares are used in the transaction, plus the transaction inevitably involves a purchase, a sale, and margin interest.
Overconfidence in your investment ability is the main cause of margin investing. It is not a coincidence that the highest margin on record, $279 billion dollars, occurred at the peak of the NASDAQ in March 2000. Five years of 20 percent plus returns led investors to believe they could handle margin. Margin investing is best left to speculators or those with an admitted desire to lose their fortune. Optimists will be happier with a buy-andhold strategy. Even after the worst bear market, they will still own their stocks, assuming no bankruptcies, and have the opportunity to again hope for a great rise.
Tags: business plans, cash dynamics, credit score, executives, interests
Posted in accounting, attitude, banking | Comments Off
Sunday, August 2nd, 2009
It’s possible to plan on the low side, of course, to set a financial goal that your company can reach easily. That may be a good idea for some new companies, allowing them to focus on building a solid foundation rather than stretching to meet a higher goal. But if the economy is generally good, easy goals can promote lax attitudes, keeping your company from becoming truly competitive. Then, if the economy starts to decline…
The bottom line here: Know your company and then set an appropriate financial goal.
Tags: CEO, company, economy, executives
Posted in accounting, attitude, business patterns, business publications, profitability | Comments Off
Sunday, August 2nd, 2009
How are you going to measure your success as a company in financial terms? The most basic measurement is a profit goal. You might also want to set ancillary goals—growth goals, sales goals, or whatever you think would be the best ways to gauge your progress and help you achieve your primary financial goal.
Then, ask a few hard questions. Is your goal realistic? Is it achievable? Are there ways to leverage the overall goal to achieve the financial goal? If not, one or the other has to be reconsidered.
Some CEOs seem to set goals according to their sense of business ideals or to really push their workers to the limit. Goals of IS percent profitability and 10 percent growth, for example, may sound great and look great on paper. But are they realistic for your company? Can you actually expect to achieve them? Also, if the overall economy is suffering, 15 percent and 10 percent might be improbable goals even for established companies.
Tags: CEO, company, entrepreneurs, executives
Posted in campaigns, financial principles, funds, merchandise, profitability, strategy elements | Comments Off
Sunday, August 2nd, 2009
Do the elements of your strategy make sense? Do they define the direction in which your company wants to go? Do they sound forced or contrived or simplistic? Or are these elements that can guide your company toward success?
If the strategy doesn’t sound right spoken aloud, it’s time to start over. If it makes sense and if it could make sense to any new employee, that means your business likely is on the right track in developing its business plan.
Strategies are important, but never mistake strategizing for acting. The best strategy in the world is no strategy if action isn’t built into the plan. There are companies that spend a lot of time meeting and working out strategies, but not moving on to map out a plan of action. You’re not likely to have heard of them, of course. Wonder why?
Tags: company, entrepreneurs, executives, manufacturers
Posted in business goals, business patterns, business publications, employee, negotiationg, strategy elements | Comments Off
Sunday, August 2nd, 2009
After you’ve defined your business strategy, you should test the elements of that strategy. There are many ways to do so, but there’s one simple test that can be tried without fear or risk:
Say the company’s goals aloud.
Strategies are important, but never mistake strategizing for acting. The best strategy in the world is no strategy if action isn’t built into the plan. There are companies that spend a lot of time meeting and working out strategies, but not moving on to map out a plan of action. You’re not likely to have heard of them, of course. Wonder why?
This can be done as part of a meeting of the board of directors, in the executive suite, or even in the privacy of the department manager’s office. Identify the internal elements of the strategy and say them aloud. Some business people refer to this approach as “Run it up the flagpole and see who salutes.” But at this point you don’t want acceptance and allegiance—you want critical thinking and tough questions. It’s time to test, not to salute.
Tags: competition, entrepreneurs, executives, manufacturers
Posted in business goals, business publications, business strategy, campaigns, companies, strategy elements | Comments Off